Former President Donald Trump has been unable to obtain bail to secure a $464 million fraud judgment against him, his lawyer said in a court filing Monday.
President Trump and his company have until next week to post the full bond to prevent New York Attorney General Letitia James from collecting it pending appeal. They have asked the Court of Appeals to intervene in the meantime and said Monday they have been unsuccessful in obtaining bond.
“Due to the defendants' continued and diligent efforts, bail for the full sentence has proven to be 'practically impossible,'” the filing states. “These intense efforts include approaching approximately 30 surety companies through four separate brokers.”
Due to their efforts, which included “countless hours of negotiation with one of the world's largest insurance companies,” it was “impossible in the circumstances presented” to “obtain the full appeal bond” of the judgment. The application states that this has been proven.
Other bond companies do not “accept hard assets such as real estate as collateral” and “only accept cash or cash equivalents (such as securities),” the filing states. He also noted that these companies typically “require collateral of about 120% of the judgment amount,” which totals about $557 million.
“Additionally, the guarantor will likely charge a bond premium of approximately 2% per year for two years upfront, resulting in upfront costs in excess of $18 million,” the filing states. Even if President Trump were to win his appeal, he would not be able to recover the $18 million.
The application states that an actual amount of cash or cash equivalents is required for the approach “to have sufficient capital to collateralize the notes, operate the business, and meet other obligations.” Masu.[es] 1 billion,” the filing states.
The filing says Mr. Trump cannot afford bail, but also argues that the attorney general does not need to worry about whether he will be able to collect the judgment.
“Defendants' real estate holdings, including iconic properties such as 40 Wall Street, Doral Miami, and Mar-a-Lago, significantly exceed the amount of the judgment. Such assets may be secretly kept secret or It is impossible to dispose of them, and plaintiffs are effectively kept safe pending appeal,'' the filing states.
Trump's team also argued that the $464 million fine was “grossly disproportionate” and argued that there were “no harms or economic losses, so there are no victims” throughout the months-long trial. was cited.
In a filing last month, Trump's lawyers asked for his bail to be reduced to $100 million, but in Monday's filing they argue that he doesn't need to post any bail at all.
Mr. James' office insists that Mr. Trump should pay the full amount.
Mr. Trump also asked for a stay to be halted so he could pursue his case in the state's highest court, the Court of Appeals, if the state appellate division denies his request.
In a separate case in New York federal court, Trump posted $91 million bail last week to secure an $83 million defamation judgment against author E. Jean Carroll; An appeal is being filed.