Trump Cannot Pay $464 Million Bond

( – In a recent development surrounding former President Donald Trump’s ongoing legal challenges, his legal team has encountered significant difficulties securing an insurance company willing to underwrite a bond for a substantial judgment against him. This judgment stems from a civil fraud case led by the New York Attorney General, where Trump was found liable for various financial discrepancies.

Trump’s legal representatives have reportedly approached over 30 underwriters in an attempt to secure a bond that would cover the judgment, which, with interest included, exceeds $464 million. This figure encompasses a $454 million obligation assigned to Trump himself, along with additional penalties related to his adult sons, Don Jr. and Eric. The magnitude of this bond, as stated by Trump’s attorneys, presents a considerable challenge, with few companies prepared to consider underwriting a bond of this scale.

An affidavit from insurance broker Gary Giulietti, who played a role in Trump’s defense during the trial, underscored the enormity of the challenge, describing the procurement of a bond in the full judgment amount as “a practical impossibility.” Giulietti’s insights reveal that potential underwriters are not willing to accept properties as collateral, instead demanding cash to back the bond.

Faced with this impasse, Trump’s legal team has petitioned the appeals court for a postponement in posting the bond, arguing that Trump’s property assets significantly surpass the judgment value. They have proposed delaying the bond posting until the appeal process is concluded, which could span several years. Additionally, if the appeals court decision is unfavorable, Trump seeks a further delay until an appeal can be made to New York’s highest court.

The legal backdrop to this scenario was set by New York Judge Arthur Engoron, who ordered Trump to pay $355 million in disgorgement, termed as “ill-gotten gains,” as part of a civil fraud case initiated by New York Attorney General Letitia James. Engoron’s 93-page ruling implicated Trump and co-defendants, including his sons, in fraudulent activities aimed at inflating asset values to secure favorable loan and insurance rates. This judgment, with added interest, brought Trump’s financial obligation to over $450 million.

In contrast, Trump managed to secure a $91.6 million bond earlier in the month related to his appeal in the E. Jean Carroll defamation case, showcasing the stark difference in financial undertakings between the two cases. Giulietti highlighted that major underwriters typically cap bonds at $100 million and have a policy against accepting real estate as collateral, demanding cash or stocks instead. This policy complicates Trump’s efforts to secure a bond, potentially requiring him to raise over $550 million, including fees and interest.

Reflecting on his extensive career in bond issuance, Giulietti noted the unprecedented nature of such a large bond requirement for an individual or private company, emphasizing the Herculean effort made in good faith to meet these demands, albeit unsuccessfully. Echoing these sentiments, Alan Garten, the Trump Organization’s chief legal officer, highlighted the refusal of Chubb, the company that underwrote the bond for the Carroll judgment, to accept real estate as security for the civil fraud bond.

The struggle to secure a bond underscores broader tensions and criticisms, with Trump campaign spokesman Steven Cheung condemning the judgment’s magnitude as a misuse of law, contradictory to foundational principles of the Republic, and detrimental to the rule of law in New York. Cheung’s statement reflects a commitment to contesting what the Trump camp views as politically motivated legal challenges, promising continued efforts to “Make America Great Again.”