According to Reuters, Donald Trump has succeeded in temporarily halting a $454 million civil fraud judgment by posting a smaller $175 million bond within 10 days. This victory for the former U.S. president prevents New York state authorities from seizing his assets while providing relief from a looming cash shortage that would have necessitated selling assets at reduced prices to cover the initial judgment.
The mid-level state appeals court decision delays enforcement of a ruling that found Trump had exaggerated his wealth to deceive investors and lenders, offering him a timely reprieve from immediate financial obligations.
Trump expressed his appreciation for the court’s decision, stating that he would promptly arrange the required $175 million in cash, bonds, or securities. He made these comments while attending a court appearance related to a separate criminal case in New York.
New York Attorney General Letitia James’s office, responsible for the civil case, reiterated that Trump remains accountable for what they describe as a significant case of fraud.
As Trump continues to contest criminal charges and face substantial civil judgments, he concurrently runs for the U.S. presidency against Democratic incumbent Joe Biden in the upcoming November election.
Legal maneuvers by Trump have resulted in delays for three of the criminal trials against him, with a New York judge recently scheduling the fourth case – involving payments to a porn star – to commence on April 15.
Prior to the court’s decision to pause the judgment enforcement, Trump faced a deadline to fulfill the $454 million payment, which he asserted was beyond his current financial capacity. Failure to comply would have empowered James to initiate asset seizures, potentially impacting valuable real estate holdings such as his property at 40 Wall Street in Manhattan.
Trump has encountered challenges in fundraising for both his campaign and legal fees, maintaining his innocence in the criminal cases and refuting any accusations of wrongdoing in all legal matters brought against him.
The civil case in New York revolved around Trump’s alleged inflation of his net worth by billions to secure more favorable loan and insurance terms, with Trump attributing the legal action to political bias from James, a Democratic official.
Judge Arthur Engoron determined that Trump had engaged in fraudulent practices by overinflating the values of properties like Mar-a-Lago in Florida, his Trump Tower penthouse, and several office buildings and golf courses. The trial predominantly focused on determining the appropriate penalties for Trump to pay.
In a separate defamation case, Trump has offered a $91.6 million bond to address a defamation ruling in favor of writer E. Jean Carroll, who accused Trump of defamation following her allegations of rape from years ago. Trump is currently appealing this judgment as well.
Trump’s criminal cases emerged from his attempts to overturn the 2020 election results, mishandling classified materials post-presidency in 2021, and payments made to a porn star ahead of his 2016 election who claimed to have engaged in a previous sexual encounter with him.
(Reporting by Jack Queen and Luc Cohen in New York; Additional reporting by Nathan Layne in Milton, Connecticut; Editing by Andy Sullivan, Will Dunham, and Noeleen Walder)
