New York judge refuses to halt Trump’s $454-million penalty during appeal of fraud judgment
NEW YORK — A New York appellate judge refused Wednesday to halt collection of Donald Trump’s $454-million civil fraud penalty while he appeals, rejecting the former president’s request that he be allowed to post a bond covering just a fraction of what he owes.
Judge Anil Singh of the state’s midlevel appeals court ruled that Trump must post a bond covering the full amount in order to stop enforcement of the judgment.
Singh did grant some of Trump’s requests, including pausing a three-year ban on seeking loans from banks in the state — which could help him secure the full bond.
Trump’s lawyers had told the appellate court that Trump was prepared to post a $100-million bond, arguing that the lending ban in the Feb. 16 verdict made it impossible for him to secure a bond for the full amount.
The attorneys floated the smaller bond offer in filings as they sought to prevent state Atty. Gen. Letitia James’ office from enforcing the judgment while Trump’s appeal plays out.
Singh ruled that Trump must post the full amount as a bond in order to pause collection of the penalty.
Donald Trump has appealed his $454-million New York civil fraud judgment, challenging a judge’s finding that he lied about his wealth.
The Republican presidential front-runner and his co-defendants owe a total of more than $465million to the state. They have until March 25 to secure a stay to pause collection while they appeal, or they’ll have to pay the penalty or risk having some of their assets seized.
“The exorbitant and punitive amount of the judgment coupled with an unlawful and unconstitutional blanket prohibition on lending transactions would make it impossible to secure and post a complete bond,” lawyers Clifford Robert, Alina Habba and Michael Farina wrote in their request.
James’ office opposed the offer to post $100million, saying Trump’s lawyers had all but conceded he has “insufficient liquid assets to satisfy the judgment.”
“These are precisely the circumstances for which a full bond or deposit is necessary,” wrote Dennis Fan, senior assistant state solicitor general, saying Trump’s offer would leave the state “with substantial shortfalls” if the verdict is upheld.
“Defendants have never demonstrated that Mr. Trump’s liquid assets could satisfy the full amount of the judgment,” Fan added.
James has said she will seek to seize some of Trump’s assets if he can’t pay the judgment.
Letitia James says she would move to seize the former president’s properties if he cannot cover the bill from his civil fraud trial, but he has vowed to appeal.
Judge Arthur Engoron ruled earlier this month that Trump, his company and top executives, including sons Eric and Donald Jr., had schemed for years to deceive banks and insurers by inflating Trump’s wealth on statements used to secure loans and make deals.
Engoron’s judgment was filed and made official Feb. 23, starting a 30-day window for Trump to pay or file an appeal and seek a stay.
Also Wednesday, white powder was found in an envelope addressed to Engoron at his Manhattan courthouse. Officials said preliminary testing showed it was negative for hazardous substances and no injuries were reported. In January, hours before closing arguments in the case, a bomb threat was made on the judge’s home. His chambers have reported hundreds of harassing and threatening calls, emails, letters and packages since October, when the trial began.
In Trump’s appeal, filed Monday, he is asking the Appellate Division of the state’s trial court to decide whether Engoron “committed errors of law and/or fact” and whether he abused his discretion or “acted in excess” of his jurisdiction.
Trump wasn’t required to pay his penalty or post a bond in order to appeal, but filing the appeal does not automatically halt the state’s collection of the money.
Trump would receive an automatic stay if he were to put up money, assets or an appeal bond covering the full amount that he owes. He also had the option he exercised Wednesday to ask the appeals court to grant a stay with a bond for a lower amount — but now that has been refused.
Under the judge’s ruling Friday, Trump would still be liable to pay even if the Trump Organization declares bankruptcy.
Trump’s lawyers had argued that his vast real estate assets and the oversight mandated by Engoron’s ruling, including supervision of the company by an independent monitor, would “be sufficient to adequately secure any judgment affirmed,” and said a $100-million bond would “serve as further security.”
Trump maintains that he is worth several billion dollars, and testified last year that he had about $400 million in cash on top of properties and other investments.
He has at least $543.4 million in personal legal liabilities in this case and two other civil court judgments over the last year.
In January, a jury ordered him to pay $83.3 million to writer E. Jean Carroll for defaming her after he was found liable for sexually assaulting her in the 1990s. That’s on top of the $5 million a jury awarded her in a related case against Trump last year.
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