Former US President Donald Trump speaks as he arrives at a Manhattan court for the trial of himself, his grown sons, the Trump Organization and others in a political fraud case brought by New York State Attorney General Letitia James , USA, on October 2, 2023.
Brendan McDermid | Reuters
Former President Donald Trump has not proven he has enough cash to cover the full amount of a $464 million civil fraud judgment if he loses his appeal, New York’s chief legal officer warned. court filing Monday night.
New York Attorney General Letitia James expressed that concern as she argued that Trump and his co-defendants should be required to post cash or bond covering the entire fraud judgment if they want to stay it while they challenge the judgment.
“Defendants have never demonstrated that Mr. Trump’s liquid assets — which may fluctuate over time — will be sufficient to satisfy the full amount of this judgment upon appeal,” James told an appeals court. of New York.
Trump properties may also drop in value as the appeal drags on, while post-ruling interest continues to rise, he wrote.
His finances could be further strained by his other civil and criminal battles, James added, including a jury verdict in January ordering him to pay $83.3 million in damages for defamation of author E. Jean Carroll.
Trump “has significant liabilities that may further reduce his liquid assets, including other pending judgments against him, and faces multiple criminal charges,” he wrote, pointing to that verdict.
Without a full commitment, those accused of political fraud – Trump, his two adult sons, his company and its top executives – may also try to “avoid” or aggravate the execution of the ruling if they lose the appeal, he warned. James.
He urged the appeals court to reject Trump’s offer to stay the judgment on $100 million bail, less than a quarter of the total amount awarded by Manhattan Supreme Court Justice Arthur Engoron.
Trump’s lawyers did not immediately respond to CNBC’s request for comment on James’ filing.
Defense attorneys had argued that the lower bond amount was enough to secure the judgment, combined with continued oversight of the Trump Organization’s assets by a court-appointed financial monitor.
New York Attorney General Letitia James sits in the courtroom during the political fraud trial of former President Donald Trump and his children in New York State Supreme Court on November 3, 2023 in New York.
David Sanders | Getty Images
They argued it would be “impossible” for them to secure a full appeal bond, which could be set at 120% of the judgment – more than $550 million – as that ruling also barred Trump from applying for loans in New York.
James disputed that claim, writing that the defendants “fail to provide information regarding the steps (if any) they have taken to secure a bond prior to the filing of their motion.”
They have yet to show that Trump — a self-styled multibillionaire who said in a deposition last year that he has more than $400 million in cash — tried and failed to obtain a bond, he noted. The lending ban is also not a barrier because appeal bonds are not loans, he wrote.
Appeal bonds are intended to ensure that the person awarded damages will be able to collect that money if the verdict is upheld on appeal. The person posting the bond will get their deposit back if they win their appeal.
New York Court of Appeals Judge Anil Singh on Feb. 28 rejected a $100 million bond bid but allowed the defendants to continue operating in New York and lifted a loan-seeking ban.
That interim ruling comes into effect before a full panel of appeals court judges is set to hear the matter next week.
Meanwhile, Trump on Friday posted a $91.6 million bond as he appeals a federal court verdict finding him liable for defamation of Carol after she accused him of raping her in the mid-1990s.
This was the second court to order Trump to pay Carroll damages for defamation. The presumptive Republican presidential nominee continued to attack Carroll, prompting her lawyers to suggest they may file another defamation suit.