New York City, NY: A $175 million surety has been posted by former President Donald Trump and co-defendants in his New York civil fraud case, an insurance company filed with the court on Monday.
The publication concludes a six-week ordeal during which Trump frantically attempted to avert the potential seizure of property or assets in response to a court’s $464 million judgment. The judge had determined that Trump amassed hundreds of millions of dollars through a years-long fraud scheme that targeted banks and insurers. In anticipation of his appeal, Trump was obligated to post surety in order to prevent the judgment from being executed.
Trump’s counsel, Alina Habba, stated that the payment was processed “as promised.”
“He looks forward to vindicating his rights on appeal and overturning this unjust verdict,” Habba indicated.
Trump To Face Asset Seizure If He Fails To Comply; Trump Tower In New York City Among Many At Risk
On March 25, an appellate court reduced the bond from $464 million to $175 million, hours after Trump failed to comply with a grace period deadline extended by the office of New York Attorney General Letitia James, which initiated the legal proceeding.
James’s spokesperson refused to provide further comment. James had expressed that if Trump failed to post surety, her office would pursue his assets.
“We will petition the judge to seize his assets and pursue judgment enforcement mechanisms in court if he is unable to repay the judgment in cash,” she stated in February.
A filing dated March 18 in the case indicated that attorneys for Trump stated that the defendants faced a “practical impossibility” in obtaining the initial bond, which was valued at approximately $500 million. They reported that he had been denied by more than thirty surety companies.
“Very few bonding companies will consider a bond of that magnitude or more,” the attorneys Alina Habba, Clifford Robert, Christopher Kise, and John Sauer wrote in their letter. They noted that to guarantee the bond, surety providers frequently demand collateral of up to 120%, thereby increasing the amount Trump may require beyond $500 million.
The 18 March filing detailed over thirty companies that the Trump Organization allegedly contacted in an attempt to secure the larger bond; all of them declined. Knight Specialty Insurance Company, the provider of the $175 million bond on Monday, was not included on that list.