Appellate court gives Trump a lifeline, says he can just post a bond for $175 million for now
- An appeals court on Monday gave Donald Trump a lifeline, cutting his bond down to $175 million.
- He had previously told the court he could not secure a $454 million bond in his fraud case.
A New York appeals court gave Donald Trump a break on Monday, allowing him to post a $175 million bond in his New York civil fraud case instead of requiring him to cover the entire $467 million he and his company now owe.
Trump will have 10 days to come up with the $175 million bond, which is required to stop the New York Attorney General's assets to seize his assets to enforce the New York civil fraud judgment against him.
Following a three-month trial, New York Supreme Court Justice Arthur Engoron found Trump and other Trump Organization executives liable for the nearly half-a-billion dollar penalty last month, finding they had conspired to inflate the value of their real estate assets to dupe lenders.
Trump is on the hook for the bulk of the giant judgment. As of Monday, he personally owes the state of New York $457 million.
New York Attorney General Letitia James initially gave the former president 30 days from the February 23 judgment to pay up or secure an appeal bond to cover the cost of the penalty while he fought the ruling in court.
Monday's decision gives Trump a lifeline as he appeals the ruling. It requires him to file a full appeal in time for the September 2024 court term, giving Trump yet another court deadline in the lead-up to this year's presidential election, where he's expected to be the Republican nominee.
In addition to pausing the monetary penalty, Monday's decision also blocks parts of Engoron's judgment that make it harder for the former president and other Trump Organization executives to do business in New York by restricting their abilities to lead corporations and get loans.
The Appellate Division's decision, however, allowed other parts of Engoron's judgment to go through, including his requirements for increased monitoring and compliance for the Trump Organization's finances.
Speaking to journalists Monday in Manhattan criminal court, after a hearing for his upcoming hush-money trial, Trump applauded the appeal court decision. He said he would post the bond with "cash" within the 10-day limit.
"It will be my honor to post," Trump said. "And we'll post whatever's necessary, whether it be security or bond."
In an emailed statement, Alina Habba, one of Trump's attorneys in the civil fraud trial, called Engoron's judgment "an affront to all Americans" and claimed James's investigation into her client was "a targeted witch hunt."
"Donald Trump is still facing accountability for his staggering fraud," James said in her own statement. "The court has already found that he engaged in years of fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization. The $464 million judgment — plus interest — against Donald Trump and the other defendants still stands."
Trump had previously argued that securing a bond for the entire amount would have required he provide $1 billion in cash reserves. He said he was spurned by 30 companies that provide appeal bonds.
Trump continues to accrue $112,000 in interest each day he delays payment of the full judgment, meaning his debt to the state rises about another $1 million every nine days.
If he loses all appeals, he will owe the state the entire amount, which is currently at nearly half a billion dollars.
This story has been updated.