By JENNIFER PELTZ (Associated Press)
NEW YORK (AP) — Former President Donald Trump got a break this week when an appeals court cut down the amount of money he needs to put up to pause collection while he appeals a $454 million-plus judgment in his New York civil fraud case.
Here’s a look at what happened and what could happen next:
The judgment reflects the $355 million — plus interest and growing daily — that state Judge Arthur Engoron ordered Trump to pay after a months-long trial.
The trial stemmed from a lawsuit brought by state Attorney General Letitia James. She claimed that Trump, his company and key executives engaged in fraud by pumping up the tycoon-turned-politician’s fortune on financial statements that helped secure loans and insurance.
Trump, now once again the presumptive Republican presidential nominee, denied the allegations, as did his co-defendants. The defense said bankers and insurers used the unaudited statements only to inform their own assessments of Trump’s finances, rather than basing business decisions on them. He says the documents understated his wealth, anyway.
Engoron ruled last month for the attorney general. Trump appealed.
A five-judge panel of appeals judges agreed Monday to put the collection on hold if Trump puts up $175 million within 10 days. It was a considerable reprieve, especially given that one of the judges had turned down Trump’s earlier offer of a $100 million bond.
Under New York law, someone can hold off enforcement of a judgment during an appeal by posting a bond — essentially, a guarantee that the money will be paid if the appeal fails — or otherwise covering the amount owed.
Trump’s lawyers said he was unable to arrange such an enormous bond. They said potential underwriters were requiring 120% of the judgment, or over $557 million, in collateral and would take only cash or other liquid assets, not real estate. It’s common for bonds to exceed the actual amount of judgments, in order to cover interest and costs that accrue during the appeal.
The attorneys suggested that to provide collateral for the bond and still keep a chunk of cash for his business operations, Trump would have to have close to $1 billion in cash, stocks or other liquid assets. Trump, meanwhile, said on social media that he has almost $500 million in cash but wants the option of spending some on his campaign.
James’ office, meanwhile, had filed notice of the judgment, a technical step toward potentially moving to collect.
Shortly after learning of the appeals court’s decision, Trump said he would swiftly come up with a bond, equivalent securities, or cash.
Earlier this month, Trump obtained a $91.6 million appeals bond to cover money that a federal civil court jury awarded to writer E. Jean Carroll. She alleges that Trump sexually assaulted her in the 1990s and then defamed her when she publicly accused him in 2019. He denies all of Carroll’s claims and is appealing.
Federal Insurance Co., a unit of the insurance giant Chubb, underwrote that bond. It covers 110% of the $83.3 million owed.
After an earlier but related federal civil trial involving Carroll, Trump put more than $5.5 million in cash in a court escrow account while appealing thejury verdict in that trial.
If the verdict is upheld on appeal, that money will cover the judgment. Anything left over would go back to Trump.
If the verdict is ultimately overturned, he’ll get the full amount back.
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Associated Press writer Michael R. Sisak contributed to this report.
