Former President Donald Trump is facing a major challenge in finding an insurance company willing to underwrite his bond to cover the massive judgment against him in the New York attorney general’s civil fraud case. His lawyers revealed to a New York appeals court that Trump has approached 30 underwriters, but very few are willing to consider a bond of the magnitude required, which exceeds $464 million with interest.
The difficulty lies in the fact that potential underwriters are seeking cash to back the bond, rather than properties, as Trump's attorneys have clarified. This presents a significant hurdle for Trump, as his properties' value, while substantial, may not be immediately accessible for this purpose.
Trump's legal team has requested the appeals court to delay posting the bond until his appeal is resolved, highlighting that the value of his properties far exceeds the judgment. They argue that if the court rules against him, he should be allowed to delay posting the bond until his appeal to New York’s highest court is heard.
Trump himself expressed his disbelief at the situation, calling it “practically impossible” for him to post the bond. He took to Truth Social to denounce the size of the bond as "unConstitutional, un-American, unprecedented, and practically impossible for ANY Company, including one as successful as mine."
In a separate civil fraud case, Trump was ordered to pay $355 million in disgorgement, or “ill-gotten gains,” by New York Judge Arthur Engoron. This, combined with the current judgment, amounts to over $450 million with interest. Trump is appealing these rulings, but to prevent the state from enforcing the judgment, he must post a bond, a task that seems daunting given the underwriters' requirements.
Gary Giulietti, an insurance broker who testified for Trump during the civil fraud trial, stated in an affidavit that obtaining a bond in the full amount “is a practical impossibility.” He explained that some of the largest underwriters have internal policies limiting them from securing a bond in excess of $100 million and that none of them are willing to accept real estate as collateral.
In light of these challenges, Trump and his legal team are facing an uphill battle in securing the necessary bond. The situation underscores the complexities and legal intricacies involved in high-stakes legal disputes, especially those involving prominent figures.
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