Donald Trump Struggles to Secure $464m Payment in New York Civil Fraud Case
In a dramatic turn of events, Donald Trump is facing a major roadblock in his attempt to secure the $464m (£365m) payment he has been ordered to make in a New York civil fraud case. The former president is unable to find a private company willing to guarantee the hefty sum, putting his appeal at risk.
Trump’s legal team revealed on Monday that the task of securing a bond of that magnitude was proving to be a “practical impossibility”. The option of obtaining a bond involves a bonding company guaranteeing the full amount to the New York court, which they would have to pay if Trump loses his appeal and is unable to cover it himself.
Despite extensive efforts, including negotiations with major insurance companies, Trump’s lawyers were unsuccessful in finding a company willing to take on the risk. The former president’s two eldest sons are also implicated in the case and face significant financial obligations.
New York Judge Arthur Engoron not only ordered Trump to pay the penalty but also imposed a three-year ban on him running any businesses in the state due to his fraudulent practices. Trump’s attempts to secure a smaller bond amount were denied, leaving him in a precarious legal position.
The unprecedented nature of Trump’s legal troubles has left experts puzzled about the next steps. Former federal prosecutor Diana Florence remarked that while Trump’s legal team has been stalling, their options are running thin as the case progresses.
New York’s attorney general has issued a warning to Trump, threatening to seize his assets if he fails to pay the fraud judgment. With interest accruing daily, Trump faces mounting pressure to come up with the funds, as bond companies refuse to accept anything but cash or cash equivalents as collateral.
Despite his substantial wealth, Trump’s financial obligations continue to grow, with a separate defamation case already costing him $83m earlier this year. As the legal battle intensifies, Trump’s ability to navigate the complex financial landscape remains uncertain.
With the stakes higher than ever, Trump’s future hangs in the balance as he grapples with the consequences of his actions in the courtroom. The outcome of this legal saga could have far-reaching implications for the former president’s financial standing and reputation. — BBC
