Donald Trump fails to secure $454 million bond in New York fraud case, say his lawyers

Donald Trump failed to secure a bond that would have allowed him to appeal a $454 million judgment against him in a New York civil fraud case without depositing the entire sum, his attorneys said on Monday (Mar 18).

The former US president needs to either come up with the money or post a bond in order to keep the state's authorities from seizing his properties as he appeals Justice Arthur Engoron's judgement from Feb 16 that ordered him and co-defendants to pay $464 million in penalties and interest for misstating property values to deceive lenders and insurers.

The Republican presidential candidate's attorneys argued that the judgment's sum was excessive and asked a mid-level state appeals court to postpone its execution in a court filing on Monday.

They stated that obtaining a total appeal bail would "effectively" require "cash reserves approaching $1 billion" and that doing so was "impossible."

They added that so far the defendants had approached 30 surety companies through four separate brokers in order to obtain a bond.

"Enforcing an impossible bond requirement as a condition of appeal would inflict manifest irreparable injury on Defendants," Trump's lawyers wrote.

The lawyers urged that instead, Trump be allowed to post a $100 million bond while he appeals the judgment.

If Trump loses his appeal and it turns out that he cannot afford the money, a bonding company would be responsible for any payout.

Trump's attorneys included a declaration from Gary Giulietti, an executive of the insurance brokerage firm the Lockton Companies, which Trump has hired in order to help him obtain a bond.

Giulietti in his statement wrote that a bond for the entire $464 million "is not possible under the circumstances presented." He also pointed out that many sureties would not issue bonds above $100 million and would only accept cash or securities as collateral, and not real estate.

The judgment

The order by Judge Engoron has barred Trump and his sons from conducting business in New York: Trump for three years and his sons for two.

The former US president has also been barred from applying for loans from any New York chartered or registered financial institution during this period.

"Their complete lack of contrition and remorse borders on pathological," Engoron said of Trump and his two sons during the hearing.

Trump has denied any wrongdoing in the case.

Earlier this month, the former US President posted a $91.6 million bond to cover an $83.3 million defamation verdict for the writer E. Jean Carroll case who accused Trump of raping her decades ago.

(With inputs from agencies)