Trump New York Fraud Bond Cut to $175 Million in Appeal from $454 Million

Trump New York Fraud Bond Cut to $175 Million in Appeal from $454 Million

A New York appeals court has temporarily halted a significant civil business fraud judgment against Donald Trump for ten days and has reduced the required bond amount to $175 million for a longer stay of the award.

This decision came on the day when New York Attorney General Letitia James could have initiated the process of seizing Trump's real estate assets and bank accounts to satisfy the escalating $454 million judgment after he failed to secure an appeal bond.

However, the five-judge panel in Manhattan Supreme Court’s appellate division has prevented James from taking action at this time.

In response to the court's decision, Trump stated on social media that he would "post either a bond, equivalent securities, or cash" in the revised amount set by the appeals court.

Earlier, Trump expressed frustration in a Truth Social post, indicating that he might have to sell his real estate assets to meet the substantial judgment while appealing the case, where he and other defendants were found to have fraudulently inflated property values over several years.

Trump's legal team had initially suggested an appeal bond of $100 million, citing challenges in obtaining a bond for $454 million from multiple surety companies.

The appeals court's ruling reduces the bond amount but also lowers the size of the judgment in the case. If Trump and the co-defendants lose their appeal, they would be liable for the full judgment, unless the appeals court modifies it.

Additionally, the appeals court's order temporarily lifts certain restrictions imposed by trial Judge Arthur Enfgoron, such as barring Trump from serving as an officer or director of a New York company for three years and restricting the Trump Organization's loan applications from New York lenders for the same period. However, the order does not block enforcement of Enfgoron's appointment of a financial monitor for the Trump Organization's finances.

The fraud lawsuit was filed by Attorney General Letitia James against Trump, his two adult sons, the Trump Organization, and two executives. In February, Judge Engoron ruled against the Trump defendants, citing submission of false financial data to enhance Trump's financial statements and obtain favorable loan terms.

Trump has criticized the verdict, alleging political motives to undermine his candidacy against President Joe Biden in the upcoming election.

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