Former President Donald Trump faces challenges in finding an insurance company willing to underwrite his bond to cover the substantial judgment against him in the New York attorney general’s civil fraud case, as revealed by his legal team to a New York appeals court.
According to Trump’s lawyers, he has approached approximately 30 underwriters to secure the bond, which is required by the end of this month. The judgment, including interest, surpasses $464 million, making it daunting for bonding companies to consider such a substantial bond.
Trump’s attorneys highlighted the difficulty of obtaining the bond in full, indicating that potential underwriters are demanding cash rather than properties as collateral.
Trump’s legal team has requested the appeals court to delay the posting of the bond until the completion of his appeal, citing the substantial value of Trump’s properties compared to the judgment amount. Additionally, they seek a postponement until the appeal reaches New York’s highest court if the appeals court rules unfavorably.
Trump expressed his concerns regarding the feasibility of posting the bond, branding it “practically impossible.” In a post on Truth Social, he criticized the size of the bond as unprecedented and beyond the capabilities of any company, including his own.
Last month, Trump was ordered by New York Judge Arthur Engoron to pay $355 million in disgorgement in a civil fraud case brought by New York Attorney General Letitia James. Engoron ruled that Trump and his co-defendants, including his adult sons, were liable for fraud and conspiracy, alleging they inflated the value of Trump’s assets to secure favorable loan and insurance rates.
Trump’s appeal process could extend over several years, during which time the bond would be held in an account. While Trump posted a $91.6 million bond earlier this month for his appeal in the E. Jean Carroll defamation case, challenges remain in securing the larger bond required for the civil fraud case.
According to Alan Garten, the top legal officer of the Trump Organization, major underwriters, including Chubb, have limitations on accepting real estate as collateral, posing a significant obstacle to obtaining the bond.
Despite the hurdles, Trump’s campaign spokesman Steven Cheung criticized the size of the fraud judgment, denouncing it as an abuse of the law and vowing Trump’s continued fight against what he termed as “Crooked Joe Biden-directed hoaxes.”
