The 77-year-old Republican politician has been granted a reduction in his massive civil fraud bond while he appeals to have the verdict against him overturned.
- Mar 26, 2024
AceShowbiz - Donald Trump has secured a $175 million reduction in his civil fraud bond, potentially averting the seizure of his assets. A New York appeals court issued the ruling on Monday, March 25, replacing the previous $454 million bond amount.
The $454 million judgment stems from a lawsuit filed by New York Attorney General Letitia James, who accused Trump, his sons, and the Trump Organization of fraudulently inflating property values to obtain loans.
Trump's legal team initially struggled to secure an appeal bond of that size, as bonding companies demanded cash or liquid assets as collateral. The Trump Organization reportedly does not have enough cash on hand to meet the request.
The appeals court's decision lowers the bond threshold, providing Trump with a 10-day window to obtain the necessary funds. He is expected to post a bond or pay the $175 million in cash.
Trump's lawyer, Charles Kise, welcomed the ruling as "a great first step towards the ultimate reversal of a baseless and reckless judgment." However, the judgment itself remains in place, and if Trump loses his appeal, he will be liable for the full amount.
The appeals court ruling also stayed trial Judge Arthur Engoron's decisions barring Trump from serving as an officer or director of a New York company for three years and prohibiting the Trump defendants from applying for loans from New York lenders for the same period. However, the court allowed the appointment of a financial watchdog to monitor the Trump Organization's finances.
Despite the reduction in the bond amount, Trump still faces accountability for the alleged fraud. James' spokesperson emphasized that the $464 million judgment (including interest) remains outstanding.
Trump has repeatedly condemned the verdict, claiming it is politically motivated to damage his chances in the upcoming presidential election.
