(RightIsRight.co) – Despite the unstoppable effort and measures of former President Donald Trump’s lawyers to help him with his legal ventures, Trump is facing difficulty in securing a bond to cover the $454 million judgment against him for civil business fraud while he appeals the case.
In a court filing in New York, Trump’s legal team and his co-defendants in the fraud case argued that obtaining a complete appeal bond was “impossible” as it would essentially require cash reserves close to $1 billion.
″Defendants’ ongoing diligent efforts have proven that a bond in the judgment’s full amount is ‘a practical impossibility,’” the lawyers wrote and quoted an affidavit included in the filing with the Appellate Division of Manhattan Supreme Court.
They elaborated that they had approached about 30 surety companies through four different brokers and had spent considerable time negotiating with one of the largest insurance companies globally.
The lawyers proposed that if the appellate division considers denying the requested stay of the judgment, it should hold oral arguments on the matter. Additionally, they requested that if the division rejects granting the stay, they be allowed to file an appeal with New York’s highest state court, the Court of Appeals.
In mid-February, Manhattan Supreme Court Judge Arthur Engoron ordered Trump and his co-defendants to pay a total of $464 million in damages and interest for breaching a New York anti-fraud statute.
Moreover, New York Attorney General Letitia James accused Trump and his two eldest sons, his company, and its top executives of inflating Trump’s asset values over several years to boost his net worth and receive financial benefits.
Despite Trump’s claim in a deposition last year that he had “substantially in excess of $400 million in cash,” the filing argued that obtaining a bond for the full $464 million judgment was unattainable.
The filing included an affidavit from the President of the Northeast division of the Lockton Companies, Gary Giulietti, who described it as the largest privately held insurance brokerage firm globally.
Giulietti hired to assist the defendants in obtaining a bond, stated, “Despite scouring the market, we have been unsuccessful in our effort … for the simple reason that obtaining an appeal bond for $464 million is a practical impossibility under the circumstances presented.”
The defense attorneys further highlighted that bond issuers typically demand collateral amounting to 120% of the judgment, which translates to over $557 million.
They are also likely to require a two-year advance on a 2 % annual bond premium, which is a necessity for an upfront payment of over $18 million from the defendants.
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