INTERNATIONAL

Before the US Presidential elections, Donald Trump posts a $175 million bond to prevent asset confiscation

In his civil fraud lawsuit in New York, former US President Donald Trump posted a USD 175 million bail, stopping the state from taking his assets to pay the bill while he files an appeal. Trump owes more than USD 454 million. The former president was granted ten days by a New York appeals court to provide the funds after a panel of justices’ decision last month to reduce the amount required to halt enforcement.

In order to ensure payment in the event that the judgement is upheld, Trump is now posting a placeholder bond with the court. In such a case, the state will get the whole amount, plus daily interest, from the presumed Republican presidential candidate. In the event that Trump prevails, he will get his money back in addition to not having to pay any taxes to the state. Letitia James, the attorney general of New York, was prepared to begin steps to collect the judgement, perhaps by taking some of Trump’s most notable assets, until the appeals court intervened to reduce the needed bail. The state was represented in this case by Democrat James.

Has Trump inflated the value of his properties?
The court made its decision in response to Trump’s attorneys’ objection that it would be “practically impossible” to convince an underwriter to approve a bond for the USD454 million that he owes, interest included. Trump is battling to reverse a judge’s decision from February 16th, which found that while he was building the real estate enterprise that propelled him to fame and the presidency, he had lied about his wealth. The main topic of the trial was how Trump’s assets were evaluated based on the financial statements he sent to insurers and bankers in order to get agreements and loans.

Trump disputes any misconduct.
Trump disputes any wrongdoing, claiming the claims were disclaimer-filled, lowballed his wealth, and weren’t accepted at face value by the organisations that provided him with insurance or loans.

The Appellate Division of the state courts has announced that it will hear arguments in September. There is no definite date for this. It will occur in the latter stages of the presidential campaign if the timeline is followed.
The filing of an appeal often has no effect on the execution of a judgement under New York law. However, if the person or business secures a bond guaranteeing payment of what’s owed, there’s an automatic delay, or in legalese, a stay.

As in Trump’s case, courts sometimes make exceptions and reduce the amount needed for a stay. More than thirty bonding agencies refused to accept a combination of cash and real estate as security for a bond worth more than USD 454 million, as disclosed by Trump’s legal team to the appeals court. According to the lawyers, underwriters insisted on just cash, stocks, or other liquid assets. According to them, the majority of bonding agencies want collateral that equals 120% of the debt.

Trump’s financial reserves have suffered as a result of his litigation problems.
Along with billions of dollars’ worth of real estate and other assets, Trump recently said that he had about half a billion dollars in cash. However, he stated that he wanted to keep some cash on hand for his potential presidential campaign. Trump’s financial reserves have been significantly reduced by recent litigation bills.

Apart from the $175 million that he was required to deposit in the New York lawsuit, Trump has also posted a bond and cash over USD97 million to pay writer E. Jean Carroll’s debt while he challenges decisions in two federal civil cases. Juries concluded that he had molested her sexually in the 1990s and had slandered her when she came out with the claim in 2019. He refutes each and every accusation.
Trump settled his failed lawsuit against The New York Times and three writers over a Pulitzer Prize-winning 2018 investigation about his family’s wealth and tax affairs in February, paying the USD 392,638 in legal costs that the court had ordered him to pay.

In March, a British judge mandated that Trump reimburse a corporation he had sued for the so-called Steele dossier, which included slanderous accusations about him, for 300,000 pounds (USD 382,000) in legal expenses. Trump refuted the assertions. Though it would be a longer-term move, Trump may someday make money by selling part of the approximately 60% of shares he holds in his recently public social media firm, Trump Media & Technology Group. Trump may have a billion-dollar investment in the company, but insiders like him are prohibited from selling their shares for six months due to a “lock-up” clause.

Related Articles

Back to top button