Trump in Crisis: Rush to Secure Massive Bond Deadline
The pressure mounts on former President Donald Trump as he scrambles to secure a half-billion-dollar bond before the deadline, intensifying the panic surrounding his civil fraud case in New York. Insights from close sources reveal the heightened tension in Trump's camp as time runs out for the crucial appeal.
Former President Donald Trump is feeling anxious as the deadline approaches to secure a half-billion-dollar bond for his appeal in a civil fraud case in New York. According to sources familiar with his thoughts, he is in panic mode.
On Monday, Trump's lawyers confirmed that he was having difficulty finding an insurance company willing to underwrite his $454 million bond. Despite hoping that Chubb, the company that underwrote his $91.6 million bond for the E. Jean Carroll judgment, would step in, they informed his attorneys recently that this was not an option anymore.
Republican presidential candidate former President Donald Trump in Nashville, Tennessee in February.
Republican presidential candidate former President Donald Trump in Nashville, Tennessee in February.
Jon Cherry/Getty Images
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Trump's lawyers informed the court that he is unable to come up with the $464 million bond in the civil fraud case. His team has been reaching out to wealthy supporters and considering selling off assets quickly. Trump himself is worried about how missing the March 25 deadline may affect his public image, especially as someone known for his wealth. He has been expressing his frustrations privately towards New York Attorney General Letitia James and Judge Arthur Engoron. James granted a 30-day grace period following Engoron's ruling.
Shortly before 6:30 a.m. Tuesday, Trump aired his grievances on social media. In a span of two hours, he posted eight times about the deadline, expressing his belief that he should not be required to pay up. He also voiced concerns about having to sell off valuable assets at low prices if he lost the appeal, questioning the logic behind such a scenario.
In one of his posts, the former president questioned the fairness of the situation, exclaiming, “Does that make sense? WITCH HUNT. ELECTION INTERFERENCE!” Trump's frustration and disbelief were evident in his messages shared with the public.
"This is all nonsense," stated Steven Cheung, a spokesperson for the Trump campaign, on Tuesday. He criticized the judgment made by Judge Arthur Engoron in New York as unjust and un-American. The campaign has filed a motion to challenge it, arguing that requiring a large bond goes against the principles of the Republic and weakens the rule of law.
While Trump's legal team waits for a decision from the appeals court on whether to pause the judgment or allow a smaller bond of $100 million, Trump has made it clear that he opposes filing for bankruptcy. According to a source familiar with the discussions, bankruptcy is currently the least likely option.
A general view of Trump Tower in New York City, U.S., October 1, 2023.
A general view of Trump Tower in New York City, U.S., October 1, 2023.
David 'Dee' Delgado/Reuters
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Trump may risk losing his New York properties due to his inability to secure a bond. However, his lawyers informed the New York appeals court that he has reached out to 30 underwriters for support. Trump himself mentioned on Truth Social that he believed it was nearly impossible for him to provide the required amount. Contrary to belief, potential underwriters are requesting cash for the bond, not properties, as clarified by Trump's legal team.
Engoron's ruling last month required Trump to pay $355 million in disgorgement, or "ill-gotten gains," in the case filed by James. The judge found Trump and his co-defendants, including his adult sons, guilty of fraud, conspiracy, and providing false financial statements and business records. They artificially inflated Trump's assets to secure better loan and insurance terms, resulting in a total debt of over $450 million with interest.
To prevent the state from enforcing the ruling, Trump must post a bond to be held in a separate account during the lengthy appellate process, which could last for years.
Trump recently posted a $91.6 million bond for his appeal in the Carroll defamation case. However, Gary Giulietti, an insurance broker who supported Trump during the civil fraud trial, mentioned that some major underwriters have policies preventing them from issuing bonds over $100 million.
Credit to CNN’s Kara Scannell and Jeremy Herb for their contribution to this report.
Editor's P/S:
The article highlights the mounting pressure faced by former President Donald Trump as he grapples with the looming deadline to secure a hefty bond for his appeal in a civil fraud case in New York. The inability to obtain an underwriting company for his $454 million bond has triggered panic within Trump's camp, with sources revealing his growing frustrations. The prospect of liquidating assets or declaring bankruptcy weighs heavily on his mind, and he has expressed concerns about the potential damage to his image.
Trump's desperation is evident in his social media posts, where he lambasts the situation as a "witch hunt" and questions the fairness of the ruling. His team's challenge to the judgment, citing concerns about the Republic and the rule of law, further underscores their unease. While the legal battle continues, the clock is ticking for Trump to secure the required funds or face the consequences of default, which could include losing his New York properties. The outcome of this case will not only impact Trump's personal finances but also his political legacy and future endeavors.
