Trump’s lawyers keep fighting $454M fraud appeal bond requirement
NEW YORK — Former President Donald Trump’s lawyers kept pressing an appellate court Thursday to excuse him from covering a $454 million fraud lawsuit judgment for now, saying he’d suffer “irreparable harm” before his appeal is decided.
The financial requirement is “patently unjust, unreasonable and unconstitutional,” one of the presumptive Republican presidential nominee’s lawyers, Clifford Robert, wrote in a letter to a New York appeals court.
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It’s the latest in a flurry of arguments and counterarguments that Trump’s attorneys and New York state lawyers are making ahead of Monday, when state Attorney General Letitia James can start taking steps to collect the massive sum — unless the appeals court intervenes.
James, a Democrat, said last month she was prepared to seek to seize some of Trump’s assets if he can’t pay, though it wasn’t clear how quickly that might unfold. In recent weeks, her office has filed formal notice of the judgment against Trump, a step that could later allow the state to move to collect.
James’ office has declined to comment on its plans.
Trump’s lawyers want the court to hold off collection, without requiring him to post a bond or otherwise cover the nine-figure judgment, while he appeals the outcome of his recent civil business fraud trial.
Judge Arthur Engoron ruled that Trump, his company and key executives deceived bankers and insurers by producing financial statements that hugely overstated his fortune. The defendants deny the claims.
The judge ordered Trump to pay $355 million in penalties, plus interest that already has pushed the total over $454 million and is growing daily. That doesn’t count money that some co-defendants were ordered to pay.
Appealing doesn’t, in itself, halt collection. But Trump would automatically get such a reprieve if he puts up money, assets or an appeal bond covering what he owes.
The presumptive Republican nominee’s lawyers said earlier this week that he couldn’t find anyone willing to issue a bond for the huge amount.
They added that underwriters insisted on cash, stocks or other liquid assets instead of real estate as collateral and wanted 120% of the judgment, or more than $557 million. Trump’s company would still need to have cash left over to run the business, his attorneys have noted.
