Former President Donald Trump has been ordered to pay $454 million in a civil fraud verdict, according to an appeals court judge. The judge, Associate Justice Anil Singh, also lifted the ban on Trump’s ability to obtain loans from New York regulated financial institutions. This decision could potentially allow him to access the equity in his assets to cover the full bond amount.
However, Singh denied Trump’s request to delay his obligation to post the $454 million bond until his appeals of the civil fraud ruling are over. The judge stated that once the parties file briefs by March 18, a panel will evaluate Trump’s motion and return a decision by the end of March. No additional oral arguments are scheduled before the judges render their decision.
The clock is ticking for Trump to come up with the judgment as the 30-day period began on February 23. He will need to post the bond around March 25, which coincides with the start of jury selection for his criminal trial on charges related to a scheme to cover up a hush money payment made before the 2016 presidential election. Trump has pleaded not guilty to the charges.
While Trump’s attorneys had offered to post a $100 million bond, about one-fourth of the amount owed, the New York attorney general’s office opposed the offer and insisted on the full amount being posted. Trump’s lawyers argued that they cannot access the capital market to raise money due to the ban on obtaining loans and without a stay, they would likely be forced to sell properties under “exigent circumstances.”
The ruling also affects Donald Trump Jr. and Eric Trump, who can continue running the family company but will each have to post over $4 million or secure a bond in that amount to pursue their own appeals.
While this decision potentially gives Trump another avenue to raise cash, he still needs to find a lender willing to extend a substantial amount of money, even if backed by his properties. If he decides to secure a loan, his lawyers estimate that he would need to raise more than $550 million, as bond underwriters charge about 120% of the judgment and often require cash and other assets as collateral.
The urgency of the situation is evident in light of the punitive and exorbitant disgorgement awarded against Trump, the impact of the injunctive relief on lawful businesses, and the attorney general’s threats to seize Trump’s real property to satisfy the judgment, according to his lawyers.
The appellate judge maintained the lower court ruling that an independent monitor, who has been in place at the Trump Organization since 2022, will continue in the position for an additional three years. However, Trump’s request to postpone the installation of an independent compliance director was denied.
The New York attorney general opposed granting Trump any relief, arguing that he can automatically stay the judgment by securing an appeal bond. The attorney general also stated that Trump’s legal team had not notified them or the court of any effort to obtain a bond.
If Trump fails to post a bond or pay the judgment, the attorney general’s office warned that they will be forced to expend substantial resources to execute the judgment on his real property and other assets. Additionally, there are concerns about collecting the nearly $460 million judgment in this case due to Trump’s outstanding $83.3 million judgment in a separate defamation case.
As this story continues to develop, it remains to be seen how Trump will navigate the financial obligations and legal challenges he currently faces. The coming weeks will be crucial in determining the outcome of both the civil fraud verdict and the criminal trial, further shaping the future of the former president.
