Trump’s Civil Fraud Trial Bond Cut, ProPublica Report Suggests Misleading Court
Background
In a recent report, ProPublica suggests that former President Donald Trump’s claims of being unable to afford his civil fraud trial bond may have been misleading to the court. Trump’s legal team had cited the original $464 million bond requirement as exceedingly difficult to secure, claiming that they had been rejected by multiple firms in their attempts to raise the funds. However, it has now come to light that Trump had already received an offer from billionaire businessman Don Hankey to post the full amount.
An Offer from Don Hankey
According to ProPublica, Don Hankey had reached out to Trump’s representatives, expressing his willingness to post the entire bond amount using real estate as collateral. Hankey had deemed it to be a fairly straightforward bond to secure, as opposed to Trump’s team claiming widespread rejections from potential funding sources. Eventually, the court decided to reduce the bond to $175 million.
Potential Ethics Violation
The report raises questions about whether Trump’s legal team was aware of the negotiations between Hankey and Trump’s representatives. It remains uncertain if his lawyers failed to report Hankey’s offer to the court, potentially violating ethics rules in the process. Legal experts suggest such actions could be considered an ethics violation and a fraud on the court if they knowingly misrepresented the situation, but proving their awareness at the time can be challenging.
Possible Consequences
The New York State Bar Association has highlighted that attorneys who violate the law or fail to abide by the NY Rules of Professional Conduct face disciplinary actions, ranging from admonishment to the loss of their license to practice law. Lawyers familiar with the case believe that if Trump’s attorneys were aware of the negotiations during their appeal for a lower bond amount, it would likely be considered an ethics violation. Potential penalties for such violations include disciplinary measures leading up to a suspension from practice.
Responses from Trump’s Representatives
At the time of this report, neither the Trump campaign, lawyers representing the former president in his civil fraud case, nor representatives from Knight Specialty Insurance Company (who eventually posted the bond) have issued a comment in response to the allegations.
