A New York state appeals judge on Wednesday (February 28) refused to stay a $454 million civil fraud fine against Donald Trump while he appeals, rejecting the former president’s request to allow payments that only cover a request for a bond for a fraction of the fine owed.
New York State Intermediate Court of Appeals Judge Anil Singh ruled that Trump must pay a full bond to stop the execution of the sentence. But Singer also approved some of Trump’s demands, including a three-year suspension on his seeking loans from New York banks that could help him secure the necessary security deposits.
Earlier on Wednesday, Trump’s lawyers told an appeals court that Donald Trump was prepared to post only $100 million in bond, citing a loan ban in the February 16 ruling that prevented him from receiving the full bond.
Trump’s lawyers proposed in court filings a smaller bond while seeking an appeals court order blocking New York Attorney General Letitia James’ office from enforcing the sentence while the appeal proceeds. Singer ruled that Trump was required to post the full bond, which would automatically suspend the imposition of fines.
The Republican presidential candidate and his co-defendants collectively owe the state of New York more than $465 million. They have until March 25 to receive a stay of execution, a legal mechanism that suspends the imposition of fines while they are appealed, or they will be forced to pay fines or risk having some of their assets seized.
“The verdict is excessive and punitive,” Trump’s attorneys Clifford Robert, Alina Habba, and Michael Farina wrote in the request. Combined with a blanket prohibition on the illegal and unconstitutional nature of loan transactions, it will result in the inability to obtain and post full security deposits.”
James’ office opposed Trump’s plan, saying his attorneys were effectively admitting that he “does not have sufficient liquid assets.” to fulfill the judgment”.
“This is exactly the situation where a full bond or deposit is required,” Senior Assistant Deputy Attorney General Dennis Fan wrote. If the verdict is upheld, Trump’s proposal would put James’ office and the agency at risk, he said. The state “faces a huge gap.”
“The prevailing plaintiff is entitled to damages, and the defendants have never demonstrated that Mr. Trump’s liquid assets can satisfy the full amount of the judgment.”
Fan wrote. James, a Democrat, said she would not be able to pay the damages if Donald Trump was unable to pay them. Will seek to seize some of Trump’s assets.
Judge Arthur Engoron held that Trump, his companies, and executives—including his sons Eric Trump and Donald Trump Jr.—conspired for years to defraud banks and insurance companies by inflating his wealth on financial statements used to secure loans and conduct transactions.
Other penalties include a judge placing severe restrictions on the Donald Trump Organization’s ability to conduct business. Documents for the formal verdict were submitted on February 23. That gives Trump a 30-day window to pay the fine or appeal and seek a stay of execution.
Donald Trump appealed on Monday. His lawyers asked the Appellate Division of the state’s trial court to rule on whether Ngolon “committed errors of law and/or fact” and whether he abused his discretion or “exceeded” his jurisdiction.
Trump’s lawyers argued that Trump’s vast real estate holdings and the oversight powers under the Ngolon ruling—including oversight of his companies by independent monitors— “alone are sufficient to adequately ensure that any Judgment secured.”
They said the $100 million deposit “simply serves as further security.”
Donald Trump insists he is worth billions and testified last year that he had about $400 million in cash in addition to properties and other investments.
Trump faces a total of at least $543.4 million in personal legal liability from the Ngolon ruling and two other civil court judgments last year.
In January, a jury ordered Donald Trump to pay $83.3 million to author E. Jean Carroll over her 2019 accusation that Trump had an affair at a Manhattan department store in the 1990s. She was vilified by Trump after the company sexually assaulted her. In a related trial last year, a jury awarded Carroll $5 million.
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