Donald Trump Posts $175 Million Bond to Prevent Asset Seizure Amid NY Fraud Penalty Appeal

Donald Trump has posted a in his New York civil fraud case, which temporarily stops the collection of the $454 million debt he owes.

Donald Trump
Donald (Image source: Twitter)

The bond serves as a guarantee of payment if the judgment is upheld, and if Trump wins the appeal, he will not have to pay anything. The bond was posted after a New York appellate court reduced the required amount.

Before this, the New York Attorney General was preparing to collect the judgment by seizing Trump's properties. The bond was underwritten by Knight Specialty Insurance. And both cash and bonds were used as collateral. Trump is appealing a judge's finding that he lied about his wealth in financial statements.

The appeals court is set to hear arguments in September. Trump has also posted bonds and cash to cover other legal debts, including those related to a defamation case and a lawsuit against The New York Times.

Trump's lawyers told the appeals court that the underwriters insisted only on cash, stocks, or other liquid assets. But they are unwilling to take a mix of cash and real estate as collateral for more than 30 bonding companies worth more than $454 million.

“This is what we do at Knight Insurance, and we're happy to do this for anyone who needs a bond,” said Hankey, who is best known in the business world for making high-risk, high-interest loans to car buyers with flawed credit histories. Hankey told the AP he has never met or spoken with Trump.

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He is seeking a mistrial in some federal civil cases. In addition to the $175 million deposited in the New York lawsuit, Trump author E. Jean posted bonds and more than $97 million in cash to recoup the money owed to Carroll.

The jury found that he had sexually assaulted her in the 1990s. He gained notoriety when he went public with the allegations in 2019. He denied all the allegations.

Trump may generate cash in the future by selling his stock in his social media company, but there is a six-month lock-up period preventing insiders from selling their shares.

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