Donald Trump’s Legal Team Unable to Secure Bond for New York Attorney General’s $464 Million Civil Fraud Judgment
Former United States President Donald Trump’s legal team has reportedly approached over thirty potential insurance underwriters to secure a bond covering the massive judgment rendered against him in the New York Attorney General’s civil fraud case. However, despite their efforts, they have not been successful in finding a company willing to underwrite such a substantial bond, which is due at the end of this month.
The New York Attorney General’s Office obtained a judgment against Trump totaling over $464 million, comprised of a $454 million fine for Trump himself and an additional $10 million in disgorgement for his sons Donald Jr. and Eric. However, securing a bond of this magnitude has proven to be a significant challenge.
Trump’s legal team submitted an affidavit from Gary Giuletti, an insurance broker who testified on Trump’s behalf during the civil fraud trial. According to this affidavit, securing a bond for the entirety of the judgment is “a practical impossibility” due to its size.
Moreover, potential underwriters are requesting cash collateral to back the bond rather than offering security based on Trump’s properties. This poses a challenge for Trump, as his legal team argues that the value of his assets far outweighs the size of the judgment.
Trump’s lawyers have filed a request with the appeals court to delay the posting of the bond until Trump’s appeal of the case has been resolved. They maintain that Trump’s properties provide ample collateral for any potential judgment in the future and argue against the necessity of posting such a large bond upfront.
As this developing story unfolds, further updates will be provided.
Former President Donald Trump’s legal team has encountered significant hurdles in securing an insurance bond to cover a judgment against him totaling over $464 million in the New York Attorney General’s civil fraud case. Trump’s attorneys have reportedly approached thirty underwriters, but none have agreed to back a bond of such magnitude, which is due at the end of this month.
According to court documents, securing a bond for this sum is an insurmountable challenge for several reasons. First, the size of the judgment exceeds the amount typically covered by standard bonds, making it a unique case in the insurance world. Second, underwriters are seeking substantial collateral to back the bond, not Trump’s properties, which creates a logistical challenge for his legal team.
Trump himself was fined $454 million, while his sons Donald Jr. and Eric were ordered to pay an additional $10 million in disgorgement. However, the difficulty in obtaining a bond for this amount extends beyond the total fine. The legal team argues that Trump’s assets significantly exceed the value of the judgment, making the need for such a substantial bond questionable.
Despite these circumstances, Trump’s legal team has requested that the appeals court delay the posting of the bond until his appeal of the case is settled. They argue that the value of Trump’s properties, which exceed the judgment by a wide margin, can serve as sufficient collateral in the event of an adverse decision.
Trump’s legal team has also submitted an affidavit from Gary Giuletti, a seasoned insurance broker who previously testified on Trump’s behalf during the civil fraud trial. In this affidavit, Giuletti asserts that securing a bond for the entirety of the judgment is an unrealistic expectation due to its size and the practical limitations of the insurance industry.
As this situation unfolds, further updates will be provided regarding Trump’s efforts to secure an insurance bond for the massive civil fraud judgment against him.
