New York AG Challenges Trump’s Assertion of Impossibility to Secure $464 Million Bond for Civil Fraud Case
The New York Attorney General Letitia James’ office has disputed Donald Trump’s claim that he cannot find an insurance company to support his $464 million bond in the civil fraud case, urging the state appeals court to disregard this argument.
AG’s Office: Defendants Had No Reason to Delay Raising Issues Regarding Bond
In a filing with the appeals court, James’ office stated, “Defendants here had no reason to wait for their reply to raise their allegations and arguments about the difficulty of obtaining a bond.” The filing went on to explain that Trump’s attempts to secure the bond had begun before his motion for stay was filed and even before the judgment was entered.
Trump’s Lawyers: 30 Insurance Companies Turned Down, Unwilling to Accept Real Estate as Collateral
Trump’s lawyers had stated on Monday that it was nearly impossible for Trump to secure a bond due to his being turned down by 30 insurance companies. They told the appeals court that insurers demanded cash or stock as collateral worth around half a billion dollars, which Trump could not provide.
AG’s Office: Trump Should Explain Negotiations with Insurance Companies or Pool Resources
The attorney general’s office, however, urged defendants to better explain the shortcomings in their negotiations with insurance companies or pool resources to underwrite the bond. They argued that defendants had not provided any documentary evidence regarding what real property they offered to sureties, on what terms it was offered, or why the sureties were unwilling to accept the assets.
Unreliable Sworn Statements from Trump’s Insurance Broker and Top Lawyer
The attorney general’s office criticized the sworn statements of Gary Giulietti, Trump’s insurance broker and a long-term friend, and Alan Garten, the top lawyer at the Trump Organization. They argued that these statements were unreliable due to Giulietti’s past friendship with Trump and Garten’s stake in the outcome.
Suggestion: Turn Properties Over to the Judge
The attorney general’s office concluded by suggesting that, if defendants were unable to provide an undertaking, they should have consented to having their real estate interests held by the Supreme Court to satisfy the judgment or pledged security in real estate holdings with sufficient value to secure payment of the entire judgment. This would help ensure that the court’s judgments could be executed efficiently and effectively.
Implications for Trump and the Ongoing Civil Fraud Case
The back-and-forth over the bond is just one aspect of the ongoing civil fraud case against Donald Trump and his organization, the Trump Organization. The case alleges that they engaged in a years-long scheme to defraud banks and tax authorities by manipulating property valuations. As the legal performance continues, the outcome of these negotiations with insurance companies could have significant implications for Trump’s financial situation and potential ability to pay damages if found liable in court.
Seeking a Fair, Transparent, and Efficient Judicial Process
Throughout the proceedings, both parties have emphasized their commitment to seeking a fair, transparent, and efficient judicial process. The attorney general’s office has made clear its intention to hold defendants accountable for any wrongdoing while ensuring that the legal process proceeds in a manner that respects the rule of law and the interests of all parties involved.
