A New York appeals court ruled on Monday to reduce the staggering $464 million civil fraud penalty against former President Donald Trump to a comparatively smaller $175 million, preventing a possible “fire sale” of the Republican frontrunner’s real estate holdings ahead of the payment deadline. According to the decision from the five-judge panel, the former president has an additional 10 days to post the bond before New York Attorney General Letitia James can begin seizing his assets to cover the payment.
The original amount, which stems from Judge Arthur Engoron’s verdict finding Trump guilty of overstating his net worth and misleading lenders, would have required Trump to put up around $550 million, or 120 percent of the payment, as collateral to a bond company.
As Valuetainment previously reported, the former president’s attorneys argued that securing this amount was “a practical impossibility” as bond companies do not usually accept real estate as collateral.
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Attempts to negotiate with over 30 surety companies were unsuccessful, meaning Trump would have needed upwards of $1 billion in cash to cover the payment and keep the Trump Organization solvent at the same time. At the time, Trump claimed to have just $500 million in cash on hand “through hard work, talent, and luck.”
The deadline for the bond payment was scheduled for end-of-day on Monday, and Attorney General James was prepared to begin seizing Trump’s real estate assets to cover the judgment. However, in light of the reduced amount, Trump has promised to “abide” by the decision and put up the $175 million.
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The announcement of the latest appellate court ruling—the fifth time an element of Engoron’s verdict has been overruled—came as Trump arrived in a separate Manhattan court in connection with District Attorney Alvin Bragg’s civil case charging him with falsifying business records and making hush money payments to porn star Stormy Daniels. Hearings for the 34-count case, considered the weakest of the criminal indictments against Trump, were previously delayed until April, but Trump’s legal team filed for an additional extension on Monday pending a review of new evidence.
Outside the courtroom, Trump confirmed to reporters that the $175 million collateral payment will be posted in cash.
Trump says his collateral for the $175 million bond is "cash." pic.twitter.com/Pl3W3tPQYd
“I greatly respect the decision of the Appellate Division, and I’ll post either $175 million in cash or bonds or security or whatever is necessary very quickly within the 10 days, and I thank the Appellate Division for acting quickly,” Trump later said.
The full appeals court ruling can be read below:
NY-Appeals-Court-Lowers-Trumps-BondDownload
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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