{"id":10875,"date":"2024-02-22T12:42:36","date_gmt":"2024-02-22T12:42:36","guid":{"rendered":"https:\/\/imsfund.com\/?p=10875"},"modified":"2024-02-22T12:42:36","modified_gmt":"2024-02-22T12:42:36","slug":"trump-faces-obstacles-to-securing-an-appeal-bond-in-fraud-case","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2024\/02\/22\/trump-faces-obstacles-to-securing-an-appeal-bond-in-fraud-case\/","title":{"rendered":"Trump faces obstacles to securing an appeal bond in fraud case"},"content":{"rendered":"


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Former U.S. President Donald Trump gestures on the day of a court hearing on charges of falsifying business records to cover up a hush money payment to a porn star before the 2016 election, in New York State Supreme Court in Manhattan, New York, on Feb. 15, 2024.<\/p>\n

Andrew Kelly | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Former President Donald Trump<\/a> is gearing up to fight a massive fine in the New York business fraud<\/a> case that threatens<\/a> to erase most of the cash<\/a> he says he has on hand.<\/p>\n

But first, he has to secure a bond \u00e2\u0080\u0094 and that might not be so easy.<\/p>\n

Trump\u00c2\u00a0on Friday\u00c2\u00a0was ordered to pay about $355 million in penalties<\/a>, plus more than $98 million in interest after a judge found the former president liable for fraud for manipulating financial statements given to lenders. Every day, the accruing interest adds $87,502 to Trump’s bill.<\/p>\n

Unless he wants to pay the entire penalty while his expected appeal is considered, Trump will need to post an appeal bond. This is typically up\u00c2\u00a0to 120% of the judgment plus the current interest.<\/p>\n

At that rate, Trump’s original ruling with interest would indicate he will need to secure a bond worth more than $540 million. But it’s unlikely that the real estate baron will be able to use his properties as collateral.<\/p>\n

It’s “not very attractive to take real estate as collateral,” said Neil Pedersen, owner of New York-based surety bond agency Pedersen & Sons.<\/p>\n

Trump could have to liquidate some assets to secure a bond, said Pedersen. The bond company will also charge a fee that could total millions of dollars.<\/p>\n

An appeal of Judge Arthur Engoron’s ruling could take years to play out.<\/p>\n<\/div>\n

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A flag supporting former U.S. President Donald Trump outside Trump Tower in New York on Oct. 1, 2023.<\/p>\n

Yuki Iwamura | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Another complicating factor: Trump’s status as a presidential front-runner.<\/p>\n

It’s an “unprecedented” situation for a potential bond company to commit to, Pedersen said.<\/p>\n

“No one’s ever had to enforce an indemnity agreement against what could very well be the next U.S. president,” he said.<\/p>\n

Trump has vowed to appeal Engoron’s ruling, which threatens not just his bottom line, but his entire persona as a mega-rich business genius, one that he has carefully cultivated for decades.<\/p>\n

But bond agents may have reservations about working with Trump, whose business practices and claims about his wealth have been successfully challenged in court.<\/p>\n

Appeal bonds are used to ensure that a person ordered to pay a judgment cannot misuse the courts to delay or avoid making that payment.<\/p>\n

“Whoever is going to bond [Trump] is committing that they’re going to make good on that judgment,” said New York business attorney David Slarskey. “Who’s going to do that?”<\/p>\n

Trump, who said in a deposition<\/a> last year that he had “substantially in excess of $400 million in cash,” could technically deposit the full judgment against him, plus interest, as he challenges the judgment. But his lawyer has already said that he will secure a bond.<\/p>\n

“We have to post the bond, which is the full amount and some,” Trump attorney Alina Habba told Fox News on Monday.<\/p>\n

“We will be prepared to do that,” she said.<\/p>\n

Habba said she expects to post a roughly $400 million bond within a 30-day window to file a notice of appeal, which begins after a court clerk enters Engoron’s final judgment.<\/p>\n

Engoron also barred Trump for three years from running a business in New York or applying for loans from financial institutions registered with the state.<\/p>\n

Habba also appeared to dismiss a question about whether Trump will have to sell off his New York real estate assets as his legal troubles mount.<\/p>\n

But Pedersen warned that doing so could cause its own “headache.”<\/p>\n

Those assets are not liquid, so if\u00c2\u00a0Trump\u00c2\u00a0loses the appeal, the process of converting them to cash could be difficult \u00e2\u0080\u0094 perhaps even more so in a case that was centered around disputes about the value of\u00c2\u00a0Trump’s properties.<\/p>\n

Habba did not immediately respond to questions from CNBC about the process of securing an appeal bond.<\/p>\n<\/div>\n

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Read more CNBC politics coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Engoron’s judgment in Manhattan Supreme Court came weeks after a jury in a separate civil case in New York federal court ordered Trump to pay\u00c2\u00a0$83.3 million<\/a>\u00c2\u00a0for defaming writer E. Jean Carroll. That’s on top of the $5 million<\/a> that Trump has already been ordered to pay in a separate defamation case brought by Carroll.<\/p>\n

After that case was adjudicated, the former president took the unusual step of setting aside a cash deposit of $5.6 million while he pursued an appeal.<\/p>\n

Trump critic and attorney George Conway suggested that Trump was unable to secure an appeal bond from a third party. Trump’s lawyers denied this, saying he merely wanted to avoid additional fees that would be charged by a bond company.<\/p>\n

But as Trump’s legal penalties soar past the half-billion-dollar mark, Slarskey and others<\/a> have predicted that Trump may soon declare bankruptcy<\/a>.<\/p>\n

Forbes estimated Trump’s net worth to be roughly $2.6 billion<\/a> as of February.<\/p>\n

Don’t miss these stories from CNBC PRO:<\/strong><\/em><\/p>\n<\/div>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Former U.S. President Donald Trump gestures on the day of a court hearing on charges of falsifying business records to cover up a hush money payment to a porn star before the 2016 election, in New York State Supreme Court in Manhattan, New York, on Feb. 15, 2024. Andrew Kelly | Reuters Former President Donald […]<\/p>\n","protected":false},"author":5,"featured_media":10876,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107375758-17084557412024-02-15t225557z_95320297_rc2x26aogkwp_rtrmadp_0_usa-trump-subversion.jpeg?v=1708550168&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-10875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=10875"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10875\/revisions"}],"predecessor-version":[{"id":10877,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10875\/revisions\/10877"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/10876"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=10875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=10875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=10875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}