Former President Donald Trump faces difficulties in securing an insurance bond to cover the substantial judgment against him in the New York attorney general's civil fraud case. According to his lawyers, Trump has approached approximately 30 underwriters to back the bond, but the task has proven challenging due to the magnitude of the judgment.
The judgment, totaling over $464 million with interest, stems from a civil fraud case brought by New York Attorney General Letitia James. In the ruling, Trump and his adult sons were found liable for fraud, conspiracy, and issuing false financial statements and records. The defendants were accused of inflating the value of Trump's assets to obtain more favorable loan and insurance rates.
Trump's legal team has encountered obstacles in securing the bond, with potential underwriters reportedly seeking cash rather than properties to back the bond. Gary Giulietti, Trump's insurance broker, testified that securing a bond in the full amount is a "practical impossibility." He noted that some of the largest insurance companies have internal policies limiting them from underwriting bonds exceeding $100 million, and none are comfortable accepting real estate as collateral.
As Trump appeals the ruling, he is required to post a bond to prevent the state from enforcing the judgment. However, the challenge lies in the substantial amount required, with estimates exceeding $550 million when including fees and interest. Alan Garten, the top legal officer of the Trump Organization, highlighted the lack of underwriters willing to accept real estate as a "major obstacle" in securing the bond.
Despite efforts to delay posting the bond until the conclusion of the appeal process, the situation remains uncertain for Trump as he navigates the legal proceedings surrounding the civil fraud case.
While Trump's appeal is ongoing, the saga underscores the complexities and challenges involved in navigating high-stakes legal battles, particularly concerning financial judgments of this magnitude.