Donald Trump can’t find a private company willing to guarantee the $464 million (£365 million) he’s been told to pay in a New York civil fraud case.
The ex-president has to either pay the whole sum in cash or get a bond to keep his appeal going.
Trump mentioned that getting such a big bond is nearly impossible.
He might have to sell off some of his real estate properties if he doesn’t pay.
A bonding company could guarantee the full amount to the New York court for a fee.
If Trump loses his appeal and can’t pay, the bonding company would have to cover the amount.
Trump stated that the bond required is “impossible” for any company, even his successful one.
According to his lawyers, Trump’s team spent a lot of time negotiating with a big insurance company. However, they found that very few bonding companies are willing to consider such a large bond.
The lawyers said they tried 30 companies but couldn’t find one.
Trump’s two eldest sons also have to pay millions in the case.
Besides ordering Trump to pay, Judge Arthur Engoron banned him from running any businesses in New York for three years. This was because the judge found that Trump had falsely inflated assets to get better loan deals.
A judge put Trump’s business ban on hold last month but refused his request for a smaller bond amount, $100 million, to cover the fine.
In the latest filing, Trump’s lawyers included a statement from the president of a private insurance company, who said that bonds of this size are extremely rare.
The lawyers also mentioned that bonds of this size are usually only given to the biggest public companies in the world, not to individuals or private businesses.
Former federal prosecutor Diana Florence said it’s hard to know what’s next for Trump because his legal situation is unprecedented. She noted that such hefty penalties are typically imposed on large companies.
Florence explained that Trump’s legal team has been stalling as he appeals the verdict, but now it seems like he’s running out of options.
“He’s in danger of having his assets seized by the Attorney General if he doesn’t pay up,” Florence added.
In simpler terms, the lawyers said it’s very rare for someone like Trump to get a bond this big. Florence, a former prosecutor, thinks Trump is running out of ways to delay the legal process. If he doesn’t pay, his assets could be taken by the Attorney General.
Interest on the penalty is adding up to at least $112,000 every day until Trump pays.
His lawyers mentioned that bond companies won’t accept things like real estate as collateral for the bond, only cash or easily sellable investments.
According to Forbes, Trump’s net worth is around $2.6 billion. He said last year that he had $400 million in cash and other quick-to-sell assets.
The $464 million judgment isn’t his only financial concern. He was told to pay $83 million in January for losing a defamation case to E Jean Carroll, a woman he was found to have sexually abused. He’s already put up a bond for that case.
On Monday, Trump had another legal setback in one of the four criminal cases he’s facing.
A New York judge rejected the former president’s attempt to stop two important witnesses from testifying in the case where he’s accused of hiding a payment to keep someone quiet.
Judge Juan Merchan ruled that Michael Cohen, Trump’s ex-lawyer, and Stormy Daniels, an adult film star, can testify in the trial, which might start in April.