March 28th 2024.
In a recent civil fraud case against former President Donald Trump and his co-defendants, a New York State appeals court made a significant decision to reduce the bond amount from $464 million to $175 million. This ruling, handed down by a panel of state Appellate Division judges, who were all appointed by Democratic governors, has given Trump and his team 10 days to post the reduced bond amount.
Upon hearing the news, Trump expressed his respect for the decision and assured that he would quickly gather the necessary cash, bonds, or security to meet the deadline. As he left the courtroom in New York, he thanked the appellate division for their prompt action. Prior to this ruling, Trump was responsible for paying $454 million, which was the majority of the original fraud judgment. However, with additional interest accumulating at a rate of more than $111,000 per day, the amount had significantly increased.
On his social media platform, Truth Social, Trump had claimed to have close to $500 million in cash, which he planned to use for his 2024 presidential campaign. However, it was noted that he had not used any of his own money for his previous presidential campaigns in 2016 and 2020. Instead, he had relied on the idea of mortgaging or selling off his properties to fund his campaigns, citing the need to avoid selling at "Fire Sale prices."
According to court filings, Trump's legal team had faced difficulties in securing a bond as most companies require collateral of about 120% of the judgment amount. In this case, it would have been a staggering $557 million. Despite approaching 30 companies through four separate brokers, they were unable to negotiate with the world's largest insurance companies, who only accept cash or cash equivalents as collateral.
While this ruling may be seen as a win for the Trump team, it is considered a loss for the state Attorney General Letitia James' office as it halts their efforts to collect on the judgment. Trump's attorney, Alina Habba, took the opportunity to mock James on a Fox News show, claiming victory and challenging James to take back her previous statements about the case.
Habba has been vocal in her criticism of both James and Judge Arthur Engoron, who originally ordered Trump to pay $355 million before interest. The judge had ruled that Trump had conspired to lie about his net worth to obtain favorable treatment from banks and insurers. In response, Habba insisted that James had to "eat every single tweet" she had posted and even dared her to post online after the court's decision, eager to see what James had to say.
However, James did not give in to Habba's challenge as she was busy tweeting from Washington, D.C., defending access to Mifepristone, an FDA-approved drug used for abortions. In her tweet, she emphasized that Mifepristone is safe and effective and has been used by millions of people. She also reiterated her commitment to fighting for women's rights and their freedom to make choices about their own bodies.
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