Appellate judge refuses to halt Trump's $454 million fraud penalty while he appeals
A New York appellate judge on Wednesday refused to halt collection of Donald Trump맥스카지노s $454 million civil fraud penalty while he appeals, leaving the former president less than a month to pay the staggering sum or secure a bond covering the full amount he owes.
Video above: What Trump's New York civil fraud verdict means
Judge Anil Singh of the state맥스카지노s mid-level appeals court rejected Trump's offer of a $100 million bond, though he did give Trump leeway that could help him secure the necessary bond before New York Attorney General Letitia James seeks to enforce the judgment starting March 25.
Singh granted a stay pausing part of Judge Arthur Engoron맥스카지노s Feb. 16 verdict that barred Trump, his company and co-defendants from borrowing money from New York financial institutions. The Republican presidential front-runner맥스카지노s lawyers had told the appellate court earlier Wednesday that the lending ban had made it impossible for him to secure a bond for the full amount.
Trump맥스카지노s lawyers warned he may need to sell some properties to cover the penalty and would have no way of getting them back if he is successful in his appeal. State lawyers said those disclosures suggested Trump 맥스카지노 who has more than a half-billion dollars in pending court debt 맥스카지노 was having trouble coming up with enough cash to foot the bill. The penalty is increasing by nearly $112,000 each day because of interest and will eclipse $455 million on Saturday.
Trump맥스카지노s lawyers proposed their smaller bond amount in court papers asking the appellate court for an order preventing James맥스카지노 office from enforcing the judgment while his appeal plays out. Singh, sitting in the Appellate Division of the state맥스카지노s trial court, ruled after an emergency hearing Wednesday.
Singh's decision is temporary. A five-judge appellate panel will consider Trump맥스카지노s request on an expedited basis, with a ruling expected in a few weeks. State lawyers must submit paperwork by March 11. Trump's lawyers have until March 18 to respond.
In all, Trump and his co-defendants owe more than $465 million to the state. They have until March 25 to secure a stay 맥스카지노 a legal mechanism pausing collection while he appeals the underlying verdict 맥스카지노 before they are forced to pay the penalty or risk having assets seized. Posting a bond in the full amount would trigger an automatic stay.
맥스카지노The exorbitant and punitive amount of the judgment coupled with an unlawful and unconstitutional blanket prohibition on lending transactions would make it impossible to secure and post a complete bond,맥스카지노 Trump lawyers Clifford Robert, Alina Habba and Michael Farina wrote in court papers detailing the $100 million bond offer.
James' office opposed Trump's plan, saying his lawyers have all but conceded he has 맥스카지노insufficient liquid assets to satisfy the judgment.맥스카지노
맥스카지노These are precisely the circumstances for which a full bond or deposit is necessary,맥스카지노 Senior Assistant Solicitor General Dennis Fan wrote, saying Trump's offer would leave James' office and the state 맥스카지노with substantial shortfalls맥스카지노 if the verdict is upheld.
"A prevailing plaintiff is entitled to have her award secured, and defendants have never demonstrated that Mr. Trump맥스카지노s liquid assets could satisfy the full amount of the judgment," Fan wrote.
James, a Democrat, has said that she will seek to seize some of Trump's assets if he's unable to pay the judgment.
Engoron found that Trump, his company and top executives, including his sons Eric and Donald Trump Jr., schemed for years to deceive banks and insurers by inflating his wealth on financial statements used to secure loans and make deals.
Paperwork making the judgment official was filed on Feb. 23. That started a 30-day window for Trump to pay up or file an appeal and seek a stay.
Also Wednesday, white powder was found in an envelope addressed to Engoron at his Manhattan courthouse. Officials said preliminary testing showed it was negative for hazardous substances and no injuries were reported.
Trump filed his appeal on Monday. In their notices of appeal, his lawyers said they want the appellate court to decide whether Engoron 맥스카지노committed errors of law and/or fact맥스카지노 and whether he abused his discretion or 맥스카지노acted in excess맥스카지노 of his jurisdiction.
Trump wasn맥스카지노t required to pay his penalty or post a bond in order to appeal, and filing the appeal did not automatically halt enforcement of the judgment.
Trump would receive an automatic stay if he were to put up money, assets or an appeal bond covering what he owes. He also had the option to ask the appeals court to grant a stay with a bond for a lower amount 맥스카지노 a gambit rejected Wednesday.
Trump's lawyers argued that his vast real estate assets and oversight mandated by Engoron's ruling, including supervision of his company by an independent monitor, 맥스카지노would alone be sufficient to adequately secure any judgment affirmed.맥스카지노
The $100 million bond, they said, 맥스카지노would simply serve as further security.맥스카지노
Trump맥스카지노s lawyers did not ask to pause the monitor맥스카지노s oversight, but Singh did halt some other sanctions affecting the Trump Organization, at least temporarily.
The appellate judge paused Engoron's two-year ban on Eric and Donald Trump Jr. holding executive positions in New York corporations, meaning they can continue running the company. He also paused a similar three-year ban that applied to Trump, but said the company must move forward with hiring an independent compliance director to ensure it follows financial reporting obligations and rules.
Trump maintains that he is worth several billion dollars and testified last year that he had about $400 million in cash, in addition to properties and other investments, but his legal bills are piling up.
In all, Trump has at least $543.4 million in personal legal liabilities from Engoron's ruling and two other civil court judgments in the last year.
In January, a jury ordered Trump to pay $83.3 million to writer E. Jean Carroll for defaming her after she accused him in 2019 of sexually assaulting her in the 1990s. Trump was also ordered to pay Carroll $5 million a jury awarded Carroll in a related trial last year. He denies the allegations.