Donald Trump is unable to make $464 million bond in civil fraud case, his lawyers tell court

By Kara Scannell and Jeremy Herb | CNN

Former President Donald Trump can’t find an insurance company to underwrite his bond to cover the massive judgment against him in the New York attorney general’s civil fraud case, his lawyers told a New York appeals court.

Trump’s attorneys said he has approached 30 underwriters to back the bond, which is due by the end of this month.

“The amount of the judgment, with interest, exceeds $464 million, and very few bonding companies will consider a bond of anything approaching that magnitude,” Trump’s lawyers wrote. (Trump himself was ordered to pay $454 million; the $464 million includes the disgorgement for his adult sons Don Jr. and Eric.)

An insurance broker, Gary Giulietti, who testified for Trump during the civil fraud trial, signed an affidavit stating that securing a bond in the full amount “is a practical impossibility.”

Potential underwriters are seeking cash to back the bond, not properties, according to Trump’s lawyers.

Trump’s lawyers have asked the appeals court to delay posting the bond until his appeal of the case is over, arguing that the value of Trump’s properties far exceed the judgment. If the appeals court rules against him, Trump asked the court to delay his posting the bond until his appeal to New York’s highest court is heard.

Last month, Trump was ordered to pay $355 million in disgorgement, or “ill-gotten gains,” by New York Judge Arthur Engoron in a civil fraud case brought by New York Attorney General Letitia James. Engoron wrote in his 93-page decision that Trump and his co-defendants – including his adult sons – were liable for fraud, conspiracy and issuing false financial statements and false business records, finding that the defendants fraudulently inflated the value of Trump’s assets to obtain more favorable loan and insurance rates.

The amount Trump owed surpassed $450 million with interest included.

Trump is appealing the ruling, but in order to stop the state from enforcing the judgment, Trump has to post a bond to be held in an account pending the appellate process, which could take years to litigate.