Trump’s $454 million fraud fine will be put on hold IF he pays $175million in 10 days, court rules
An appeals court in New York decided Monday to suspend the former president’s debt collection Donald Trump’s Civil fraud judgment of $454 million – if he raises $175 million within 10 days.
Doing so would halt collections and prevent the state from seizing his assets while he appeals.
The development, just the latest example of Trump pulling a legal rabbit out of the hat, came just before New York Attorney General Letitia James was expected to launch efforts to collect the judgment.
She has threatened to seize Trump property, which the former president called his “babies” on Monday.
In his comments immediately after the decision, Trump called Judge Arthur Engoron a “disgrace” and said, “This shouldn’t be happening.” He said the judge did New York state a “terrible disservice.”
“I deeply respect the decision of the Apellate Division and will deposit $175 million in cash, bonds or securities or whatever is needed within 10 days,” he said.
James released her own statement. “Donald Trump continues to be held accountable for his staggering fraud. The court has already established that he has been guilty of fraud for years to falsely increase his assets and unjustly enrich himself, his family and his organization. The $464 million judgment – plus interest – against Donald Trump and the other defendants still stands,” she said.
Earlier this week, Trump’s lawyers argued for a state appeals court to halt the collection, saying it was “a practical impossibility” to get an insurer to sign a bond for such a large amount.
The ruling was handed down by the state’s intermediate court of appeals, the Appellate Division of the state Court of Appeals, where Trump is fighting to overturn the case. a judge’s ruling on February 16 that he lied about his wealth while expanding the real estate empire that launched him to stardom and the presidency.
Stay: An appeals court has reduced the trial court’s judgment to $175 million and gives him 10 days to pay it or post bail
The five-judge panel ended what would have been a complex process in which James sought to impose liens on Trump properties or otherwise enforce forfeiture.
Trump blasted Judge Arthur Engoron on the news and said he would deposit the money or post the bond within the 10-day deadline before the appeals court.
“His credibility, and that of Letitia James, has been shattered. We will abide by the Appellate Division’s decision and post a bond, equivalent securities or cash,” Trump wrote on his Truth Social site.
“This also shows how ridiculous and outrageous Engoron’s original decision was, which was $450 million. I did nothing wrong, and New York should never be put in a position like this again. COMPANIES ARE RUNING, VIOLENT CRIME IS FLOURISHING, AND IT IS VERY IMPORTANT THAT THIS IS RESOLVED IN ITS ENTIRETY AS SOON AS POSSIBLE. THANK YOU!’
The news came as Trump was in a Manhattan courtroom for a critical hearing in the Stormy Daniels case.
James had already filed paperwork in Westchester County, New York, where Trump owns the Seven Springs estate and a golf course.
Trump’s lawyers have said in previous lawsuits that he was unable to obtain an endorsement for the higher amount, calling it a practical impossibility. They said Trump tried to contact 30 companies without success.
Trump claimed in an online post last week to have $500 million in cash, and said during a deposition at his fraud trial that he had $400 million.
The state appeals court’s decision came as AG Letitia James prepared to seize Trump’s property in the event he fails to pay a $454 million judgment.
Trump repeatedly attacked Judge Arthur Engoron on Monday
Two people with knowledge of Trump’s finances said Trump should be able to secure the bond within the 10-day period, the New York Times reported.
Trump would still have to comply with Judge Arthur Engoron’s order that his companies cooperate with a court-appointed monitor.
But the appeals court rejected Engoron’s order banning Trump from doing business in the state.
Trump’s lifeline in the fraud case came at the same time as Judge Juan Merchan expressed frustration with his lawyers in the Stormy Daniels case.
“I hear certain information and I hear your interpretation of it, and it is really different than my interpretation of it,” Judge Merchan told Trump’s lawyers. He said the case has “Honestly, it’s been going on for months.”
“You’re literally accusing the Manhattan district attorney’s office of prosecutorial misconduct and trying to make me complicit in it, and you don’t have a single quote to support that position?” he told Trump lawyer Todd Blanche.
Other victories in Trump’s legal battle include the Supreme Court ruling that his name appear on the ballot in Colorado, making arguments by the end of April in his Jan. 6 case that could further delay it, and the stunning developments in his Georgia election nullification case involving District Attorney Fani Willis and Special Prosecutor Nathan Wade.
One of his setbacks: having to pay $91 million while he appeals the defamation ruling in the E. Jean Carroll case.