Former President Donald Trump is facing a major financial challenge as he struggles to find a private company willing to guarantee the $464 million he has been ordered to pay in a New York civil fraud case. His lawyers have approached numerous bonding companies without success, citing the immense size of the bond as a “practical impossibility.”
The case stems from allegations that Mr. Trump falsely inflated assets to secure better loan deals, leading to a New York judge ordering him to pay the hefty penalty and imposing a three-year ban on him running businesses in the state. Despite a temporary pause on the business ban, Mr. Trump has been unable to secure a smaller bond amount to cover the fine.
Legal experts warn that Mr. Trump’s legal tactics might be running out as he continues to appeal the verdict. New York’s attorney general has vowed to seize his assets if he fails to pay the fraud judgment, which is accruing interest at a significant rate per day.
The former president’s financial situation is closely scrutinized, given his estimated net worth of $2.6 billion and reported $400 million in liquid assets. However, the mounting legal expenses, including an $83 million payout in a separate defamation case, are adding strain to his finances.
The unprecedented nature of Mr. Trump’s legal troubles has experts questioning the next steps in his case, particularly as traditional bonding companies are hesitant to issue a bond of such magnitude to an individual. The outcome remains uncertain, with Mr. Trump’s ability to meet the financial demands of the court hanging in the balance.