Donald Trump has lost a bid to pause a $454.2 million civil fraud judgment against him for overstating his net worth and real estate values to dupe lenders. The decision by Associate Justice Anil Singh of the New York Appellate Division must be affirmed by a full panel of the mid-level state appeals court. Trump’s lawyers said he is unable to post a bond for the full amount of the judgment while he appeals and wants instead to secure a $100 million bond. A bonding company would be on the hook for any payout if Trump loses his appeal and proves unable to pay.
New York Attorney General Letitia James sued Trump, the Trump Organization, and other defendants in 2022 in state court in Manhattan, accusing them of falsifying the values of Trump’s properties to obtain better terms from lenders and insurers. Trump’s lawyers said a stay of Engoron’s decision was needed because Trump would suffer “irreparable harm” if James were free to sell his real estate assets to raise capital to pay the judgment. They also said the “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.”
Singh’s decision means Trump may now apply for a loan to help post a bond. James opposed a stay, calling it “especially inappropriate” given the defendants “all but concede” that Trump does not have enough liquid assets to satisfy the judgment. Both sides are expected to submit more written arguments in the coming weeks, and a decision could come after March 18.
