Former President Donald Trump is facing challenges in finding an insurance company to underwrite his bond to cover the massive judgment against him in the New York attorney general’s civil fraud case. Trump’s lawyers have approached 30 underwriters for the bond, which is due by the end of the month. However, the judgment against Trump, including interest, exceeds $464 million, making it difficult to find a company to back the bond.
During a hearing, an insurance broker testified that securing a bond in the full amount is practically impossible. Potential underwriters are requesting cash to back the bond, rather than properties. Trump’s legal team has requested the appeals court to delay posting the bond until his appeal of the case is complete. Trump himself has argued that posting the bond is practically impossible and unconstitutional.
In the civil fraud case brought by New York Attorney General Letitia James, Trump was recently ordered to pay $355 million in disgorgement. He is appealing the ruling and must post a bond to prevent the state from enforcing the judgment. However, some of the largest underwriters have internal policies that prevent them from securing a bond exceeding $100 million. Obtaining an appeal bond for over $464 million is deemed unfeasible under the current circumstances.
In response to the size of the fraud judgment, Trump campaign spokesman Steven Cheung criticized it as an abuse of the law that undermines the rule of law in New York. The situation highlights the ongoing legal challenges faced by the former president and the complexities of securing financial backing for legal proceedings of this magnitude. The uncertainty surrounding the insurance coverage for the bond adds another layer of complexity to Trump’s legal battles.
