MANHATTAN (CN) — The New York Attorney General’s Office told an appellate court on Monday that there would be substantial risks to staying the enforcement of former President Donald Trump’s hefty civil fraud judgment.
Trump is on the hook for more than $454 million, a sum that increases with every passing day due to interest, after New York Supreme Court Justice Arthur Engoron found him liable for civil fraud last month. As it stands, the judgment will become enforceable on March 25 — coincidentally, the same day that Trump’s criminal trial is set to start.
The former president was quick to appeal Engoron’s ruling, claiming that the court “abused its discretion, and/or acted in excess of its jurisdiction.” Trump asked that the financial penalties be waived until that appeal is properly heard, and he doesn’t want to post the customary full bond amount to do so.
Letting Trump have his way would be a risky move, the attorney general’s office claimed in a Monday court filing.
“These are substantial risks here, where defendants’ approach would leave OAG with a largely unsecured judgment pending appeal,” New York Attorney General Letitia James claims. “Defendants have never demonstrated that Mr. Trump’s liquid assets — which may fluctuate over time — will be enough to satisfy the full amount of this judgment following appeal.”
James brought the case against Trump in 2022, claiming that the former president lied about the value of his assets on yearly financial statements to short lenders in various business transactions.
Following a 10-week trial, Engoron issued his scathing decision, finding that Trump engaged in frauds that “shock the conscience.”
Since filing his appeal of Engoron’s ruling, Trump has already failed to get an interim stay on enforcement of the judgment. He offered to post a $100 million bond, a far cry from the more than $500 million he would likely owe to stay a judgment of this size.
Trump claimed that posting a standard bond in this case would be “impossible,” given the scale of the penalties.
“The judgment orders unprecedented and punitive disgorgement of nearly $460 million and overbroad permanent injunctive relief against appellants in the absence of legal authority or factual support,” Trump argued in a court document last month.
Still, New York Supreme Court Associate Justice Anil Singh shot him down. Singh did pause other aspects of the judgment against Trump, including the three-year bans on running his businesses and taking out bank loans. But a full appellate panel is expected to make a final ruling on Trump’s judgment status next week.
James is urging the panel to require Trump to pay the full bond amount.
“There is significant risk that absent a full bond or deposit, defendants will attempt to evade enforcement of the judgment or to make enforcement more difficult after the appeal,” she argued.
James added that her office would be “highly prejudiced and likely forced to expend substantial public resources” to get Trump to pay, should the panel decide to stay the judgment.
Trump posted a similar, but smaller, bond earlier last week to stay the enforcement of the defamation ruling against him in a case brought by E. Jean Carroll. Carroll, a former Elle Magazine advice columnist, won an $83.3 million judgment against Trump after a jury found that the former president defamed her.
On Friday, Trump posted that $91.63 million bond to keep him from having to pay Carroll as his appeal plays out. Should it fail, however, then the cash will be released to Carroll.
It remains to be seen as to whether Trump will be able to secure a bond big enough to cover his civil fraud judgment. For each day it goes unpaid, he racks up an additional more than $110,000 in interest.
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