New York Attorney General Letitia James has cautioned the New York appeals court that former President Donald Trump lacks sufficient cash to meet the $454 million fraud penalty imposed on him. This warning comes in response to a recent ruling by Judge Arthur Engoron, who mandated Trump and the Trump Organization to pay nearly $355 million for committing widespread fraud. The penalty increases by $112,000 in interest each day that Trump fails to fulfill the payment.
In an effort to delay the enforcement of penalties, Trump appealed to the appeals court on Wednesday, proposing to post a $100 million bond until the full appeals process concludes. Trump’s attorneys argued in a court filing that the “exorbitant and punitive amount of the Judgment” coupled with a “blanket prohibition on lending transactions” renders it impossible to secure and post a complete bond.
“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,” Trump’s attorneys wrote in a Wednesday court filing.
Responding to Trump’s plea, Letitia James asserted in a letter to the appeals court that Trump does not possess enough liquid cash. She disputed the notion that a partial bond or deposit would suffice, stating, “Defendants all but concede that Mr. Trump has insufficient liquid assets to satisfy the judgment; defendants would need ‘to raise capital’ to do so.”
Apart from the fraud penalty, Trump is also indebted to author E. Jean Carroll for $83.3 million, following a New York judge finding him liable for defaming her earlier in the month. Trump had previously been found liable for sexually abusing Carroll by a New York jury in a separate case. The ongoing legal battles and financial obligations underscore the complex legal challenges faced by the former president.
