THE 45th PRESIDENT OF THE UNITED STATES is reportedly insolvent if you are to believe the loathsome mainstream media. This is because of an astounding judgment , amounting to $454.2 million, against President Trump arising out of the so-called ‘civil fraud case’ in New York, along with the nine percent annualized interest rate of over $111,000 per day in interest until it is paid in full. The alleged ‘fraud’ Trump committed was possibly overvaluing his assets, including Mar-a-Lago, though the court clearly undervalued, showing the range of opinion in valuations.
Also a matter of opinion is whether and to what extent this ‘over-valuation’ harmed anyone: Trump’s lenders said unequivocally no, but this was Judge Arthur Engeron, who ruled on the non-jury civil case, prosecuted by state A.G. Letitia James back in 2022, so the outcome was preordained.
Trump can pay cash or post an appeals bond in order to appeal that highly unprecedented and disturbing case. He was given 30 days to do so, lest James seize and forfeit Trump’s assets. The Complaint against Trump and his co-defendants is here.
On Monday, Trump’s attorneys moved the state appeals court to use its discretion and stay the judgment pending appeal based on the apparent fact that securing a bond of that size is a “practical impossibility,” and providing the court with a supporting memorandum of law, here. Alternatively, he’d provide a $100 million bond. (Rejected.)
Given Trump was also barred from running his New York businesses for three years as an additional penalty, it is hardly a wonder he can’t (or won’t) pay up in full. His lawyers say the 30 bonding companies consulted won’t contemplate bonds of that size and don’t accept real estate, where most of Trump’s wealth lies, as collateral, and if he can’t operate his real estate, he is short on liquid assets when he needs to come up with $557 million in marketable securities and cash. And bonding companies may be afraid of the association, too.
Trump has already posted a $91.6 million bond, fully collateralized, prior to appealing the bogus E. Jean Carroll case. In 2022, he posted a $200,000 bond in the Fulton County, GA ‘racketeering case.’ There may be others I’m overlooking, too.
Forbes has previously estimated Trump’s net worth to be between $2.5 billion in 2020-21 and $4.5 billion in 2015, prior to his running for president and prior to the pandemic.
Most fair-minded Americans should have a disconnect when their states/cities have ‘no bail’ and ‘free counsel’ for violent criminals and illegal aliens, but demand otherwise law-abiding citizens to have to pony up big bucks, in advance, simply to appeal a civil case.
Reasonable bail and right to counsel are guaranteed to criminal defendants by the Constitution, but there are troublesome implications here. It might be okay to hold someone liable for pecuniary damages or fines in civil matters, but they shouldn’t be excessive and in exceed actual damages or costs caused by their error(s) under the Eighth Amendment.
Like bail, a bond should be commensurate with the transgression and not a pay-for-play payoff or discriminatory tax. It cannot constitute cruel and unusual punishment.
For Trump, this case could not only be calamitous to his business, which provides services and employment to others, but a real wake-up call to other wealthy entrepreneurs in the state who don’t want the wrath of government beheading their brainchildren.
Be careful what you wish for, New York!