Letitia James Fires Back After Donald Trump's Bond Reduction

After an appeals court ruled on Monday that Donald Trump could proceed with a much lower amount than the $454 million penalty against him in his civil fraud case, New York Attorney General Letitia James fired back at the former president.

"Donald Trump is still facing accountability for his staggering fraud. The court has already found that he engaged in years of fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization. The $464 million judgment – plus interest – against Donald Trump and the other defendants still stands," James said in a statement.

Context:

Last month, Judge Arthur Engoron ruled in favor of James' lawsuit against Trump, his sons, Eric Trump and Donald Trump Jr., and The Trump Organization over allegations that the former president inflated the value of his properties and his own net worth by billions of dollars on financial statements provided to banks and insurers to make deals and secure loans. The former president, who maintains his innocence, was ordered to pay over $400 million in penalties and has been barred from conducting business in New York for three years.

In an effort to pursue an appeal, the former president was seeking a bond of $464 million to cover his fines and the disgorgement for his sons. Although Trump can appeal the ruling against him without a bond or paying the cash, the former president would be required to post a bond of slightly more than the amount of the penalty against him to stop the collection of his assets.

Trump was required to post the bond amount by Monday to stop James from collecting his assets and properties.

What We Know:

Last week, Trump's lawyers announced that they were unable to come up with the bond amount, saying, "Despite scouring the market, we have been unsuccessful in our effort to obtain a bond for the Judgment Amount for Defendants for the simple reason that obtaining an appeal bond for $464 million is a practical impossibility under the circumstances presented."

On Monday, a New York appeals court gave Trump 10 more days to post a $175 million bond and satisfy the judgment in his New York civil fraud case, a much smaller total than initially required.

In response, James said, "Trump is still facing accountability for his staggering fraud."

Views:

Following the ruling, Trump announced on Monday his intention to pay the appeal bond.

"We will abide by the decision of the Appellate Division, and post either a bond, equivalent securities, or cash," he wrote on Truth Social, his social media platform.

Newsweek has reached out to Trump's spokesperson and James' office via email for comment.

MSNBC legal analyst Lisa Rubin on Monday pointed towards a clause in the ruling stating that the court denied Trump's motion to stay the provision of the judgment, adding that this matters due to the former president's legal team previously noting the importance of that provision.

"Yes, Trump got his bond in the civil fraud case reduced to $175 million. But guess what? The court denied his motion to stay the provision of the judgment forbidding him from borrowing from financial institutions registered or chartered in NY state. That matters because his legal team previously told a judge on the panel that staying that provision was integral to his ability to obtain a bond. And without a stay of that provision, will Trump have to post his own cash within the next 10 days?" she asked.

What's Next?

Earlier this month, Trump posted a similarly-sized bond of $91.6 million in an appeal against the E. Jean Carroll defamation case suggesting Trump could post this new bond.

If Trump cannot supply the bond, he could see his bank accounts frozen and properties seized. James' office would not immediately begin seizing properties, but would likely take steps to free bank accounts to deliver the cash.

James could then seize properties to come up with the cash. James has already filed court filings in Westchester County where the former president owns the 140-acre Trump National Golf Club Westchester and Seven Springs estate, suggesting she is preparing to take control of these assets.

Update 03/25/24, 12:46 p.m. ET: This article was updated with additional information.

Update 03/25/24, 1:23 p.m. ET: This article was updated with additional information.

Update 03/25/24, 1:37 p.m. ET: This article was updated with additional information.