Former President Donald Trump is facing a major hurdle in his legal battle as he struggles to find an insurance company willing to underwrite his bond to cover a massive judgment against him in the New York attorney general’s civil fraud case. Trump’s lawyers revealed that he has approached 30 underwriters, but none are willing to back the bond, which exceeds $464 million with interest.
The judgment stems from a civil fraud case brought by New York Attorney General Letitia James, in which Trump was ordered to pay $454 million, with the total amount including disgorgement for his adult sons Don Jr. and Eric. Trump’s legal team has argued that the value of his properties far exceeds the judgment and have requested the appeals court to delay posting the bond until his appeal is resolved.
Despite Trump’s claims that the bond size is “unConstitutional, un-American, unprecedented, and practically impossible,” insurance broker Gary Giulietti testified that securing a bond in the full amount is a practical impossibility. Some of the largest underwriters have internal policies limiting them from securing a bond exceeding $100 million, and they are only comfortable accepting cash or stock, not real estate.
With fees and interest included, Trump would need to come up with more than $550 million to cover the bond. The lack of underwriters willing to accept real estate as collateral has been described as a major obstacle by Alan Garten, the top legal officer of the Trump Organization.
Trump’s campaign spokesman Steven Cheung criticized the size of the fraud judgment, calling it an abuse of the law and a threat to the rule of law in New York. Despite the challenges, Trump remains determined to fight the legal battle and continue his efforts to “Make America Great Again.”
CNN’s Kate Sullivan contributed to this report, providing additional details and background information on the ongoing legal saga surrounding former President Donald Trump.