New York judges slash Donald Trump’s bond in business fraud trial to US$175 million

A New York appeals court has handed Donald Trump a critical lifeline by slashing the bond for his business fraud case, with a trial planned for April 15 as his campaign for president ramps up.

A New York appeals court has slashed a US$454 million bond Donald Trump was required to post to satisfy a fraud finding against him to US$175 million, pending an appeal, and granted him another 10 days to pay it, handing the former president a crucial financial lifeline as his campaign for president ramps up.

Five appellate judges issued a terse statement hours before the state’s Attorney General Letitia James could have begun proceedings to seize Mr Trump’s real estate and financial assets after he had earlier claimed he wasn’t able to obtain a bond for such a large amount that was due on 25th March.

“We will abide by the decision of the Appellate Division, and post either a bond, equivalent securities, or cash. This also shows how ridiculous and outrageous Engoron’s original decision was at $450 Million,” Mr Trump said on his social media platform Truth social in the wake of the decision.

Justice Arthur Engoron last month found Trump and his businesses committed a series of fraudulent actions in a scheme to inflate his net worth for financial gain, imposing US$355 million in penalties, plus interest, meaning Trump’s debt grows by the day.

It wasn’t all good news for Mr Trump on Monday (Tuesday AEDT), after the judge overseeing Mr Trump’s hush-money case said the criminal trial, which had been delayed owing to the discovery of new evidence, would begin on 15th April, refusing to delay it further as Mr Trump’s lawyers had requested.

In that case, from one of the four criminal indictments against Mr Trump that emerged last year, Manhattan District Attorney Alvin Bragg accused Mr Trump of 34 counts of falsifying business records to cover up a hush-money payment to porn star Stormy Daniels on the eve of the 2016 election.

Trump has denied wrongdoing and accused Bragg, a Democrat, of being politically motivated.

Speaking to reporters outside the court in lower Manhattan on Monday, Trump said he would use cash as collateral for the new, lower sized bond.

“I did nothing wrong, and New York should never be put in a position like this again”.

Donald Trump after his court hearing to determine the date of his trial for allegedly covering up hush money payments linked to extramarital affairs in New York City. Picture: AFP.

His lawyers last week said the penalty was so large they couldn’t obtain a bond from at least 30 financial institutions, even after offering Mr Trump’s substantial real estate holdings in Florida and New York as collateral.

Ms James had laid the groundwork for potentially seizing Trump properties outside Manhattan in New York, including Trump National Golf Club and Seven Springs estate, after registering the judgement there earlier this month, a procedural step before seizure.

She had urged the appeals court to dismiss Mr Trump’s claim, arguing earlier in a statement to the court that “there is nothing unusual about even billion-dollar judgments being fully bonded on appeal”.

The prospect of having to declare bankruptcy or obtain funds from wealthy friends to stave off asset seizures by Ms James presented a potential political problem for Mr Trump, who has long prided himself for being a billionaire successful businessman.

Mr Trump will still have to pay the full amount of the penalty if he loses his appeal, which he has promised to take to the Supreme Court.

The former president’s net worth has been estimated at $3 billion, but much of it is tied up in real estate. While Trump has a potential windfall coming after investors approved a plan to take his social-media company public, he likely won’t be able to tap in to those funds for six months.

Trump’s campaign has been fundraising off the looming collection, including in several emails to supporters over weekend with slogans such as, “Trump Tower will never be captured!”