Trump faces panic as deadline looms for half-billion-dollar bond in fraud case: Report

NEW YORK: Former President Donald Trump finds himself in a state of heightened concern as the looming deadline approaches to secure a substantial bond to appeal his civil fraud case in New York, CNN reported.

Panic mode has set in for Trump as he grapples with the task of obtaining a half-billion-dollar bond, CNN reported citing multiple sources familiar with his situation.

Acknowledging the difficulty in finding an insurance company willing to underwrite his USD 454 million bond, Trump's legal team has been working tirelessly to explore various avenues. Privately, Trump had pinned his hopes on Chubb, the insurer behind his previous USD 91.6 million bond in the E Jean Carroll judgment. However, hopes were dashed when Chubb informed his attorneys that this option was no longer viable.

In a bid to secure the necessary funds, Trump's team has reached out to affluent supporters and considered the possibility of selling assets quickly. The weight of the approaching March 25 deadline is palpable, particularly for Trump, whose image has long been intertwined with his wealth. Concerns over the optics of facing a financial crisis have only intensified Trump's anxiety, according to CNN.

Behind closed doors, Trump has expressed frustration towards New York Attorney General Letitia James and Judge Arthur Engoron regarding the matter. Trump perceives the deadline and the financial strain it entails as unjust, and he continues to privately criticise the legal proceedings.

Venting his frustrations publicly, Trump took to social media in the early hours of the morning, posting multiple times about the impending deadline. He argued against the necessity of putting up the required funds, expressing worry about the potential repercussions on his assets.

However, these grievances were swiftly countered by Trump campaign spokesman Steven Cheung, who labelled them as baseless innuendos. Cheung emphasised Trump's efforts to challenge what he perceives as an unjust judgment, characterising it as a political witch hunt orchestrated by a corrupt Attorney General.

"Does that make sense? WITCH HUNT. ELECTION INTERFERENCE!" the former president wrote.

"These baseless innuendos are pure bullsh*t," Trump campaign spokesman Steven Cheung said in a statement Tuesday, adding, "President Trump has filed a motion to stay the unjust, unconstitutional, un-American judgment from New York Judge Arthur Engoron in a political Witch Hunt brought by a corrupt Attorney General. A bond of this size would be an abuse of the law, contradict bedrock principals of our Republic, and fundamentally undermine the rule of law in New York."

As Trump awaits a decision from the appeals court on whether the judgment will be stayed or if a smaller bond of USD 100 million will suffice, he remains steadfastly opposed to the notion of filing for bankruptcy. Trump's legal team informed the New York appeals court of their efforts to secure backing for the bond from numerous underwriters, but the task proves to be challenging. Notably, potential underwriters are demanding cash to support the bond, rather than properties, according to Trump's lawyers, as reported by CNN.

The origins of the bond trace back to Engoron's ruling last month, which ordered Trump to pay USD 355 million in disgorgement in the case brought by James. Engoron found Trump and his co-defendants liable for fraud, conspiracy, and issuing false financial statements and business records. The judgment, which surpassed USD 450 million with interest included, mandated the posting of a bond to halt the state from enforcing it, pending the appellate process.

Despite having posted a substantial bond earlier in a separate case, limitations from major underwriters pose a significant challenge in this instance. Gary Giulietti, an insurance broker who testified for Trump during the civil fraud trial, highlighted internal policies among some of the largest underwriters that restrict them from securing bonds exceeding USD 100 million, CNN reported.