Trump Admits He Likely Can’t Pay Fraud Bond

Donald Trump claimed last week that he had nearly $500 million in liquid assets that he could use to pay the civil fraud judgment against him but said he would rather use that money to fund his presidential campaign, the Associated Press reported.

In a Truth Social post last Friday, Trump said while he had enough cash on hand to cover the $454 million judgment imposed by New York Judge Arthur Engoron, he would prefer to use it on his presidential run.

Trump has appealed Judge Engoron’s judgment and has asked a New York appeals court to waive the requirement for him to post a bond while his appeal is underway to half enforcement of the judgment.

In a March 18 filing, Trump’s attorneys told the appeals court that Trump was unlikely to obtain the bond required after more than 30 underwriters refused to put up the money without liquid assets as collateral.

Most underwriters refuse to accept real estate holdings as collateral, preferring cash, or similar assets like stocks or bonds.

In his Truth Social post, Trump did not provide any proof that he had over half a billion in liquid assets at his disposal. His lawyers told the court that it would be impossible for Trump to provide the cash needed for the bond, which they claim would be 120 percent of the judgment, or more than $557 million.

According to Trump’s lawyers, the former president must have a certain amount of cash on hand to meet his various obligations, including one property loan that requires Trump to maintain liquid assets of at least $30 million.

Trump’s appeal does not halt enforcement of the judgment. The only way to avoid that would be if the bond is paid or the appeals court agrees to waive the current bond. If neither happens, New York Attorney General Letitia James could begin seizing Trump’s assets to pay the judgment.

Last Friday, Trump’s media company Trump Media & Technology Group went public on the stock market, giving the former president’s finances a shot in the arm, CBS News reported.

With the public offering, Trump’s roughly 58 percent of the shares are now worth as much as $3.5 billion. While this windfall could relieve some of Trump’s financial troubles, it would not be available immediately since the company’s shareholders are subjected to a six-month “lock-up” provision before they are free to sell their shares.