A New York appeals court cut the bail they had to deposit due to a verdict in his civil fraud case by over $400 million, prompting former President Donald Trump's lawyers to talk a "practical impossibility"
When the California Appellate Division decreased the bond requirement to $175 million, Knight Insurance Group billionaire chairman Don Hankey informed NBC News he was negotiating a $557 million bond with the Trump Organization.
On Monday night, Hankey's Knight Specialty Insurance Co. posted that bail. Hankey claimed Trump's company's funds completely secured the bond. "Good experience," Hankey stated.
The bail bars New York Attorney General Letitia James from collecting on the $464 million civil fraud verdict against Trump and his co-defendants throughout the appeals process.
Judge Arthur Engoron determined Trump, his corporation, and key executives committed “persistent” fraud over several years and awarded over $350 million, which increased to $464 million with pre-judgment interest.
Trump promptly contested the decision, claiming the judge had made mistakes and double- and triple-counted damages. In New York, people or companies must post security for the whole awards and more to pause verdicts while appealing.
Because state law imposes a 9% annual interest rate on appealed judgments, New York courts usually seek 120% of the award as security. Their lawyers filed court documents stating that Trump and his co-defendants will receive $557 million.
Trump's attorneys asked the appeals court to lower their deposit to $100 million. They claimed that posting the full amount was "impossible" and would force Trump and his company to sell assets since they didn't have enough cash.
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