Donald Trump Gets Win Over Letitia James
In a recent development, former President Donald Trump has secured a significant victory over New York Attorney General Letitia James. The $175 million bond agreement posted by Trump in his civil fraud case against James has implications that may spell trouble for the Attorney General. Let’s delve into the details.
Summary:
Donald Trump’s bond posting prevents Letitia James from seizing his assets while he appeals Judge Arthur Engoron’s judgment against him. Engoron had previously ordered Trump to pay $355 million after siding with James in a civil suit. The suit accused Trump and top executives at The Trump Organization of inflating his net worth on financial statements provided to banks and insurers. As a result of interest, Trump’s debt grew to $464 million. The bond, initially set at $175 million, has raised questions about its sufficiency.
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Hidden Red Flags in the Bond Agreement:
Buried within the bond contract is a line that states if the judgment is “affirmed” or the “appeal is dismissed,” the defendants (including Trump) must pay the sum directed by the judgment plus interest and costs. However, there is no guarantee that the insurance company backing the bond will pay. Essentially, this leaves Letitia James in the same position as before Trump secured the bond. If he loses the appeal and cannot pay, James may still be able to seize his assets.
Legal Expert Jonathan Turley’s Remarks:
Legal expert Jonathan Turley compared Trump’s treatment in New York to “mob justice.” Turley highlighted the perverse incentive created by the astronomical damages imposed on Trump. Even if he gets the bond, he still loses money due to its cost. Turley emphasized that Trump’s position is challenging: “In order to get any other judge to look at what I’ve done to you, you’ve got to come up with basically the same amount of money that I’ve just ordered you to pay.”1
The battle between Trump and James continues, with significant financial stakes and legal complexities at play. Stay tuned for further developments in this high-profile case.
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Sources:
- Newsweek: Letitia James Gets Bad News Hidden in Donald Trump’s Bond
- ABC News: Letitia James says she’s prepared to seize Trump’s buildings