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The New York attorney-general has rejected Donald Trump's claim that it was a "practical impossibility" to post a bond while he appeals against a nearly half-billion dollar fraud judgment, escalating the threat that the state will move to seize his assets as soon as next week.
In a court filing on Wednesday, Dennis Fan, a lawyer for the attorney-general's office, argued that the former president could piece together a series of smaller bonds, or use his real estate portfolio to secure bank credit that could then back a surety bond. .
"Defendants' argument that obtaining a full bond is purportedly impossible is based on the false premise that they must obtain a single bond from a single surety for the entire judgment amount of $464 million," Fan wrote, urging the court to reject Trump's pleas for an extension.
The clock is running down on a 30-day grace period that Letitia James, the attorney-general, offered Trump after a New York judge last month ordered him to pay $464mn, including interest, for fraudulently inflating the value of his properties by billions. of dollars over several years.
In what would be an extraordinary confrontation in the midst of a US presidential campaign, James, a Democrat, has threatened to seize Trump's assets if he does not comply by Monday, which would deal a blow to the real estate empire upon which his fortune and brand names have been built. Trump's lawyers have asked an appeals court to delay enforcement of the judgment.
Trump, the presumptive Republican nominee for president in the November election, issued a fundraising email to his supporters on Wednesday with the headline: "Hands Off Trump Tower!".
A surety bond serves as a letter of credit to ensure that a defendant will pay a judgment if they lose the case on appeal. To protect themselves, underwriters will often ask for collateral that exceeds the amount of the judgment itself. They also charge an upfront fee of 1-3 percent.