Trump Allowed to Borrow Amid $454M Fraud Judgment

Former President Donald Trump and his co-defendants have been granted permission to borrow money and continue their business activities in New York while they appeal a significant civil fraud judgment. The ruling, issued by State Appellate Court Judge Anil Singh on Wednesday, allows Trump and his associates to operate in the state and seek loans, providing them with an opportunity to post the required bond amount. However, the judgment against Trump remains in effect, with the former president facing a staggering penalty exceeding $454 million.

The court’s decision includes a partial stay on the judgment, which had originally imposed a three-year ban on business operations and loan applications in New York. This partial stay could potentially enable Trump to borrow money to cover the bond amount. Trump had previously argued that he could not afford to post the nearly half-billion-dollar penalty, offering only $100 million for now. Despite this, the court rejected his request to stay the judgment, which includes a total of $454 million imposed on Trump personally.

This partial judgment presents a significant challenge for Trump, as reports suggest he may not have enough liquidity to cover the full amount owed. This situation leaves him with the possibility of borrowing against his assets, which include multi-million-dollar properties such as his golf courses or the Mar-a-Lago estate, or securing a loan from a wealthy associate.

The civil fraud case against Trump and his associates stems from allegations of repeatedly misstating the value of their assets between 2011 and 2021. The judgment against them includes over $454 million in penalties, highlighting the severity of the allegations. Trump has consistently denied any wrongdoing and has criticized both New York Attorney General Letitia James, who brought the civil claims against him, and Judge Arthur Engoron, who presided over the case. Trump has called Engoron a “political hack judge” and has disputed the valuation of his properties presented in court filings.

Last week, Trump and his co-defendants were ordered to pay $364 million plus interest in the New York judgment, totaling nearly $465 million. This adds to Trump’s existing legal fines from two separate defamation trials involving author E. Jean Carroll, who accused Trump of sexual assault in the 1990s. Trump has denied these allegations and is appealing the fraud case verdict. His legal team has requested a stay in the judgment, stating that Trump intends to pay a $100 million bond. They have criticized the judgment as being “overboard” and lacking “legal authority or factual support.”

Overall, Trump’s total liabilities from the civil fraud case and defamation trials exceed $542 million, representing a significant legal and financial challenge for the former president and his business partners.