How Trump paid $175 million bail in his civil fraud case | Trending Viral hub

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Lawyers for former President Donald Trump were in talks to achieve what they described as a “practical impossibility” when a New York appeals court reduced the size of the bail they had to provide due to a sentence in their civil fraud case at almost 400 million dollars.

Don H.ankeyThe billionaire chairman of Knight Insurance Group told NBC News that he was negotiating to post a much higher bond of $557 million with the Trump Organization when the state Appellate Division reduced the required bond to $175 million.

A bond for that amount was posted monday night, underwritten by Knight Specialty Insurance Co. of Hankey. Hankey said the bond was fully collateralized by cash from Trump’s company. “It was a good experience,” Hankey said.

The constitution of the bail prevents the Attorney General of New York, Letitia James, from collecting the bail. $464 million judgment against Trump and his co-defendants in a civil fraud case while the appeals process plays out.

Judge Arthur Engoron handed down the enormous sentence: compensation of more than $350 million that figure skyrocketed to $464 million with pre-judgment interest, after it was discovered that Trump, his company and his top executives had committed “persistent” fraud over several years.

Trump immediately appealed the award, arguing that it was full of errors and that the judge had double- and triple-counted some of the damages. In New York, if people or companies want to pause sentences while they appeal, they typically have to post collateral for full awards, and then some.

Because state law requires a 9% annual interest rate on judgments while a party appeals, New York courts generally require 120% collateral on the award. For Trump and his co-defendants, that would total $557 million, his attorneys said in court papers.

Trump’s lawyers asked the appeals court to reduce the amount they had to release to $100 million. They argued that having to release the full amount was “impossible” and would require Trump and his company to start selling assets because they didn’t have as much cash on hand.

A single judge of the court of appeals rejected that request in late February, but gave Trump an accelerated briefing schedule to present his case before a full panel of judges before the deadline by which James would begin collecting the sentence.

Trump’s lawyers then explained in detail the difficulties in obtaining the necessary funds.

“Defendants’ continued diligent efforts have demonstrated that bail in the full amount of the judgment is ‘a practical impossibility,’” they said in a March 18 filing. “These diligent efforts have included approaching approximately 30 escrow companies through four different brokers.”

They went on to say that their efforts had shown that “obtaining an appeal bond in the full amount” of the sentence “is not possible given the circumstances presented.” This was largely because most bond companies would not “accept hard assets such as real estate as collateral” but “will only accept cash or cash equivalents (such as marketable securities),” their presentation said.

Experts told NBC News that Trump needed the appeals court to pause because if James had started seizing assets, the results could have been disastrous for your company, which could lead to bankruptcy.

Trump’s lawyers asked the appeals court to prevent the defendants from posting any collateral while the appeal process plays out, maintaining that Trump’s “real estate holdings,” including iconic properties like 40 Wall Street, Doral Miami and Mar -a-Lago, — far exceed the amount of the sentence” and could be used to satisfy the compensation if they lost their appeal.

Shortly after, Hankey… Who told Forbes? has supported Trump’s political campaigns in the past and got involved. She told NBC News that she had been following Trump’s troubles getting a link in the news and “let an acquaintance of mine” with ties to Trump know that the huge link was something he could “consider.”

He said he was on his second day of negotiations with a Trump Organization lawyer when the Appellate Division reduced the bail amount to $175 million and gave Trump 10 days to submit it. That deadline was to expire on Thursday.

“When the bond was reduced, we thought they would be able to cover the damages themselves and we didn’t think we would hear from them again, but they called us back” a couple of days later, Hankey said. The talks happened quickly and the company said it would guarantee the full amount through a combination of cash and bonds. The money he ultimately contributed appeared to be all cash, Hankey added.

“We’ve done bonuses in the past, but this is too big for us and for everyone,” he said, adding that his involvement had nothing to do with politics.

“This is what we do,” he said. “I would love to do this for a Republican or a Democrat.”

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