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Judge Engoron Throws Wrinkle in Donald Trump's Bond Problem


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Donald Trump will need an independent monitor's approval for the $557 bond he has to file in court on Monday, a lawyer has said.

If Trump doesn't file the money, the New York attorney general will start placing a lien on his property.

Trump's need to get a sign-off from Barbara Jones, who was appointed as "enhanced" monitor last Thursday. Those extra powers include monitoring any surety he puts up for bonds and monitoring any financial guarantees he makes to obtain those bonds. It adds an added complication to the president's attempts to raise the bond.

On February 16, Judge Arthur Engoron ordered that Trump had to pay $454 million in penalties and interest for fraudulently inflating the value of his assets to obtain bank loans. Trump's lawyers wrote in a court filing on Thursday that, with a 20 percent premium from the bond company, Trump will be seeking a bond of $577 million.

"Judge Engoron has ordered the independent monitor to be involved in Trump's efforts to secure the bond, which isn't making it any easier," Neama Rahmani, a former federal prosecutor, told Newsweek.

donald trump court
Donald Trump attends a hearing to determine the date of his trial for allegedly covering up hush money payments linked to extramarital affairs, at Manhattan Criminal Court in New York City on March 25, 2024.... Mary Altaffer/Getty Images

Rahmani, now president of the West Coast Trial Lawyers law firm, said that many bond companies are reluctant to give the money to Trump as he may soon be president.

"Bond companies are hesitant because if Trump wins in November, they may have to enforce the bond against a sitting president," he said.

Engoron appointed Barbara Jones to monitor the Trump Organization in November, 2022. He then announced enhanced powers for her on Thursday while announcing that she would stay on as monitor for at least another three years.

Engoron wrote in his ruling that Jones must be informed of any cash transfers, dissolution of assets and "any efforts to secure surety bonds" as well as any financial documents that the Trump Organization puts forward to secure those bonds.

He also wrote that Trump must not try to evade Jones.

"Defendants shall not evade the terms of this Monitorship Order by transferring assets, reincorporating existing business entities in other forms or jurisdictions, modifying entity ownership, or any other form of restructuring or change in corporate form," Engoron wrote.

In February, Judge Arthur Engoron ruled that Trump had to pay roughly $454 million, with interest included, in penalties for fraud.

The ruling stated that Trump and executives at the Trump Organization inflated the value of his assets to obtain more favorable terms from lenders and insurers. The lawsuit, brought by New York Attorney General Letitia James, initially sought $250 million in damages, but she later increased this figure to $370 million, plus interest.

The former president has been seeking a bond of $464 million to cover his fines and the disgorgement for his sons Eric and Donald Jr., who were co-defendants in the case. Disgorgement requires a party who benefits financially from illegal or wrongful acts to give up any profits they made as a result of that conduct.

Now, Trump has until March 25 to come up with a bond amount or the New York AG could begin seizing some of his assets. He has yet to announce how that amount will be paid or what alternative action he might take.

Uncommon Knowledge

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

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