On March 25, a New York appeals court gave former President Donald Trump 10 more days to secure a bond while he appeals his more than $454 million civil fraud judgment. The court also ruled that Trump only had to put up a $175 million bond instead of the full $454 million.
In civil cases, a bond is a guarantee provided by a third-party company to cover the judgment if the defendant loses the appeal.
Trump’s lawyers pleaded on March 18 for a state appellate court to halt collection altogether, claiming it was “a practical impossibility” to get an underwriter to sign off on a bond for such a large sum ($454 million), which grows daily because of interest.
After the news of the court decision circulated online, some social media users claimed Trump’s civil fraud penalty — not the bond — had been reduced by the court.
THE QUESTION
Did a court reduce Trump’s more than $454 million civil fraud penalty to $175 million?
THE SOURCES
THE ANSWER
No, a court did not reduce Trump’s more than $454 million civil fraud penalty to $175 million.
A New York appeals court cut the bond to $175 million and gave the former president 10 days to pay it. If Trump loses his appeal, he will still owe the entire $454 million, plus interest.
WHAT WE FOUND
Former President Donald Trump’s more than $454 million civil fraud penalty was not reduced by a New York appeals court on March 25. Instead, the court agreed to reduce the amount of the bond he is required to pay to stave off enforcement of the judgment against him in the case as legal proceedings continue.
In February, state appeals court Judge Arthur Engoron ruled that Trump and his co-defendants schemed for years to deceive banks and insurers by inflating his wealth on financial statements used to secure loans and make deals.
Trump owes the state $456.8 million, plus interest. According to the March 25 appeals court order, he must post a bond of $175 million within 10 days to stop collection during his appeal.
Under New York law, filing an appeal generally doesn’t hold off enforcement of a judgment. But there is an automatic pause if the person or entity posts a bond covering what’s owed.
Trump, who was attending a separate hearing in his criminal hush money case in New York the same day, hailed the ruling during a brief press conference and said he would post a bond, securities or cash to cover the $175 million sum within 10 days.
“I greatly respect the decision of the Appellate Division,” Trump said.
Meanwhile, New York Attorney General Letitia James’ office noted that the more than $454 million civil fraud judgment still stands while collection is paused.
“Donald Trump is still facing accountability for his staggering fraud,” the office said in a statement to several news outlets. “The judgment – plus interest – against Donald Trump and the other defendants still stands.”
The Associated Press contributed to this report.
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