Trump to invest $175m in fraud case to prevent confiscation | Corruption Issues


The former President of the United States was found guilty in February of misrepresenting his net worth to the tune of $2bn.

Former United States President Donald Trump posted $175m bail in his New York fraud trial, avoiding a seizure that would have severely damaged his fortune and his re-election hopes.

Trump, who is due to face US President Joe Biden for the presidency in November, was found guilty in February of misrepresenting his net worth of $2bn in order to get better loans and insurance.

An appeals court last week ordered Trump, his eldest children, and two former Trump Organization executives to pay the money within 10 days, allowing them to avoid paying a $454m debt imposed by another judge.

Trump’s lawyers also said that getting a full settlement would be impossible after more than 30 insurance companies refused to accept Trump’s money and assets as collateral.

A three-judge appeals court would rule on Trump’s appeal.

Trump has denied his wrongdoings, saying he underestimated his wealth and that financial institutions did not take his calculations seriously.

The deal means that New York Attorney General Letitia James, who filed the lawsuit against the Republicans, will not be able to collect $454m until Trump completes his appeal.

Without the deal, James would have taken steps to seize Trump’s properties, including freezing bank accounts and collecting rent from his tenants.

The $175m bond was issued by Knight Specialty Insurance Company of California.

The agreement does not include a transfer of funds but means that the company has promised to pay Trump’s judgment if his appeal is unsuccessful and he is unable to pay.

Under New York law, execution of a judgment can be stayed if a bond is set to guarantee payment of the debt.

Trump is facing numerous legal challenges as he campaigns for the presidency, including four lawsuits in four different states.

In the first of the cases, Trump is scheduled to stand trial on April 15 on charges that he falsified insider trading records to cover up payments to former movie executive Stormy Daniels in the run-up to the 2016 presidential election.



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