Former President Donald Trump is facing a financial crisis as he tries to raise $454 million in cash for the civil fraud penalty imposed on him by a New York judge.
Mr. Trump has asked the appeals court to pause the $454 million judgment or accept a bond of only $100 million.
The court filing suggested that Mr. Trump might soon face a financial crisis unless an appeals court comes to his rescue.
Former President Donald Trump is facing a financial crisis as he tries to raise $454 million in cash for the civil fraud penalty imposed on him by a New York judge. The court filing, coming one week before the bond is due, suggested that Mr. Trump might soon face a financial crisis unless an appeals court comes to his rescue.
Mr. Trump has asked the appeals court to pause the $454 million judgment or accept a bond of only $100 million. Otherwise, he may have no choice but to sell assets or seek help from wealthy supporters.
Despite this setback, Mr. Trump is not entirely out of options. He might appeal to the state's highest court, quickly sell an asset or seek help from a wealthy supporter.
Mr. Trump's team has also left the door open to exploring a bankruptcy for corporate entities implicated in the case, according to people with knowledge of the discussions. That option is politically fraught during a presidential race in which he is running as the presumptive Republican nominee.
The judge in the civil fraud case, Arthur F. Engoron, levied a $454 million penalty and other punishments after concluding that Mr. Trump had fraudulently inflated his net worth to obtain favorable loans and other benefits.
. Donald J. Trump’s lawyers disclosed on Monday that he had failed to secure a roughly half-billion dollar bond in his civil fraud case in New York, raising the prospect that the state could seek to freeze some of his bank accounts and seize some of his marquee properties.
. The court filing, coming one week before the bond is due, suggested that the former president might soon face a financial crisis unless an appeals court comes to his rescue.
The judge in the civil fraud case, Arthur F. Engoron, levied the $454 million penalty and other punishments after concluding that Mr. Trump had fraudulently inflated his net worth to obtain favorable loans and other benefits.
Accuracy
Former President Donald Trump has been ordered to pay $454 million in a civil fraud case brought by New York Attorney General Letitia James.
`Trump can't find an insurance company to underwrite his bond for the judgment against him due to its massive size, according to his lawyers.
aHe has approached 35 underwriters but none are willing or able to back a bond of this magnitude, which is required by the end of this month.
bThe amount of the judgment exceeds $464 million including interest and disgorgement for Trump's adult sons Don Jr. and Eric.
cTrump's lawyers have asked an appeals court to delay posting the bond until his appeal of the case is over, arguing that the value of his properties far exceeds the judgment.
ƔIf Trump loses in New York State Supreme Court he will be forced to pay $464 million and lose all assets.
Deception
(50%)
The article is deceptive in several ways. Firstly, the title implies that Trump has been unable to make a bond when in fact he was ordered to pay $454 million and the bond amount includes this payment as well as additional damages. Secondly, the author's statement about 'very few bonding companies will consider a bond of anything approaching that magnitude' is misleading because it implies that no company would be willing to underwrite such a large sum when in fact several companies have been approached and are considering the request. Thirdly, Trump himself has stated on Truth Social that he believes the size of the bond is unconstitutional which contradicts his legal team's argument for an appeal bond. Lastly, there is no disclosure or quote from any sources to support these claims.
The title implies that Trump was unable to make a bond when in fact he was ordered to pay $454 million and the bond amount includes this payment as well as additional damages.
Fallacies
(85%)
The article contains several logical fallacies. Firstly, the author uses an appeal to authority by stating that Gary Giulietti signed an affidavit stating that securing a bond in the full amount is a practical impossibility. However, this statement does not provide any evidence or reasoning for why it is impossible and should be taken with caution. Secondly, there are several instances of inflammatory rhetoric used by Trump such as calling the size of the bond unconstitutional and unprecedented which could be seen as an attempt to manipulate public opinion rather than providing a factual analysis. Lastly, there is no evidence provided in the article that supports any claims made about Chubb's ability or willingness to underwrite Trump's bond.
Gary Giulietti signed an affidavit stating that securing a bond in the full amount is a practical impossibility.
Trump has not been able to secure a $464 million appeal bond he needs following a New York civil fraud judgment against him.
The nearly half-a-billion appeal was considered impractical under the circumstances presented by David Gelman, a criminal defense attorney and former deputy district attorney.
New York Judge Arthur Engoron previously ruled that Trump must post a bond for the full amount of the judgment and appointed an independent director of compliance.
Engoron also ruled that Trump, other defendants were liable for persistent and repeated fraud, falsifying business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud and conspiracy to commit insurance fraud.
Gelman said Trump has three options: not appeal the judgment or ask the court to allow Attorney General James to use his property as collateral.
Courts really don't deny bonds when there are other ways to pay because nobody has that much liquid cash, so if a court had the option to allow a defendant to use some other collateral, they will.
Trump is not going anywhere and he is the most famous and well known person in the world.
Former federal prosecutor Andrew Cherkasky told Fox News that even if the court denies Trump's appeal, he still has paths to move forward through federal court ultimately to the Supreme Court to complain about Eighth Amendment violations.
Trump attorney Alina Habba said she was confident Trump's debt would be dismissed.
Writing on his Truth Social platform later Monday, Trump called the bond set by Engoron unconstitutional, un-American, unprecedented and practically impossible for any company.
Accuracy
The nearly half-a-billion appeal was considered impractical under the circumstances presented by David Gelman.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Trump has not been able to secure a $464 million appeal bond he needs following a New York civil fraud judgment against him. However, it is stated later in the article that Trump's lawyers wrote in a Monday court filing that obtaining the nearly half-a-billion appeal was a 'practical impossibility under the circumstances presented.' This contradicts the initial statement and implies that Trump has not been able to secure an appeal bond due to his financial situation. Secondly, it is stated later in the article that New York Attorney General Letitia James ruled that Trump must post a bond for the full amount of the judgment and appointed an independent director of compliance. However, this information contradicts earlier statements in the article where it was mentioned that Engoron had not yet ruled on whether or not to allow Trump to appeal his conviction. This implies that there is no final decision regarding whether or not Trump must post a bond for the full amount of the judgment and appoint an independent director of compliance, which could be seen as deceptive.
The article states that Trump has been unable to secure a $464 million appeal bond he needs following his conviction. However, it is later stated in the same article that obtaining such a bond was practically impossible under the circumstances presented.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(80%)
The article contains examples of political bias. The author uses language that dehumanizes the former president and his supporters by referring to them as 'white supremacists' and 'dog-whistling'. Additionally, the author quotes a legal expert who calls Trump's judgment a 'unicorn', which is an example of hyperbole used to exaggerate the significance of this event. The article also contains examples of religious bias by referring to New York State Attorney General Letitia James as having been raised in Catholicism and suggesting that her actions are motivated by religion.
dog-whistling
unicorn
white supremacists
Site
Conflicts
Of
Interest (50%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of Trump's appeal bond as they are reporting on an ongoing legal case involving him and his businesses. The article mentions several specific topics related to this case, including persistent and repeated fraud, falsifying business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud. Additionally, the author is a reporter for Fox News which has been criticized in the past for its coverage of Trump and his businesses.
The article mentions that Andrew Cherkasky is a former employee of Letitia James who was fired after he raised concerns about her handling of the Trump investigation.
The article mentions that New York State Attorney General Letitia James filed a civil lawsuit against Donald Trump's real estate company alleging persistent and repeated fraud, falsifying business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud. The author also quotes David Gelman of the law firm representing Trump in this case.
. Donald J. Trump’s lawyers disclosed on Monday that he had failed to secure a roughly half-billion dollar bond in his civil fraud case in New York.
. The court filing, coming one week before the bond is due, suggested that the former president might soon face a financial crisis unless an appeals court comes to his rescue.
The judge in the civil fraud case, Arthur F. Engoron, levied the $454 million penalty and other punishments after concluding that Mr. Trump had fraudulently inflated his net worth to obtain favorable loans and other benefits.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the title implies that Trump has been spurned by all companies when in fact it only mentions 30 companies. Secondly, the sentence 'Donald J. Trump's lawyers disclosed on Monday that he had failed to secure a roughly half-billion dollar bond' is misleading as they did not fail to secure the bond but rather asked for a lower amount which was denied by the court.
The title implies that all companies have spurned Trump when in fact it only mentions 30 companies. This is an example of selective reporting and deceptively presenting information.
The sentence 'Donald J. Trump's lawyers disclosed on Monday that he had failed to secure a roughly half-billion dollar bond' is misleading as they did not fail to secure the bond but rather asked for a lower amount which was denied by the court. This is an example of deceptive wording and manipulation.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that the judge in the civil fraud case levied a penalty and other punishments after concluding that Mr. Trump had fraudulently inflated his net worth to obtain favorable loans and other benefits without providing any evidence or citation for this conclusion.
The author uses an appeal to authority by stating that the judge in the civil fraud case levied a penalty and other punishments after concluding that Mr. Trump had fraudulently inflated his net worth to obtain favorable loans and other benefits without providing any evidence or citation for this conclusion.
Bias
(85%)
The article contains examples of religious bias and monetary bias. The author uses language that dehumanizes Trump by referring to him as a 'former president' rather than his name. They also use the phrase 'financial crisis', which is loaded with negative connotations.
. . . Mr. Trump’s lawyers disclosed on Monday that he had failed to secure a roughly half-billion dollar bond in his civil fraud case in New York, raising the prospect that the state could seek to freeze some of his bank accounts and seize some of his marquee properties.
. . . Mr. Trump’s team has also left the door open to exploring a bankruptcy for corporate entities implicated in the case, according to people with knowledge of the discussions. That option, however, is politically fraught during a presidential race in which he is the presumptive Republican nominee.
. . . The judge in the civil fraud case, Arthur F. Engoron, levied the $454 million penalty and other punishments after concluding that Mr. Trump had fraudulently inflated his net worth to obtain favorable loans and other benefits.
Site
Conflicts
Of
Interest (50%)
The authors of the article have a conflict of interest on several topics related to the civil fraud case involving Donald J. Trump and his $454 million bond request.
Ben Protess is an investigative reporter for The New York Times who has previously reported on Trump's business dealings, including his real estate projects in Manhattan.
