[ad_1]
Written by Alexandra Ulmer
(Reuters) – Some major Republican donors have stepped up to help cover the initial bail amount needed to cover U.S. presidential candidate Donald Trump’s $454 million civil fraud judgment ahead of Monday’s deadline. They are cooperating, three sources briefed on the matter told Reuters.
Former Republican President Donald Trump must post bail in a civil lawsuit in New York that accuses him of fraudulently inflating his net worth by billions of dollars to obtain favorable loan and insurance terms.
He won a bid on Monday to delay the sentence by posting a small bail of $175 million within 10 days, but he is struggling to raise the original amount until the last minute. There was also a risk that their property would be seized.
Billionaire hedge fund founder John Paulson was involved in behind-the-scenes efforts by donors concerned about President Trump’s legal problems to help fund the bonds, officials said. Two people involved told Reuters. Oil and gas magnate Harold Hamm was also involved, one of the people said.
The sources requested anonymity to speak freely about the issue, which has not previously been reported.
Mr. Paulson, founder of Paulson & Company, did not respond to requests for comment. He called Mr. Hamm, founder of the oil company Continental Resources, and when he asked about his involvement, he appeared to hang up. A spokesperson for Ham did not respond to a request for comment.
“There was no coordinated effort,” Trump campaign spokesman Stephen Chan said in response to a request for comment. He added that Trump has “plenty of cash” to pay the judgment in full.
A fourth source, a Trump ally, said he had direct knowledge of one donor who provided more than $10 million for the bond over the weekend before being told it wasn’t needed.
Trump said he can now make payments after a court ruling on Monday allowed him to issue smaller bonds.
“We’re going to give you $175 million in cash, bonds, securities and whatever else you need right away,” Trump told reporters in New York.
Mr. Trump’s lawyers said the surety company likely required Mr. Trump to post about $558 million, or 120% of the judgment, as collateral for the original bond.
Details of the billionaire’s fundraising efforts were not immediately available, including how much each donor could potentially contribute. The group pooled the entire amount due on Monday, a source said. It’s unclear whether big donors will offer to fund the new bonds.
It was also unclear whether President Trump would be required to provide collateral or other guarantees to his backers.
Potential help from President Trump’s billionaire allies could provide some deep pockets of support in the president’s effort to take on Democrat Joe Biden in the Nov. 5 presidential election and take back the White House. It shows that it is maintained.
Also, how big donations could potentially play a different role in this presidential election, as President Trump faces significant financial stress amid multiple legal judgments and expenses. It’s highlighted.
Mr. Paulson and Mr. Hamm are both participating in Mr. Trump’s future campaign fundraising unrelated to the bond effort. The invitation lists Paulson as the host and Hamm as co-chair.
Funds raised at the April 6 event in Palm Beach, Fla., will go to the Trump campaign, the Republican National Committee, the state Republican Party and groups that are paying some of Trump’s legal costs, according to the invitation. will be donated to.
Another person briefed on the matter said President Trump has talked about choosing Paulson to be his Treasury secretary if he is elected president.
Bond transparency is low
There is no obligation to disclose the source of funds obtained for the bond.
For example, the terms of Trump’s $91.6 million bond for a defamation verdict in favor of author E. Jean Carroll were not disclosed. The bond was posted on March 8 by Federal Insurance Company, part of the insurance company Chubb, which said the bond must be fully collateralized.
In Trump’s civil fraud ruling, the bond would prevent the state from seizing his assets while he appeals Judge Arthur Engoron’s Feb. 16 ruling against him. If President Trump loses his appeal and is found unable to pay, the bonding company will be required to pay.
Donors helping pay off Trump’s public debt could face scrutiny from election officials and federal prosecutors if they gave him more than the campaign spending limit.
Although the payments were not direct contributions to the Trump campaign, federal law broadly defines political contributions as “anything of value” provided to a campaign.
Trump’s lawyers announced in early March that about 30 surety companies approached Trump through four separate brokers in his attempt to secure the principal amount of bail needed for his $454 million judgment. revealed that he had refused.
If the moratorium is not granted and President Trump is unable to post the initial bond on Monday, New York Attorney General Letitia James will ask the court that he owns valuable real estate, including 40 Wall Street in Manhattan. They could have asked the court to initiate a seizure of their assets, including the property.
(Reporting by Alexandra Ulmer; Additional reporting by Liz Hampton, Lananh Nguyen, Nathan Layne, Greg Roumeliotis, Gram Slattery, Luc Cohen, Jack Queen and Carolina Mandl; Editing by Colleen Jenkins, Nia Williams and Michael Perry)
[ad_2]
Source link
