Donald Trump, Bernie Madoff bond comparison is missing context | Fact check

Chris Mueller, USA TODAY

The claim: Post implies corruption explains gap between Trump's $454M bond and Madoff's $10M bond

A March 26 Facebook post (direct link, archive link) shows images of disgraced financier Bernie Madoff and former President Donald Trump.

"Bernie Madoff Bond $10 million," reads text next to Madoff's image. "Responsible for the largest Ponzi scheme in history, defrauded thousands of investors out of tens of billions of dollars over the course of 17 years, possibly longer."

"Donald Trump Bond $455 million," reads text next to Trump's image. "No victim, banks paid back early with interest, and banks wanted to do more business with Trump."

The post titles the comparison, "We all see what's happening." Some commenters took this as proof the case against Trump was corrupt.

"Fault of Democrats framing Trump – when they are the guilty corrupt ones," reads one comment.

The post was shared more than 300 times in six days.

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Our rating: Missing context

The implied claim here is wrong, as it's built on a faulty comparison between two different types of cases. Trump's bond is to protect his assets while he appeals his civil fraud trial loss. Madoff's bond, on the other hand, was part of an agreement that kept him out of jail while his criminal case moved through court.

Trump's civil bond 'very different' from Madoff's criminal bond

In late September, New York Judge Arthur Engoron ruled that Trump and his company committed fraud for years by overvaluing assets and inflating his worth on financial statements as he made deals and secured loans. A two-month trial to determine the penalty ended with Engoron ordering Trump to pay $454 million in penalties and interest.

Trump said he plans to appeal the judgment, but his lawyers told an appeals court that securing a bond of that amount was "a practical impossibility" given the circumstances. In late March, the appeals court handling Trump's case ruled that he and his co-defendants only have to post $175 million to shield their assets while they pursue an appeal. Trump and the others posted the bond April 1.

Trump's case was handled in civil – not criminal – court, which means his bond is "very different" from the bond in Madoff's criminal case, Maggie Gardner, a law professor at Cornell University, told USA TODAY.

Fact check: No, Donald Trump was not criminally prosecuted for taking out, repaying loan

In 2009, Madoff pleaded guilty to multiple criminal charges for orchestrating the largest Ponzi scheme in history and was sentenced to 150 years in prison. He died there in 2021.

But while Madoff's criminal case was pending, he was confined to his New York apartment on a $10 million bond that kept him out of jail while awaiting trial.

Before that confinement, bail terms that included allowing Madoff to travel nearby during the day drew criticism as being lenient in light of the scope of the fraud alleged.

"The $10 million was to ensure Madoff showed up at his trial," Gardner said. "That was money he had to front while he was still presumed innocent."

However, in Trump's civil case, the trial had already concluded and Trump was ordered to pay $454 million.

"It is standard practice in U.S. courts, both state and federal, that if you want to appeal a money judgment, you have to put up a bond for the judgment plus interest so the other side and the court know you are good for the money if you lose your appeal," Gardner said.

The financial penalty imposed on Trump is based on "ill-gotten gains" he acquired by exaggerating his wealth, including money he saved from lower interest rates on loans and profits from selling properties he otherwise would not have been able to develop.

USA TODAY reached out to the social media user who shared the post for comment but did not immediately receive a response.

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This article originally appeared on USA TODAY: Trump's civil bond differs from Madoff's criminal bond | Fact check

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