Suffolk County has taken its first formal financial steps to contain the fallout from the $112 million federal jury verdict that found the county unlawfully held hundreds of immigrants on ICE detainers between 2016 and 2018. The ruling, issued in November, concluded that detainees were held without notice or a hearing, some even after posting bail, resulting in $75 million awarded for unlawful detention and another $37 million for due-process violations.
Less than two weeks after the judgment, the County Legislature voted to approve the purchase of a surety bond designed to “stay” the verdict during the appeal process. The bond functions as a financial backstop, temporarily halting the requirement to pay while the county seeks to overturn or reduce the award. Without it, Suffolk could be exposed to immediate financial liability equal to roughly 2.6% of its $4.3 billion annual budget.
On December 1, the county issued a voluntary disclosure to bondholders through the Municipal Securities Rulemaking Board’s EMMA system. The filing notified investors of both the judgment and the surety bond purchase and stated that the information, while not required under Rule 15c2-12, “may be relevant to the financial evaluation of the county’s outstanding obligations.”
The disclosure explains that the surety bond gives Suffolk time “to challenge or negotiate the payout,” signaling to credit analysts that the county is attempting to manage the fiscal shock while appealing the case. The verdict stems from policies implemented under former Sheriff Vincent DeMarco and represents one of the largest civil-rights judgments in county history.
County officials have declined to elaborate beyond an initial statement, noting that they will appeal the judgement.
With other major liabilities still pending, including multimillion-dollar settlements tied to past misconduct, Suffolk faces mounting financial pressures as the appeal proceeds.