In light of the former president’s fragile financial state, which may eventually result in the seizure of his most valuable assets, Donald Trump’s attorneys are requesting that a New York court postpone a $464 million (£365 million) fine in a civil fraud case.
According to a trump ally who received a call from a member of the presumptive GOP nominee’s team, trump, the billionaire developer seeking a return to the white house, is in the unenviable position of approaching high-dollar donors not only for campaign cash — for which he has an urgent political need — but also to see if they might guarantee his bond. The source, who wished to remain anonymous, talked openly about delicate discussions.
On February 23, New York state judge Arthur Engoron’s decision in trump’s civil fraud trial became official and the 30-day automatic stay of the verdict began. Monday is when that window closes, and unless an appeals court intervenes, New York attorney general Letitia James may begin seizing trump’s assets.
In the event that a bond cannot be obtained by Monday, the state may take possession of trump’s bank accounts and assets, including his midtown Manhattan residence, resorts, golf clubs, and aircraft.
Despite their best efforts, including “approaching about 30 surety companies through 4 separate brokers,” trump’s attorneys stated in a document on Monday that it was “a practical impossibility” to secure a bond for over half a billion dollars before the deadline of next week.
An appeal court may step in on Engoron’s behalf as their petition to halt the enforcement of his verdict is still pending.
According to a person close to the Trump family, trump’s legal team is considering all of their options, including how to challenge Engoron’s decision without posting the bond and what would happen if they are unable to raise the necessary funds. There is also the opinion that trump’s campaign may benefit greatly from the seizure of his assets or their selling at a “fire sale” price, as he has threatened.
The insider stated, “they’re looking to appeal on grounds that it’s a violation of the eighth amendment both the appeal itself and the actual requirements to have to put up this amount of money to appeal.” “They need to work out all those intricate details.”
A request for comment was not immediately answered by the trump campaign.
On behalf of Trump and his co-defendants, including his sons Donald Jr. And Eric, who have been in charge of the trump organization since their father took president in 2017, a motion to halt the $464 million judgment’s execution was filed on Monday.
Trump gets a pause:
By March 25th, an appeals court judges’ panel will determine whether or not the $464 million judgment can be set aside while Mr Trump files an appeal.
For the former president, who is undoubtedly keen to avoid having to pay up an estimated 16% of his reported $2.6 billion net worth, this would be the best-case scenario.
Mr Thomas claims that if Mr Trump lost the appeal, the fact that he possesses assets in the state of New York that can be confiscated might persuade a judge that he would have the financial means to pay the fine.
Mr Trump is attempting to get the judge’s ruling that he owes the banks that lent him the money, as well as millions in potential missed interest, overturned. The money was obtained from the sale of his golf course in New York and hotel in Washington, DC.
“I think it is very likely that he will get some kind of stay – unless they find some other stopgap option,” he stated to.
Trump secures a bond:
If Trump’s plea for a stay is denied, he may still be able to obtain a bond—for a price, but his attorneys warn that this may be challenging. If Trump loses his appeal and is unable to pay the fine himself, the bonding business will agree to pay it.
However, his legal team indicated that they had already made unsuccessful approaches to thirty corporations.
In order to obtain a bond, an individual must prove to the business offering the guarantee that they have sufficient liquidity to cover the amount, typically in the form of cash plus stocks or securities that may be sold rapidly.
According to Mariotti, the fact that he was unable to obtain a bond could indicate one of two things: either Trump is not as wealthy as the public has assumed, or he failed to make preparations for this potential ruling.
Letitia James, the attorney general of New York, responded to Trump’s request for a halt by pleading with the court to reject the former president’s “unreliable” allegations that he was unable to obtain a bond, claiming that he could obtain multiple smaller ones in the event that he was unable to obtain one bigger one.
A compromise option for Trump:
Experts predicted that the New York appeals court would present Trump with a compromise. While Trump challenges the decision, the court may order him to deposit a lower bond.
On the other hand, Trump has already requested permission from an appeals court to deposit a $100 million bond in its place. Attorneys for him said he would “suffer irreparable harm” if the entire amount had to be paid in advance.
The judge denied such request. As an alternative, Thomas suggested the court should require Trump to affix his signature to a declaration acknowledging that he owns property in New York and that he is aware that it might be taken if he loses the appeal.
In the end, Trump may file an appeal straight with the Court of Appeals in New York if he is denied a reprieve and the court does not present a compromise option.
However, he is operating under pressure because the deadline to pay the judgment or post a bail is March 25. In addition, hundreds of dollars in interest are being added to the penalty amount every day.
Trump pays the penalty:
If Trump couldn’t find a bond big enough to pay the entire judgment, he might try to settle it with his personal funds. He reported having $400 million in liquid assets to a court last year.
Experts advised him to try refinancing his properties or immediately sell some of his assets in order to raise the money needed to pay the remaining fine swiftly. However, selling real estate properties could take some time.
Alternatively, he may file for bankruptcy, which would spare him from having to pay the judgment. However, Thomas noted that declaring bankruptcy might be expensive and harm Trump’s standing during an election year. “Practically, it’s the most devastating thing that Donald Trump could ever do to his self-image,” he stated.
New York takes Trump’s assets:
James can start collecting the fee and seizing Trump’s assets on March 25 if he is unable to obtain a bond or pay the fraud judgment. If he doesn’t make the payment, she has promised to do so.
This is another worst-case scenario for Trump, according to experts, as he might lose some of his most well-known properties. They have the right to seize any of his structures, not only the ones in New York, including the 58-story Trump Tower and his huge Mar-a-Lago resort in Florida.
According to Thomas, James would probably hold off on selling these assets until the appeals process is finished. This is due to the fact that her office would have to reimburse Trump if she were to lose the appeal, as the properties they rapidly sold had lost value.
However, Mitchell Epner, an attorney who handles commercial litigation, stated that if James does sell the assets in the future, it will be through a court-ordered process, with the first $464 million going to New York state to satisfy the judgment and any remaining funds going to Trump.
Since none of Trump’s properties appear to be worth $450 million on their own, Mr. Epner stated that the state may confiscate various assets.
