New York Attorney General Letitia James is free to begin going after former President Donald Trump’s valuable assets if he fails to meet deadline to post $454 million bail in civil fraud case It will be possible.
President Trump, 77, filed papers with the Court of Appeals on Monday seeking to have bail waived as he fights a huge judgment from February that accrues $112,000 in daily interest.
The 2024 Republican presidential candidate has approached more than 30 companies to secure bonds, to no avail, and faces “insurmountable difficulties” in securing financial backing. The lawyers said in their filing.
Manhattan Supreme Court Judge Arthur Engoron filed a three-month trial in which the AG’s office argued that President Trump overstated his net worth by billions of dollars a year in financial statements to get better terms on loans and insurance. In February, he ordered a heavy sentence against the real estate tycoon.
Why does Trump have to post $454 million bail?
President Trump has said he intends to fight the Engoron ruling, but if he loses the appeal, he will have to either put the entire amount of the judgment in escrow or secure bail to show he is worth the money.
“If you’re trying to appeal a fine, the court wants to make sure you can pay the fine if you ultimately lose,” said Kevin J. O’Brien, a former prosecutor and current defense attorney. talk. New York State added that this is “standard procedure.”
“This is an attempt to keep the appellants honest,” O’Brien explained.
“The real challenge is the sheer scale of the judgment.”
Lawyers say the bond would require Mr. Trump to pledge 120% of what he owes, totaling $557.5 million.
President Trump previously sought to lower the bond amount to $100 million, but now he is aiming to eliminate bond payments altogether.
Mr. O’Brien said that if Mr. Trump could prove in court that he was likely to ultimately win his appeal, “there could be an argument” for a lower bail amount.
Could President Trump sell or foreclose on his real estate?
Mr. Trump argued that he should not be forced to sell properties in a “fire sale” to raise cash because selling them cheaply would result in irreparable losses that could never be recovered. . At the same price if he wins the final appeal of the judgment.
President Trump may seek to foreclose on any of his properties to raise large bonds, but legal experts say the move won’t come without problems.
Mr O’Brien said he may already be “on the edge of his mortgage” and given his legal and financial problems and all the “surveillance” currently being placed on him, lenders are He said there could be “reluctance to do business with him.”
Trump’s lawyers said he had been negotiating with 30 companies to secure large deposits, but all negotiations fell apart after the companies refused to put up his real estate as collateral.
“That’s right,” O’Brien said. “It’s unlikely that the appellate division will move just because they have to sell assets.”
“I don’t think he’ll be very successful,” O’Brien told the appeals court. “The Appellate Division does not intend to overturn Judge Engoron’s decision lightly.”
What happens if President Trump doesn’t meet the deadline?
If President Trump’s request to suspend bail on Monday is not approved by the Appellate Division of the First Department and the funds cannot be raised by then, Attorney General James could begin pursuing his assets. She said she would comply. I won’t hesitate to use it.
If Trump has to cough up all the money by Monday, “he’ll have to start selling real estate himself to pay off the remaining bond,” said New York real estate lawyer Melissa Levine.
“If he fails to do so, nothing will stop Letitia James and the state of New York from asking the court to seize certain assets to pay the judgment amount,” she added.
Mr. Levin and another New York civil attorney, Imran Ansari, said the audit firm could go after Mr. Trump’s properties in the Empire State and elsewhere.
And she may go after other types of assets, including bank accounts, wages, art, accounts receivable, building rent and money market accounts, Levin said.
“The AG believes he can tax all of Trump and the Trump Organization’s assets, including many real estate holdings in and out of state, including Mar-a-Lago,” Ansari said.
“The AG may assert a lien on the property and may file or request an estate enforcement action requiring Mr. Trump’s property to be seized and sold and the proceeds to be used to repay the judgment,” it added. .
What Trump property can James seize?
Properties owned or invested in by Mr. Trump include the Big Apple’s iconic buildings 40 Wall Street, Trump International Hotel & Tower, Trump Park Avenue, and 1290 Avenue of the Americas. Trump owns a 30% interest in the company.
The Trump Organization has owned the land lease in the Trump Building at 40 Wall Street since 1995 and rents out space there, making him more of a landlord than an owner.
He owns the Trump International Hotel and portions of the Tower at One Central Park West, including the parking lot, room service kitchen, valet parking, lobby bathrooms, restaurant space, and single units. have.
Trump’s 30% profit share in the 1290 Avenue of the Americas building will last until 2044.
President Trump owns the 120-unit building at 502 Park Avenue after purchasing the former hotel in 2001 for $115 million.
The real estate holding company that bears his name also owns the retail and commercial portion of Trump Tower at 724 Fifth Avenue, and the former president also owns a penthouse triplex. According to Curved.
O’Brien said if the AG seeks to seize property in another state, such as Mar-a-Lago, Fla., the application must be filed in the court where the property is located.
Mr. O’Brien said that if Mr. James were to target Mr. Trump’s valuable assets, it could trigger a lengthy legal process that would be “very onerous.”
“It will be a long time before President Trump loses these assets,” the former prosecutor added.
