Was the plan all along to bankrupt Donald Trump?
It certainly seems that way, looking at the way things are going.
The lawsuit brought by New York’s Democratic Attorney General Letitia James, who ran on the platform of investigating Trump, is spiraling out of control. Even if he did everything she accused in her civil fraud lawsuit, this would have put the businesswoman-turned-president in an incredibly and truly unacceptable position.
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Many media outlets cover this story with glee, and few raise the question of whether this is a blatant overreach. As for the Democrats, even if it turns out they can’t beat him in the courts or at the polls, they can probably send him to the workhouse. (Actually, that’s not the case — he owns vast amounts of real estate — but the recent push could seriously damage the Trump Organization.)
Trump’s lawyers say they are facing “insurmountable difficulties” in being unable to post a $454 million bond, despite Trump approaching about 30 companies offering appeal bonds. It was revealed that there was.
Former President Donald Trump (center) greets attendees at the Super Tuesday Election Night Watch Party at the Mar-a-Lago Club on Tuesday, March 5, 2024 in Palm Beach, Florida, USA. (Eva Marie Uzcategui/Bloomberg via Getty Images)
The former president posted on Truth Social: “No one has ever heard of anything like this before. I will be forced to mortgage or sell great assets, probably at fire sale prices, and if I win the appeal, they will be let go. Does that make sense? Witch hunt, election interference! ”
James took a victory lap on the ABC show, vowing to enforce the penalty and saying, “I’m going to ask a judge to seize the property” if necessary.
Or it could give President Trump time to appeal.
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Mr. Trump was convicted of inflating the value of real estate assets to make loans easier. Judge Arthur Engoron had no doubts about him, and of course Trump constantly attacked him and Tish James.
As I pointed out at the time, many real estate companies have overly generous appraisals. The value of a particular property in a particular market is ultimately subjective. That’s why these company reviews, including Mr. Trump’s, include “due diligence” clauses that essentially require lenders to make their own judgments rather than relying solely on the borrower.
Republican presidential candidate and former President Donald Trump arrives at an election night watch party at Mar-a-Lago on March 5, 2024 in West Palm Beach, Florida. (Win McNamee/Getty Images)
However, there are some lines that should not be crossed. It didn’t look good that his Trump Tower triplex was valued at three times its actual size.
But overall, there were no identifiable victims. The bank made money and was happy. Trump’s company was happy. No one said they were messed up.
But again, for the sake of argument, let’s assume that the Trump Organization is guilty as charged. What would be a reasonable penalty?
Former U.S. President and Republican presidential candidate Donald Trump speaks at the Buckeye Values PAC rally in Vandalia, Ohio, on March 16, 2024. (Kamil Krzazinski/AFP via Getty Images)
The AG had originally asked for $250 million. She later increased it to $370 million. Mr. Engoron imposed a $355 million fine, gave Mr. James almost everything he wanted, and barred Mr. Trump from serving as an officer or director of any New York company for three years.
Do you think this is a fitting punishment considering no one lost a penny? Or do the judges and attorney general appear determined to wipe out his company?
Isn’t it a problem that the companies approached by President Trump said they didn’t have to deal with such huge bond demands?
Please note that this is not a criminal case.
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President Trump’s dilemma is that he doesn’t have the liquidity to post bail of that size, especially after posting $91 million in bail in a second defamation lawsuit filed by author E. Jean Carroll. . (The former president just sued ABC and George Stephanopoulos, arguing that if the judicial determination was sexual abuse, Trump is liable for rape, but the judge in the case was said she understood it to be rape.)
President Trump may be able to avoid foreclosure by selling luxury hotels and buildings, but buyers will have all the leverage to insist on lower prices, knowing the pressures he faces. .
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There is something abhorrent about this incident and the unprecedented punishment. It remains to be seen how Trump will fare on appeal, but it certainly convinced his supporters that his Democratic opponents were out to get him.
