Donald Trump, the former president and presumptive Republican nominee for the 2024 election, has publicly stated that he possesses nearly half a billion dollars in cash reserves. Despite this significant claim, he has expressed a staunch refusal to use these funds to satisfy a $454 million civil fraud judgment handed down in New York. The judgment, which arises from allegations of repeated misrepresentation of wealth to secure favorable loan terms and deals, has become a central point of contention as Trump prepares for his presidential campaign.
Trump’s resistance to paying the judgment is compounded by the fact that he is fighting to have a state appeals court waive the requirement for him to provide financial assurances while he appeals. In essence, Trump is caught in a complex legal battle where New York Attorney General Letitia James has positioned herself to potentially begin seizing his assets should the debt remain unpaid.
Without providing evidence for his cash claim, Trump has communicated through his lawyers that it would be impractical to lock up such a large amount of cash as a bond. His legal team has faced significant obstacles in securing a bond, as underwriters demand liquid assets for collateral, not real estate. More than 30 bonding companies have reportedly rebuffed their attempts.
In a scathing critique of the ongoing legal proceedings, Trump lambasted the judge overseeing the case as a “political hack” known for dubious decisions, and accused the attorney general of orchestrating a biased attack against him. Trump vehemently denied any wrongdoing, asserting that the exorbitant sum demanded in the case, alongside unreasonable interest charges, was a ploy to unjustly strip him of his assets.
“I did nothing wrong except win an election in 2016 that I wasn’t expected to win, did even better in 2020, and now lead, by a lot, in 2024. This is communism in America.” Trump added in a post, “No trial, no jury, no crime, no victim, only a crooked judge and a corrupt, Trump hating attorney general who takes her orders directly from the White House. Election interference at a level never seen before!!!”
Additionally, reports emerged on Friday indicating a novel fundraising arrangement between Trump and the Republican National Committee (RNC), where donations are initially directed towards Trump’s campaign and a political action committee (PAC) named Save America, which in turn covers his legal expenses, before any portion is allocated to the RNC.
This unconventional allocation of funds to the Save America PAC was disclosed in an invitation to an event in Florida on April 6, obtained by the Associated Press. This structure increases the likelihood of donors’ contributions being utilized for Trump’s legal fees, which have amounted to at least $76 million over a span of two years.
The fine print of the agreement specifies that donations will first be allocated to maximize contributions permissible under federal law to Trump’s campaign, which amounts to $6,600 for individuals contributing during both the primary and general elections. Any surplus funds are then directed to reach the maximum contribution limit of $5,000 for Save America. Any remaining excess is subsequently distributed to the RNC and state parties.
Relevant articles:
– Trump says he has nearly $500 million in cash but doesn’t want to use it to pay New York judgment
– Trump says he has nearly $500m in cash but doesn’t want to use it to pay New York judgment, The Boston Globe, Fri, 22 Mar 2024 15:40:00 GMT
– Trump claims to have ‘almost $500m in cash’ despite inability to pay bond, The Guardian US, Fri, 22 Mar 2024 18:27:00 GMT
– Trump Says He Has Nearly $500M In Cash As Bond Deadline For NY Civil Fraud Judgment Approaches, The Daily Wire, Fri, 22 Mar 2024 15:21:20 GMT