Former President Donald Trump is facing the daunting prospect of losing key assets from his real estate empire as he scrambles to meet the terms of a bond linked to a staggering $454 million civil fraud judgment. Trump, who has decried the process as politically motivated, has claimed that meeting the bond’s requirements is an impossible feat, given that underwriters are demanding cash rather than accepting property as collateral.
A revelation in court documents on Monday indicated that Trump’s efforts to secure a bond through underwriting had hit a wall, with no insurance company willing to back him. While the full amount of the judgment does not need to be paid to appeal last month’s order by Judge Arthur Engoron, the failure to secure the bond exposes Trump’s assets to New York Attorney General Letitia James’ enforcement actions even as his appeal progresses. The civil fraud case, brought by James, accuses Trump of inflating his wealth on financial statements to obtain better loan terms and insurance deals.
Trump took to Truth Social to voice his frustrations, calling Judge Engoron “a true Trump Hater” and bemoaning that the bond requirement would necessitate either mortgaging or selling his properties. “If I sold assets, and then won the Appeal, the assets would be forever gone,” Trump expressed, underscoring the irreversible nature of such asset liquidation.
The legal battle has put Trump’s financial maneuvering into sharp focus, with his attorneys claiming that his assets are indeed worth more than the bond amount. They are pushing for the New York appeals court to delay the posting of the bond until the appeal on Engoron’s judgment order is resolved.
James’ office, however, has cast doubt on Trump’s ability to cover the judgment if his appeal fails, emphasizing the “significant risk” that Trump may not be able to pay—or might try to dodge payment. The concern is not unfounded; previously, Trump’s entities have undertaken significant business actions, such as transferring millions in cash and relocating entities, without informing an appointed independent monitor, thereby raising the specter of asset evasion.
On the other side of the debate, Richard Epstein, a property rights law professor at New York University, concurs with Trump that the judgment is “excessive” and lacks a methodological basis. “It is a horrific situation where an utterly bogus judgment can insulate itself from appeal by imposing excessive damages,” Epstein stated. Trump’ echoed this sentiment, arguing that Engoron pulled “a number out of THIN AIR” and that posting the bond sum before an appeal is “CRAZY.”
Despite the pressures, if Trump fails to secure the bond or a stay on asset collection by March 25, James’ office could commence the seizure of his properties. This situation raises a host of complex legal scenarios that could see the former president either losing his prized assets or being forced into drastic financial decisions, such as possible bankruptcy filings, to protect his holdings.
Trump’s legal tribulations don’t end with this case; he’s also embroiled in a defamation case with writer E. Jean Carroll, for which he has managed to post a bond. How Trump navigates these legal challenges, particularly in the face of his 2024 presidential campaign, remains a subject of intense scrutiny.
Relevant articles:
– Donald Trump fears he could lose his prized assets “forever”
– There’s A ‘Significant Risk’ Trump Won’t Pay $454 Million If Bond Is Paused, AG Argues In Fraud Case, Forbes, Tue, 12 Mar 2024 07:00:00 GMT
– Key questions as Trump hurtles toward deadline to pay $454 million fraud penalty, CBS 4 Indianapolis, Tue, 19 Mar 2024 23:17:05 GMT
– Donald Trump At Risk Of Losing Assets After Filing Appeal Over $454M Judgment, Yahoo Entertainment, Mon, 26 Feb 2024 08:00:00 GMT