Former President Donald Trump is due this Monday to pay $457 million (422 million euros) owed in his civil economic fraud case while he appeals the verdict that led to the gigantic debt. After New York State Attorney General Letitia James won the verdict, she avoided enforcing the judgment during a statutory period within which Trump could ask an appeals court for a stay.
That deadline ends this Monday, although James could decide to give Trump more time. The Republican candidate in November’s election has tried to avoid paying the entire fine while he appeals, but courts have so far rejected all of his demands.
James, a Democratic candidate, told ABC News last month that she would seek to seize his assets if Trump did not have the money to pay and was “ready to make sure he carries out the judgment.”
He did not provide any details about the process or specify which holdings he was referring to, and his office has recently declined to discuss his plans. It has since filed a judgment notice, a technical step toward a possible debt collection lawsuit.
Asset seizure is a common legal option when someone does not have the liquidity to pay a civil penalty. In Trump’s case, properties like his Trump Tower penthouse could become potential targets. his plane, his office building on Wall Street either its golf courses.
The attorney general could also investigate Your bank and investment accounts. Trump asserted on social media last Friday that he had nearly $500 million in cash but that he intended to use much of it for his presidential run. He has accused James and New York State Judge Arthur Engoron, both Democrats, of the search “Take my money so I can’t use it for the campaign.”
One possibility would be for James’ office to initiate legal proceedings to have local law enforcement seize the properties and then attempt to sell them. But that’s a complicated issue in the Trump case, says Stewart Sterk, a real estate law professor at Cardozo Law School.
“Finding buyers for assets of this size cannot be achieved overnight”he said, noting that at any ordinary auction, “the chance that people will be able to bid up to the actual value of the property is pretty slim.”
Tax fraud
Trump’s debt stems from a months-long civil trial last fall over government allegations against him, his company and top executivesThey grossly disclosed their assets in financial reports and defrauded bankers and insurers who did business with him. For example, for years the testimony estimated the value of his attic at almost three times its actual size.
Trump and his co-defendants denied any wrongdoing, claiming that the statements actually diminished his wealth, came with disclaimers and were not taken at face value by the institutions that lent to him or insured him. The discrepancy in the attic was simply a mistake by his subordinates, he said.
Engoron sided with the attorney general and ordered Trump to pay $355 million, plus daily interest. Some co-defendants, including his sons and company vice presidents Donald Trump Jr. and Eric Trump, were ordered to pay much smaller amounts.
The appeal does not suspend the sentence
Under New York law, filing an appeal does not generally suspend the execution of a sentence. But An automatic break occurs when the natural or legal person submits a deposit that covers the amount owed.
The former president’s lawyers said it was impossible for him to do so. They said the insurers wanted 120% of the judgment and would not accept real estate as collateral. That would mean tying up more than $557 million in cash, stock and other liquid assets, and Trump’s company needs some left over to run the business, his lawyers said.
Trump’s lawyers have asked an appeals court to stop the collection without requiring him to post bail. The Attorney General’s Office has objected.
However, on Friday, the former president received good news for his future finances. It received the green light to list its Truth platform, valued at $3 billion. A society in which Trump has 60%.