In a recent development, a New York appeals court has granted a temporary block on the collection of former President Donald Trump’s $454 million civil fraud judgment. However, there is a catch – Trump must put up $175 million within 10 days to stop the clock on collection and prevent the state from seizing his assets.
The ruling comes as Trump appeals a judge’s finding that he lied about his wealth while building his real estate empire. New York Attorney General Letitia James had won the judgment and was expected to initiate efforts to collect it. However, if Trump meets the requirement to deposit $175 million, the collection process will be put on hold.
Trump’s lawyers had pleaded with the court to halt collection, arguing that it was practically impossible to find an underwriter willing to sign off on a bond for such a large sum. The court’s ruling, issued by the Appellate Division of the state’s trial court, provides some relief for Trump as he continues to fight the judgment.
If Trump fails to meet the deposit requirement, James has stated that she will seek to seize his assets to ensure the judgment is paid. While she hasn’t specified which holdings she may target, potential assets could include Trump’s Trump Tower penthouse, aircraft, Wall Street office building, or golf courses. She could also go after his bank and investment accounts.
Seizing assets is a common legal option when someone is unable to pay a civil court penalty. However, in Trump’s case, it may prove to be a complicated process. Stewart Sterk, a real estate law professor at Cardozo School of Law, explains that finding buyers for assets of this magnitude is not something that happens overnight. The chances of being able to sell the properties at their true value are slim.
Trump has been vocal about his opposition to the judgment and the potential seizure of his assets. He has accused James and Judge Arthur Engoron, who presided over the trial, of trying to take away his cash to hinder his potential 2024 presidential campaign. On social media, Trump claimed to have almost $500 million in cash but stated his intention to use much of it for his campaign.
The ongoing legal battle between Trump and the New York Attorney General’s office stems from a civil trial last fall. The state alleged that Trump and his company inflated his wealth on financial statements, deceiving banks and insurers. Trump and his co-defendants deny any wrongdoing, arguing that the statements undervalued his fortune and were not taken at face value by the institutions involved.
While the temporary block on collection provides some breathing room for Trump, the battle over the $454 million judgment is far from over. As the appeal process continues, the focus will shift to whether Trump can meet the deposit requirement to keep his assets safe from seizure. The outcome of this high-stakes legal dispute will have significant implications for both Trump and the New York Attorney General’s office.
