Potential Consequences of Trump Failing to Meet Monday’s Deadline to Post $454M Bond in Civil Fraud Case
Former President Donald Trump is facing potential consequences if he fails to meet the Monday deadline to post a $454 million bond in his civil fraud case. New York Attorney General Letitia James will be free to go after Trump’s properties if he cannot secure the bond. This could result in Trump losing his prized assets, including iconic New York buildings such as 40 Wall St., the Trump International Hotel and Tower, Trump Park Avenue, and 1290 Avenue of the Americas.
The hefty judgment against Trump was ordered by Manhattan Supreme Court Justice Arthur Engoron in February following a three-month trial. The AG’s office argued that Trump exaggerated his net worth on financial statements to obtain better loan and insurance terms. Now, Trump must either put the full judgment amount in escrow or secure a bond to show that he can pay the penalty if he loses his appeal.
Trump has been facing difficulties in securing the bond from over 30 firms. The bond would require him to post 120% of what he owes with collateral, amounting to $557.5 million. His lawyers have sought to lower the bond amount or get out of paying it altogether. If Trump can prove that he is likely to win his appeal, there may be a chance to get the bond amount lowered.
One option for Trump would be to sell off or mortgage his properties. However, legal experts believe that lenders may be reluctant to do business with him given his legal and financial problems. Trump’s lawyers have been unsuccessful in negotiations with firms that would accept his properties as collateral. If Trump misses the deadline, AG James can start going after his assets, including Mar-a-Lago.
If forced to pay the full amount immediately, Trump would have to sell off his properties himself to gather the money. If he fails to do so, James can ask the court to seize certain assets to pay off the judgment. This could include properties both within and outside of New York. The AG can also go after other types of assets such as bank accounts, wages, art, and rent on buildings.
The potential seizure of Trump’s properties by James could launch a lengthy legal process. It would take time before Trump would actually lose any of these properties. However, if James seeks to seize assets in other states like Mar-a-Lago, she would have to make an application with the court where the property is located.
In conclusion, failing to meet Monday’s deadline to post a $454 million bond in his civil fraud case could have severe consequences for former President Donald Trump. New York Attorney General Letitia James would be free to go after Trump’s prized properties, potentially resulting in him losing iconic buildings and other valuable assets. The legal process would be lengthy and cumbersome, but if Trump cannot secure the bond, he may face significant financial losses.
