Former president Donald Trump is currently at the risk of losing his prized properties because of a $454 million judgment registered against him in the state of New York. To protect his properties from being seized, Trump has to pay the state $454 million in penalty.
The amount goes up by $87,502 every single day it remains unpaid. Trump’s properties are likely to be seized if he fails to get an appeal bond.
Lawsuit Registered in Westchester County
The judgment was registered on March 6, 2024 with Westchester County clerk’s office by New York Attorney General Letitia James’ office.
Trump currently owns multiple properties in Westchester County, including Trump National Golf Club and his Seven Springs estate.
The State Is Likely Going to Seize Trump’s Properties
James’ office has stated that the state is ready to start seizing Trump’s properties if he fails to post a bond that’s equivalent to 120% of the judgment by March 25, 2024.
James hasn’t initiated the process yet but it is clear that Trump’s properties are currently at the risk of being seized.
Trump is Making an Appeal
Trump has requested a New York’s appeal court to either waive the requirement to pay the bond amount entirely while he is fighting the verdict or to allow him to pay a smaller amount of $100 million.
James hasn’t agreed to this request. The court’s ruling on this request will come out very soon.
Trump’s Lawyer Hasn’t Commented Yet
Trump’s lawyer, Christopher Kise, hasn’t replied to a message that was sent to him asking for his comments on the situation.
In a March 18 filing, Trump stated that currently getting an appeal bond is almost impossible for him.
Insurance Companies Won’t Accept Trump’s Estate as Collateral
Trump isn’t able to get an appeal bond because insurance companies that provide such bonds are refusing to accept his real estate properties as collateral.
The insurance companies are not ready to take anything other than cash. Trump said he doesn’t have enough cash for the purpose.
Trump Might Have to Sell His Properties to Raise Money
Trump said if he doesn’t receive some kind of respite from the court, he will be compelled to sell his properties in haste.
By selling his properties, Trump will be able to raise some money for the appeal bond.
The State Can Begin Lien Procedures in Manhattan Soon
Since the verdict was finalized in New York, the state doesn’t need to register the judgment in New York County to begin lien procedures in Manhattan.
Trump’s properties in Manhattan include the iconic Trump Tower and his 40 Wall Street skyscraper. Both of these are not too far from James’ office.
James Disagrees with Trump’s Statements About Insurance Companies
It is clear from the court documents that James doesn’t find Trump’s claims about insurance companies refusing to take his properties as collateral convincing.
James stated that Trump has not provided any solid evidence that insurance companies would only accept cash to provide an appeal bond.
Kise’s Response to the Appeals Court
On Thursday, Kise responded to the appeals court in writing. He criticized James for being completely indifferent to Trump’s plight.
According to Kise, James isn’t acknowledging the difficulties private companies like the Trump Organization face when trying to get huge appeal bonds versus how much easier it is for large corporations to secure such bonds.
Trump Inflated His Wealth
Justice Arthur Engoron, the judge who had presided over Trump’s 11-week trial, had delivered a scathing ruling earlier this year.
Engoron concluded that Trump and his sons (Eric Trump and Donald Trump Jr.) had inflated Trump’s wealth by as much as $3.6 billion per year. This was done to secure more desirable loan terms from banks like Deutsche Bank AG and other lenders. Hence, the inflated numbers eventually reaped “illegal profit” worth hundreds of millions of dollars.
Engoron’s Ruling
Engoron’s scathing 92-page ruling discussed many brazen misdeeds committed by Trump, his business organizations, and his sons.
The document said about Trump and his sons, “Their complete lack of contrition and remorse borders on pathological. They are accused only of inflating asset values to make more money. The documents prove this over and over again. This is a venial sin, not a mortal sin. Defendants did not commit murder or arson. They did not rob a bank at gunpoint. Donald Trump is not Bernard Madoff. Yet, defendants are incapable of admitting the error of their ways. Instead, they adopt a ‘See no evil, hear no evil, speak no evil’ posture that the evidence belies.”
Not Taking Responsibility
The 92-page ruling also stated that Trump hasn’t taken any responsibility for his “misdeeds.”
According to the document, “When confronted at trial with the statements, defendants’ fact and expert witnesses simply denied reality, and defendants failed to accept responsibility or to impose internal controls to prevent future recurrences.”
An Independent Monitor Will be Overseeing the Affairs of Trump’s Company
It is now official that an independent monitor will be overseeing the internal activities of Trump’s company for the next three years.
Former judge, Barabara Jones, has been appointed to fulfill this role.
Trump’s Seven Springs Property Remained in Focus During the Trial
Trump’s Seven Springs property remained in focus during the trial. Engoron concluded that the property has been constantly overvalued over the years.
The judge also questioned Trump’s credibility and his real estate expertise. The document said, “Donald Trump professed to ‘know more about real estate than other people’ and to be ‘more expert than anybody else.’ He repeatedly falsified business records with the intent to defraud.”
