Major Asset Seizure Likely as Trump Can't Afford Bond for NY Fraud Case
Major Asset Seizure Likely as Trump Can't Afford Bond for NY Fraud Case
"Trump owes this money because he fraudulently misrepresented the value of his assets—and now (oops) apparently no one will accept those assets as collateral."
Less than a month after New York Attorney General Letitia James said she would be willing to seize former Republican President Donald Trump's assets if he is unable to pay the $464 million required by last month's judgment in his civil fraud case, Trump's lawyers disclosed in court filings Monday that he had failed to secure a bond for the amount.
In the nearly 5,000-page filing, lawyers for Trump said it has proven a "practical impossibility" for Trump to secure a bond from any financial institutions in the state, as "about 30 surety companies" have refused to accept assets including real estate as collateral and have demanded cash and other liquid assets instead.
To get the institutions to agree to cover that $464 million judgment if Trump loses his appeal and fails to pay the state, he would have to pledge more than $550 million as collateral—"a sum he simply does not have," reportedThe New York Times, despite his frequent boasting of his wealth and business prowess.
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I'm not sure I understand how this happens. He has to post the value in order to appeal, right?
I would have thought the situation was either Trump mortgages a property or gets a bond...or he doesn't get to appeal. I could see the properties getting seized if he doesn't have the funds and the appeal is thus forfeit so the money has to go to the state against his will, I'm not following how the properties get seized and also he still gets to appeal.
I looked into this the other day. To my understanding, he can still appeal without posting the bond. The bond simply keeps the plaintiff from seizing assets before or during the appeal process.
The bond simply acts as a deposit in the event the defendant loses the appeal, which is why there is interest added from the start.