Ex United States President Donald Trump finds himself short on funds to ward off New York’s looming asset seizures, prompting an appeal to a court he’s long disregarded, hoping for a touch of leniency.
Trump’s legal team outlined the harsh financial truths confronting the prominent GOP presidential hopeful in a filing to the court on Monday, revealing extensive negotiations with around 30 potential financiers for the hefty half-billion-dollar bond obligation.
Should Trump neglect to produce the roughly $500 million needed for temporary suspension pending his appeal of last month’s order concerning his property’s illicit gains, Judge Arthur Engoron cautions that enforcement of the judgment may proceed.
This would grant New York Attorney General Letitia James the green light to commence the seizure and subsequent sale of Trump’s properties to offset his outstanding debt.
Trump’s legal counsel contends that the ruling is unprecedented, maintaining that underwriters seldom issue checks of such magnitude, even to individuals of substantial wealth.
Nonetheless, if we accept Trump’s lawyers’ assertion as truthful, it exposes a concerning acknowledgment of a potentially significant financial challenge for a leader who has crafted his image as a savvy real estate mogul with extensive financial resources.
James has made it abundantly clear that she will swiftly target Trump’s properties should he falter in producing the necessary cash.
“If he does not have funds to pay off the judgment, then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets,” she told ABC News last month.
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Legal experts said Monday they didn’t expect much leniency from the court.
“I think to treat Trump differently here undercuts the entire judgment, which is that no one is above the law, including a former president,” said Temidayo Aganga-Williams, a partner at law firm Selendy Gay. “To allow him to not have to put up the entire bond would basically say that he’s not on the hook the way anyone else would be.”
The properties potentially in James’s sights, the timing of any seizures, and the sequence of her actions remain uncertain. However, in an interview with ABC News, she stated, “I look at 40 Wall Street each and every day,” referring to the Trump-owned building in the Financial District.
James reveals that ten years ago, the Trump Organization obtained a bank-ordered appraisal of 40 Wall Street, which appraised the building’s value at $220 million.
Judge Engoron determined that Trump had inflated the building’s value. James stated that Trump had assessed the building at $735.4 million in 2015.
The potential revenue for New York from selling the building after seizure remains unknown. Opting for a speedy sale could lead to the property being sold at bargain prices if buyers sense an urgent need to sell.