Article Summary –
Donald Trump faces a financial crisis and legal obligations including 88 criminal charges and at least one criminal trial expected before Election Day. After losing a civil fraud trial in New York earlier this year, Trump has failed to secure help from at least 30 companies to post a bond in excess of $464 million, now facing the “practical impossibility” of coming up with the money before the state’s imminent deadline. New York Attorney General Letitia James has stated her office is prepared to target Trump’s assets to begin collecting the money owed to the state from fraudulent manipulation of his financial statements, potentially seizing his properties, freezing his bank accounts, and collecting rent from tenants at Trump’s properties.
Republican Nominee for President Might Face Financial Crisis
The Republican Party’s nominee could be facing a financial crisis along with a slew of legal obligations, potentially including 88 criminal charges, before the Election Day. Notably, at least one criminal trial and verdict is anticipated before voters cast their ballots in November.
Latest Developments in Trump’s Legal Battle
According to a court filing on 18 March, former president Donald Trump has sought financial help from at least 30 companies who can post a bond exceeding $464 million after he lost a civil fraud trial in New York. However, none of them were able to assist, and he now faces the practical impossibility of raising the funds prior to the state’s upcoming deadline to enforce the judgment on 25 March.
In addition to the financial crisis, the GOP’s presidential nominee could be a convicted felon on the hook for tens of millions of dollars he doesn’t have when voters vote in November. Furthermore, Trump can’t discharge debts incurred by fraud by filing for bankruptcy.
Trump’s Legal Team Appeals
Last month, Trump’s legal team succeeded in halting a part of the judgment that would have hindered his borrowing ability. They are now appealing the financial portion of the judgment, even if he cannot afford the bond that would halt collections during the appeal.
Consequences of the Court Ruling
A surety bond acts as a paid guarantee to delay enforcement during an appeal. However, companies Trump approached have been unwilling to accept his properties as collateral after a judge found him liable for fraudulently inflating the value of his real estate portfolio. These companies only accept cash or cash equivalents and require collateral of approximately 120% of the judgment amount, roughly $560 million.
New York Attorney General Targets Trump’s Assets
New York Attorney General Letitia James has expressed readiness to target Trump’s assets to begin collecting on what was determined as ill-gotten gains from manipulated financial statements used to secure favorable terms from banks and insurers. In February, she stated her office is prepared to ensure that the judgment is paid to New Yorkers. James would likely need a court order to proceed.
Trump, his adult sons, former Trump Organization executives, and related entities were ordered to pay over $464 million. The defendants were found to have engaged in a long-lasting scheme to fraudulently inflate the value of Trump’s net worth and assets in financial statements provided to banks and lenders to secure better financing terms. The total amount now owed back to the state is roughly $364 million, with an additional $100 million in interest.
James noted that if Trump doesn’t have the funds, her office will ask the judge to seize his assets, starting the process of taking possession of Trump’s properties. However, legal experts believe the attorney general is more likely to first search his banks to identify their contents.
Trump’s Fundraising Efforts Amid Legal Battles
Despite his legal challenges, Trump continues to raise money for his campaign. During a deposition last year, he claimed to have more than $400 million readily available. However, this figure was alleged to be inflated by James. Trump has secured nearly $92 million in his appeal of a defamation verdict from E Jean Carroll’s lawsuit. His campaign fundraising arms are collecting millions of dollars from supporters to pay off his legal fees, and he is also courting billionaire donors while reorganising the GOP’s financial framework to support his campaign.
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