Donald Trump is rapidly approaching a Monday deadline to obtain a financial guarantee for the substantial amount of over $454 million that he is obligated to pay to the state. This payment is a result of a civil fraud lawsuit filed against him by New York’s attorney general, Letitia James.
In a recent statement, Donald Trump revealed that he currently possesses a substantial sum of nearly half a billion dollars in cash. However, rather than utilizing these funds to settle the $454 million civil fraud judgment against him in New York, the former president expressed his preference to allocate the resources towards his presidential campaign. Trump adamantly declared his intention to challenge the verdict vigorously, stating that he would pursue legal avenues all the way up to the U.S. Supreme Court if required. The state is prepared to take action to seize his assets if he fails to fulfill the substantial financial obligation.
Trump is attempting to convince a state appeals court to exempt him from the obligation of presenting financial guarantees to prove his ability to pay while he challenges the massive verdict. No evidence was provided to support his claim of having the necessary funds, and his legal team has argued that it would be impractical to tie up such a significant amount of cash in a bond while simultaneously operating his businesses and fulfilling other responsibilities.
Trump’s lawyers faced challenges in obtaining a bond for the judgment. In court filings on Thursday, they revealed that more than 30 bonding companies had rejected their requests. The underwriters insisted on cash, stocks, or other liquid assets as collateral, rather than real estate.
Trump’s lawyers have requested the state’s intermediate appeals court to reverse a previous decision that mandates him to post a bond that covers the entire amount for enforcement suspension. New York Attorney General Letitia James has opposed Trump’s request, advocating for the appeals court to insist on the full amount, as it would guarantee easy access to the funds if the verdict is upheld.
“I will take this fight to the U.S. Supreme Court if needed,” Trump declared in an interview with Fox News Channel on Friday. In a slight misrepresentation of the law, he asserted, “Your property cannot be seized before you have the opportunity to appeal.”
Seizing assets is a commonly used legal tactic when an individual is unable to access sufficient funds to cover a civil penalty, even if they have filed an appeal. It is important to note that filing an appeal does not automatically halt the collection process. In the absence of court intervention, Attorney General Letitia James would be well within her legal rights to initiate the seizure of Donald Trump’s property if he fails to make the required payment.
In a recent post on his Truth Social platform, Trump indicated that he possessed sufficient funds to fully cover the judgment. However, he expressed his belief that it was unnecessary for him to spend his money in that manner.
In an enthusiastic declaration, he revealed, “With sheer determination, exceptional skills, and a bit of good fortune, I currently possess a staggering sum of nearly five hundred million dollars in cash.” He emphasized his intention to allocate a significant portion of this wealth towards his presidential campaign.
Donald Trump, a Republican, had never hinted at the possibility of contributing to his own 2024 campaign. Prior to leaving the White House, he actively sought financial support from external donors. During his 2016 campaign, Trump frequently asserted that he was self-funding, despite the fact that he heavily relied on contributions from donors.
According to James, she is ready to take action to seize some of Trump’s assets. However, it remains uncertain how quickly this process will unfold. At this time, her office has chosen not to provide any further details or comments regarding their plans.
On Friday, shareholders of a publicly traded shell company granted approval for a merger with Trump’s media business, the operator of the popular social networking site Truth Social. This development is expected to further increase Trump’s already substantial personal wealth. With Thursday’s stock price in mind, it is estimated that his stake in the company could be valued at over $3 billion. However, there may be certain regulations in place that restrict the sale of newly issued shares for a minimum of six months.
