New York Attorney General Letitia James has initiated the process to potentially seize former President Donald Trump’s assets in Westchester County, New York, as a part of the $464 million judgment in Trump’s civil fraud trial.
State officials have filed the judgment from Trump’s civil fraud trial in Manhattan with the county clerk’s office in Westchester. This paves the way for James to proceed with taking possession of Trump National Golf Course in Briarcliff Manor and Seven Springs, a private estate in Bedford, if Trump is unable to secure a bond.
According to his lawyers, Donald Trump is currently facing significant challenges in obtaining a bond to cover the $464 million judgment imposed by Judge Arthur Engoron. They have sought permission from an appeals court to either post a smaller bond or waive the requirement altogether.
If Trump fails to obtain a financial guarantee before the deadline on Monday, James has the authority to initiate legal proceedings to seize Trump’s bank accounts and physical assets in Manhattan and Westchester through liens and foreclosures.
ABC News reached out to the Trump Organization for comment, but a representative did not respond.
In a letter sent to New York’s Appellate Division on Thursday, lawyers representing Trump reaffirmed their stance that obtaining the bond is an unattainable task.
According to Clifford Robert, attorney for Trump, he criticized James’ suggestion on Wednesday, calling it “illogical,” “unconstitutional,” “impractical,” and “unjust.”
In the letter, Robert expressed his concern over the Attorney General’s argument that the Defendants should be compelled to sell their highly valuable real estate holdings at a significantly reduced price, referring to it as a “fire sale.”
Robert dismissed the suggestion that Trump could transfer his properties to the court, deeming it impractical and “functionally equivalent” to the court-appointed monitor overseeing the Trump Organization.
According to him, James’ proposal of Trump obtaining smaller bonds would not effectively address Trump’s current situation. This is due to the fact that lenders are still hesitant to provide a bond that utilizes both cash and property as collateral.
According to the letter, Defendants’ Affirmations explain that even if multiple sureties were involved, the separate bonds would still need to be fully collateralized with cash or cash equivalents totaling more than $557 million.
In a statement on Thursday, Robert argued that it would be both illogical and unconstitutional to force Defendants to sell their properties, particularly in a rush or at a lower value, just to be able to appeal the unjust Supreme Court judgment. He emphasized that such a requirement would result in irreparable harm if the Defendants ultimately prevail, which is highly probable, on appeal.
In February, Judge Arthur Engoron of New York issued a ruling that required Trump to pay $464 million in disgorgement and pre-judgment interest. The judge found Trump and his adult sons liable for engaging in “numerous acts of fraud and misrepresentation” with the intent to inflate his net worth and secure more favorable loan terms. Despite denying any wrongdoing, Trump has filed an appeal against the decision.
Earlier this week, Trump’s lawyers made the argument that the former president faced difficulty in obtaining a bond for the judgment. They stated that he had been turned down by more than 30 insurance companies because of the large amount involved and his requirement to use properties as collateral.
