Trump’s Monday Deadline to Settle $457 Million New York Fraud Judgment
Trump New York Fraud Judgment:
Donald Trump is up against a Monday deadline to resolve a New York fraud judgment now surpassing $457 million. New York Attorney General Letitia James holds the power to commence the sale of Trump's assets if the payment is not made.
Trump's considerable real estate assets across Manhattan and Westchester County are currently under examination.
In February, a Manhattan court ruled that Trump must pay a $454 million fine for a decade's worth of fraudulent financial activities. This sum grows by $1 million in interest every nine days.
By this Monday, Trump is required to either settle the debt owed to New York, secure an appeal bond, or declare bankruptcy. Failing to meet any of these criteria could result in the seizure of his cash assets, with the potential for sheriff's departments to begin auctioning off his real estate and other tangible assets, starting in New York.
BREAKING: Court agrees to block collection of Trump’s $454 million civil fraud judgment if he puts up $175M https://t.co/B63VclVip8
— The Associated Press (@AP) March 25, 2024
Source: Twitter/The Associated Press
Trump Secures a $175 Million Bond
Donald Trump has obtained a $175 million bond following an appeals court decision in his New York civil fraud case. Trump and three top executives from the Trump Organization collectively face a debt nearing half a billion dollars to New York. However, they need only pay this entire amount if their appeal is unsuccessful.
Trump arranged for a $175 million appeal bond on Monday, after a Manhattan appeals court last week significantly lowered the nearly half a billion dollars he and his company owe the state.
Trump secured the bond through Knight Speciality Insurance Company, a Los Angeles-based firm, this Monday. Knight Insurance has verified that it provided Trump's bond.
The Appeal and Its Consequences
Following a decision by Judge Arthur Engoron in a New York civil fraud case last month, Trump and senior officials of the Trump Organization were ordered to pay $454 million plus interest for inflating their asset values.
With interest accruing at $112,000 daily, the total debt has escalated to $469 million. As of Monday, Trump personally owes about $458 million of this sum.
However, Trump was given a significant financial lifeline last week—the deadline for posting a bond for the nearly half-a-billion-dollar judgment—when an appellate court ruled that a $175 million bond would be sufficient for now.
This bond freezes the funds, making them inaccessible to both Trump and state officials while his appeal is in progress. The appeal's outcome will decide who ultimately retains the money.
Legal and Public Reactions
After the appellate court's decision on Monday, Trump's attorney, Alina Habba, issued a statement denouncing Judge Engoron's ruling as an excessive overstep and a slight to Americans.
"This crucial decision marks the first step in our battle against Letitia James and her prejudiced witch hunt against my client, which began before her tenure in office," Habba said, criticizing the New York Attorney General.
James' office had opposed the bond amount reduction, arguing that if Trump loses on appeal, it would be challenging for state officials to recover the remaining debt.
Trump's legal team has a history of using delay tactics in court cases, and the timeline for this appeal's conclusion is still uncertain. However, according to Monday's ruling, the earliest the appeal might start is in September.
Experts interviewed by Business Insider believe that it is unlikely the appeals process will be completed, and James will collect any money by Election Day, given the process's speed and the accumulating daily interest. This suggests Trump is taking a significant risk on winning his appeal.
If Trump's appeal fails, he and his associates will be responsible for the outstanding sum, plus continued interest. A spokesperson for Trump did not immediately respond to Business Insider's request for comment.
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