Inside the Battle Over Trump Tower and Beyond: Bond Bungles, Legal Loopholes, and Asset Auctions”
why seizing Trump’s assets like Trump Tower won’t be quick or easy on Monday, Donald Trump’s lawyers revealed in a legal filing that Trump had failed to secure the $464,000,000 appeals bond he needs to avoid paying the half billion dollar dollars penalty as he appeals the New York civil fraud judgment against him. His lawyer said that about 30 different bond companies turned down
the former president’s request. Trump is now asking the five judge appeals court panel to pause enforcement of the civil judgment or to lower the bond amount to $100 million while the appeals court hears his case.
Trump is running out of time. New York Attorney General Letitia James has said that her office plans to collect from him this Monday, March 25. Unless Trump is able to obtain an appeals bond before then, New York prosecutors and law enforcement could initiate a wide ranging action to freeze and then seize Trump’s assets. Forbes estimates that Trump has about $400 million of cash and liquid securities, but some of that money is already encumbered. That is not available. Earlier this month
Trump obtained a $91.6 million appeals bond for the civil judgment against him, in which he was found liable for defaming and sexually assaulting E. Jean Carroll. MSNBC reported that in order to obtain that bond
Trump posted a Charles Schwab brokerage account as collateral. Those same funds cannot be used to collateralize a second bond. Trump’s attorneys say their client needs collateral of $557,000,000 to post
the $464,000,000 bond. Forbes spoke to a few lawyers with experience in these matters to find out what could happen next. Kevin O’Brien, a white collar trial lawyer in New York and a former assistant US attorney to
the Department of Justice, says, quote, I think he is in trouble. He doesn’t have the cash to pay for this. That’s why he’s in the pickle he’s in. Mark Zodderer, a trial and appellate lawyer in New York, says that if Trump fails to get his bond or get a favorable ruling from
the appellate judges, then the attorney general’s office will move swiftly to take control of Trump’s bank and brokerage accounts, as well as his various buildings and real estate holding companies. He says, quote, you do everything, you go after everything at once. Some assets will take longer than others. Spectators can expect a long and drawn out series of legal filings and appeals over a period of weeks, months and possibly even years. O’Brien explains that the attorney general is, quote, not going to take a stake and drive a sign through the front yard that says this building has been seized. It’s a legal process. It’s not like she’s going to be selling these properties next week. To initiate the process of seizing property,
the New York attorney general’s office can put liens on Trump’s assets and then give execution orders to county sheriff’s offices to sell any Trump owned properties in their counties through an auction. Trump has stakes in 13 New York properties that are collectively worth about $700 million after debt. Ten of those assets are in New York county, which encompasses Manhattan.
Two properties are in Westchester County, a golf course and a mansion, and another golf course is in Duchess county. Under liquidation proceedings, Trump’s other creditors, which all lent Trump money against his New York buildings, will also demand what they’re owed, potentially complicating the process
Then there’s tax authorities owed money by Trump who will want their share. For these reasons, James may start by liquidating buildings that are unencumbered, or even wait to sell some or all of the properties. Paul Golden, a New York lawyer specializing in real estate and commercial litigation, says, quote, one theory is that the attorney general will not actually sell any of Trump’s real property.