Former President Donald Trump fails to post the $454 million bond in his ongoing civil fraud trial, he could face severe consequences, including the potential loss of his cherished estate properties.
The civil fraud case against Trump, led by New York Attorney General Letitia James, centers on allegations that Trump inflated his net worth by billions on his financial statements to secure favorable loan and insurance terms. If Trump fails to post the required bond, his prized properties could be in jeopardy.
The bond is a requirement for Trump to appeal the financial penalty imposed on him. It’s an assurance that in case he loses the appeal, he can pay the penalty. The bond sum amounts to 120% of the judgment, which translates to $557.5 million according to Trump’s lawyers.
Trump’s attorneys have reported that he is facing “insurmountable difficulties” in securing the bond. Despite approaching over 30 firms, Trump has been unsuccessful in getting the financial backing.
One option for Trump could be to sell or mortgage his properties. However, this would not be without challenges. Trump’s lawyers argue that a “fire sale” of his properties would cause irreparable losses and that lenders may be hesitant to do business with him given his legal and financial troubles.
If Trump can’t come up with the money to post the bond by the deadline, AG James can start pursuing his assets, a measure she has already indicated she won’t shy away from.
In the event Trump fails to post the bond, there would be nothing stopping AG James from asking the court to seize certain assets to pay off the judgment amount.
Properties that Trump either owns or has a stake in that could be at risk include prominent New York buildings like 40 Wall St., the Trump International Hotel and Tower, Trump Park Avenue, and 1290 Avenue of the Americas.
If AG James decides to seize Trump’s assets, she would need to apply to the court where the property is located. It could trigger a lengthy legal process that could prove to be incredibly cumbersome.
