The Republican candidate facing President Joe Biden may face a financial crisis and legal problems, including 88 criminal charges, with at least one criminal trial and a verdict expected before Election Day.
In a March 18 court filing, Donald Trump’s lawyers said they have sought help from at least 30 companies since losing a civil fraud case in New York earlier this year. Can post bonds of more than 464 million dollars.
But none of them have been able to, according to their lawyers, and it is now ‘virtually impossible’ for them to raise the money before the state’s Monday, March 25, deadline to enforce the judgment against them.
The unusual circumstances also raise the possibility that the GOP presidential candidate could be guilty of tens of millions of dollars he doesn’t have when voters go to the polls in November.
Mr. Trump can’t even get rid of fraudulently acquired debts by filing for bankruptcy.
Argument to block implementation of Trump’s decision
Donald Trump got some relief last month when a judge agreed to block part of a ruling that would have made him unable to borrow money.
His lawyers sought this relief to get a bond.
Now, his legal team is asking a state appeals court to block enforcement of the financial portion of the judgment, even though he can’t afford a bond that would temporarily halt collection while the entire judgment is appealed. will
His lawyers have requested oral arguments to present their case.
Trump may continue to try to borrow money
A surety bond serves as a type of payment guarantee to stay enforcement during an appeal.
However, according to his legal team, the companies he has approached are not ‘willing’ to use his star properties as collateral after a judge ordered them to fraudulently sell their real estate portfolios. It has been declared responsible for increasing the price.
These companies either ‘do not have the financial strength for such a large bond’ or are ‘unwilling to accept the risk associated with such a large bond.’
These companies ‘will only take cash or cash equivalents’, such as marketable securities, and will typically ‘require collateral of approximately 120 percent of the judgment amount’, which in this case amounts to approximately $560 million.
According to Trump’s lawyer, he will then receive a premium of about 2 percent annually on the surety bonds, which will have an upfront value of more than $18 million.
That money will not be recoverable, even if Mr Trump wins his appeal.
Letitia James may try to target these assets
Last month, New York Attorney General Letitia James said her office was ready to target Trump’s assets to begin collecting on debt a judge ruled the state owed the former president. declared, of the so-called ‘ill-gotten gains’ they took as a result of their manipulated financial statements used to obtain favorable terms from banks and insurers.
“We are ready to make sure that the payouts that result from the decision go to New Yorkers,” he said in February.
Miss James would likely need a court order to do so.
46 million at the end of a three-year investigation and months-long lawsuit against Trump, his adult sons, two former Trump Organization executives and entities associated with brand-building properties in the Trump real estate empire for fraud in the family business. A payment of more than 100,000 dollars was ordered.
The defendants were found to have engaged in a decade-long scheme to fraudulently inflate their net worth and asset values in their annual financial statements in order to obtain more favorable financing for some of their properties. Terms were given to banks and lenders to obtain.
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The total amount owed to the state now – money that is effectively seized as ‘ill-gotten gains’ – is about $364 million, including an additional $100 million in interest. is
Post-judgment interest is accruing at a daily rate of nine percent per annum, or more than $114,000 for all defendants, including about $112,000 owed to President Trump alone.
President Trump could theoretically start selling his properties to cover the money, but his lawyers say his real estate assets, such as Mar Lago and 40 Wall Street in New York, are worth more than the money at stake. There is more.
James has said that if President Trump doesn’t have the funds, “we will seek to enforce the judgment in court and ask the judge to seize his assets.” A decision that appears to signal that his office is beginning the process of seizing Mr. Trump’s properties.
Since the civil fraud case was filed in Manhattan, where Trump Tower and 40 Wall Street are located, a judgment has already been issued there.
However, the large amount of debt owed on these properties means that they are most unlikely to be foreclosed upon.
Instead, filings filed March 7 show that state attorneys have filed a judgment in the Manhattan civil fraud case with the county clerk’s office in Westchester County, New York, where the former president’s Seven Springs home is located. State and Trump National Golf Club.
Law enforcement agencies will not go door to door with locks. James would also need court approval to target properties linked to President Trump.
Former U.S. President and Republican presidential candidate Donald Trump stands with North Dakota Governor Christie Noem during a Buckeye Values PAC rally in Vandalia, Ohio, March 16, 2024 (File Photo/AFP)
According to legal experts, the attorney general will first search their banks, which would first require the courts and creditors to identify their contents.
The state could then send a notice to President Trump’s banks asking them to freeze their accounts and freeze cash, bonds or other assets held in safe-deposit boxes in order to receive court-ordered money. provide
The state could also collect rent from tenants sitting in President Trump’s properties to begin collecting payments from them.
Trump will continue to raise money during the campaign
During a taped statement in the case last year, President Trump claimed he had more than $400 million in cash.
In a 2021 financial statement, it was said that he had about $294 million in cash. It is the central and most recent available trial document in the fraud case
President Trump’s legal battles have raised significant questions about his finances, how and where he plans to raise millions of dollars for his lawsuits, and whether a re-election bid could help him avoid legal trouble. can
He has already won nearly $92 million in damages in his appeal of a defamation judgment against the former president stemming from E.Jean Carroll’s lawsuit.
He was required to deposit 110 percent of the $83.3 million judgment to prevent collections pending an appeal.
President Trump obtained the loan through the Federal Insurance Company, a subsidiary of Chubb Corporation, whose CEO was appointed to the Trade Advisory Committee during the Trump administration.
But that company doesn’t seem ready to support his bond in their fraudulent decision.
Chubb told Trump the company was not willing to accept real estate as collateral, according to Mr. Trump’s lawyer.
President Trump’s campaign fundraising has raised millions of dollars from his supporters to pay for his legal fees and the lawyers who work on his cases.
Meanwhile, he is attracting billionaire donors and reshaping the GOP’s financial system into one that can finance his campaign.
They are also expecting big profits from the long-anticipated merger between their Truth Social parent company and publicly traded shell company Digital World Acquisition Corp.
The ‘DJT’ stock symbol, which is set to return to Wall Street this month, was previously used by Trump Hotels and Casino Resorts for the publicly traded company, which went bankrupt in 2004.
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