NEW YORK — Donald Trump is hurtling toward a critical deadline in his most costly legal battle to date. If the former president doesn’t come up with a financial guarantee by Monday, New York’s attorney general can start the process of collecting on the more than $454 million Trump owes the state in a civil fraud lawsuit.
Trump’s lawyers are trying to stop that from happening. They have asked a court to put collection efforts on hold while he appeals the verdict.
The presumptive Republican presidential nominee tried getting a bond for the full amount, which would have stopped the clock on collection during his appeal and ensured the state got its money if he were to lose.
But more than 30 underwriters said no, Trump’s lawyers told the court. They said getting a bond for such a large sum is “a practical impossibility.”
That’s raised the possibility that New York Attorney General Letitia James could start trying to enforce the judgment as soon as Monday.
Here’s a look at what that might look like, and what it would mean for Trump’s business empire.
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COULD NEW YORK REALLY SEIZE TRUMP’S ASSETS?
Yes. If Trump isn’t able to pay, the state “could levy and sell his assets, lien his real property and garnish anyone who owes him money,” Syracuse University Law Professor Gregory Germain said.
Potential targets could include properties such as his Trump Tower penthouse, Wall Street office building and golf courses. James’ office could also seek court permission to drain Trump’s bank accounts and investment portfolios, or sell off other assets like his planes, helicopters — or even his golf carts.
Seizing assets is a common legal tactic when someone can’t access enough cash to pay a civil penalty.
In a famous example, O.J. Simpson’s Heisman Trophy was seized and sold at auction to cover part of a $33.5 million wrongful death judgment. More recently, a city commissioner in Miami, Florida, fought to keep his home after a federal judge ordered it seized and auctioned off to help pay a $63.5 million judgment in a political retaliation case.
New York state seized three moving trucks in 1999 to help satisfy a $250,000 judgment against a company that ripped off customers. In 2006, the state seized a $342,000 investment account to cover part of a $2 million judgment against operators of illegal tire dumps.
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COULD IT HAPPEN SOON?
Not likely. State officials can’t just padlock Trump Tower. Any attempt to collect would be done through such legal actions as liens and foreclosures. But the state could lay groundwork by subpoenaing Trump for information about his assets.
James, a Democrat, recently told ABC that if Trump can’t pay, her office “will ask the judge to seize his assets.”
Potential targets could include marquee properties like his Trump Tower penthouse, Wall Street office building and golf courses. James’ office could also go after his bank accounts, investment portfolio, planes, helicopters — or even his golf carts.
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COULD TRUMP PAY IF HE WANTED?
Trump says he is worth several billion dollars, but much of it is tied up in his real estate holdings.
He reported having about $294 million in cash or cash equivalents like stocks on his most recent publicly available financial statement, but that document is outdated, covering the fiscal year ending June 30, 2021. It’s also one of the documents Engoron deemed fraudulent for exaggerating Trump’s wealth.
Since then, Trump has netted nearly $187 million from selling the lease on his Washington, D.C., hotel and the rights to manage a New York City golf course. His current cash position is unclear. During his civil fraud trial, he said he had more than $400 million in cash, but that is unverified.
Trump has other legal bills. In January, a jury ordered him to pay $83.3 million for defaming writer E. Jean Carroll after she accused him of sexual assault. Trump secured a $91.6 million bond this month to guarantee that judgment while he appeals.
Trump’s lawyers said freeing up cash by offloading some of Trump’s properties in a “fire sale” would result in massive, irrecoverable losses.