Former President Donald Trump faces a pivotal moment in his ongoing legal feud with New York’s attorney general. With a looming deadline on Monday, Trump must provide a financial guarantee to settle the staggering $454 million civil fraud lawsuit against him.
His attempts to secure a bond for the full amount have hit a roadblock, with more than 30 underwriters rejecting the proposal, deeming it practically impossible due to the sum’s magnitude.
If Trump fails to meet the deadline, Attorney General Letitia James can initiate collection proceedings, potentially seizing his assets to settle the debt.
Assets at risk include Trump’s properties like the Trump Tower penthouse and golf courses, as well as his financial accounts and other holdings.
While such actions are common in cases where individuals cannot pay civil penalties, the process may involve legal hurdles and would not likely occur immediately.
Trump’s legal woes stem from a lawsuit filed by James’ office, alleging years of fraud in inflating his wealth on financial statements. Despite Trump’s denial of wrongdoing, a court ruled in favor of the state, ordering him to pay $355 million plus interest.
Trump’s appeals have so far been unsuccessful, leaving him facing mounting pressure to resolve the issue.
While Trump claims to possess substantial assets, much of his wealth is tied up in real estate, making it challenging to access sufficient cash. His recent sale of assets has injected some liquidity, but the exact extent of his current financial standing remains unclear.
Trump faces other legal battles, including a defamation lawsuit that resulted in an $83.3 million judgment against him.
The debt continues to grow larger due to accruing interest, adding urgency to Trump’s need for a resolution. Amid speculation about potential bankruptcy filings and the possibility of leveraging his new social media venture, Trump’s financial future hangs in the balance as the deadline approaches.
