Donald Trump Admits He Cannot Afford To Pay $454 Million New York Fraud Judgment
After years of cultivating a reputation about his vast wealth, Donald Trump is now admitting he cannot pay the $454 million judgment a federal court in New York has ordered him to pay after he lost his New York fraud trial where he was accused of falsifying his financial records to either get better loans or pay lower taxes on his properties.
In a court filing, the former president's attorneys wrote that he faces "insurmountable difficulties" in trying to secure the money to pay that massive penalty he incurred for defrauding the banks and the state.
As the New York Times noted, this could mean that the state of New York freezing some of his bank accounts and seizing some of his most famous assets could actually happen. Given that New York Attorney General Letitia James has already vowed to do so, the possibility is even higher.
So far, Donald Trump has been trying and failing to secure a full bond needed to appeal such a massive ruling, admitting that it was a "practical impossibility" despite "diligent efforts." Trump's lawyers stated that he has approached about 30 companies that provide appeal bonds, which have all rejected him.
This is because the company providing Trump that bond would essentially have to pay that penalty if he ever lost the appeal and failed to pay. Trump also has to pledge cash and other liquid assets as collateral in addition to paying the bond company a fee as high as $20 million.
However, Trump has one big problem with his requirements to secure that bond: He does not have enough liquidity to obtain the bond. Any company that would take him in would have to require him to pledge more than $550 million in cash and securities as collateral, which he does not have.
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Donald Trump May Be Forced To Sell Properties in a Fire Sale To Pay for New York Fraud Bond
While Donald Trump's net worth is in the billions, and he has repeatedly boasted about it, this is actually based on the value of his real estate, such as Trump Tower and Mar-a-Lago. In other words, while his value is on his properties, he does not have that much cash on hand to pay for such a large bond.
According to Mother Jones, the former president's lawyers have already noted a possible solution: a fire sale of some of his properties. Potential buyers already know he is strapped for cash, which may force Trump to sell much lower than usual.
Donald Trump's Assets May Be Seized by New York State If He Cannot Pay
Should Trump not be able to secure a bond before the March 25 deadline, the state of New York could seize his assets and sell them off to pay for that judgment, with Letitia James previously saying, "I look at 40 Wall Street each and every day."
As Common Dreams reported, Trump being found liable for fraudulently duping his lenders is not going well with lenders who are now weary of lending him money, especially since he now has a record of lying about his properties' values.
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This article is owned by Latin Post.
Written by: Rick Martin
WATCH: Trump is unable to make $464 million bond - CNN
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