According to recent reports, former President Donald Trump may decide not to pay a $454 million bond in the New York civil fraud case brought against him by the state’s Attorney General Letitia James. Instead, some sources claim that the GOP frontrunner might not pay the exorbitant bond and allow James to seize Trump Tower.
Reports suggest Trump is having trouble coming up with the cash necessary to pay the excessive bond, where his legal team has labeled it a “practical impossibility” that he could find enough cash. While Trump may have a multi-billion dollar net worth on paper, making it seem easy for him to pay the bond, most of his wealth is tied up in illiquid assets such as his real estate holdings.
There is additional speculation that the former president could elect to go with a “nuclear option” and file Chapter 11 to protect his real estate portfolio. However, those familiar with the matter claim this could create financial issues given the fast-approaching 2024 election on the horizon.
However, another feasible option is for Trump to bypass the deadline to pay the bond and allow Letitia James to seize Trump’s assets, such as his various bank accounts and real estate. This could include Trump Tower, where he famously announced his presidential run in the 2016 election.
“Even if there is a taking, it doesn’t mean he can’t take it back later,” an inside source told the New York Post, playing off the idea that Trump could later recover his assets if he were to escalate the case to the Supreme Court. Although, this option does come with risks, as the Attorney General’s Office could sell the confiscated property to source cash.
“They are going after the money and that’s all he has a right to get back, not the buildings — unless the judgment is reversed before they are sold,” stated Adam Leitman Bailey, a New York-based attorney with extensive experience in commercial real estate.
Conservatives and business leaders have criticized the ruling in the civil fraud case, citing the implications it could have on the New York business environment. An inside source close to Trump said, “It will have a chilling effect on people who do business in New York because it could happen to anyone.” Watch news footage of Trump’s possible bond strategy below:
“There will be severe consequences — not an insurrection. People will stop doing business in New York. No one will take the risk, and lenders are now spooked. The real estate market is already a disaster, with office buildings worth a fraction of what they were once worth, and there are metastasizing effects when a large part of the city’s budget is from real estate,” a source said.
Furthermore, Trump has also reportedly explored the option of sourcing the bond cash through wealthy connections he has. “He’s not an ‘I’m passing the hat’ man — he doesn’t want pity or for anyone to feel sorry for him,” the source said. “He will do what he has to do. He has plenty of wealthy friends who would help him if asked, but he’s not asking, as far as I’m aware.”
Note: The featured image is a screenshot from the embedded video.
"*" indicates required fields