Judgements filed in Westchester County by the New York attorney general’s office mark the first step towards the state’s attempted seizure of Seven Springs, Donald Trump’s private residence and golf club located north of Manhattan.
On March 6, state attorneys filed the judgements with the Westchester County clerk’s office. This was less than a week following Judge Arthur Engoron’s public announcement of his $464 million finding against Trump, his sons Eric and Donald Trump Jr., as well as the Trump Organisation.
As he seeks to gather additional funds for his legal fees and third bid for the White House, Trump’s image as a billionaire is directly impacted by the ruling against him and the difficulty the former president is having obtaining a bail while appealing the verdict.
A creditor’s initial move in seeking property recovery would be to enter a judgement. If the asset is going to be seized, more measures may be necessary, such as liens being placed on assets or initiating foreclosure proceedings. Other legal actions may also be required.
Manhattan, the site of many of Trump’s properties, including the tower itself, the penthouse, 40 Wall Street, the hotel he owns next to Central Park, and a slew of apartment buildings, is where the judgement was filed.
According to an examination of documents conducted by AWN on Thursday, no judgements have been made in the counties of Miami or Palm Beach in Florida, where Trump has properties such as Mar-a-Lago and the Trump National Doral Golf Club and resort, or in Cook County, Illinois, where Trump has a hotel in Chicago.
Trump has four days from now to pay the judgement in full or convince an appeals court to let him post a lesser sum or postpone the payment until after the appeal.
Trump claimed in Thursday’s updated Truth Social that the funding is “VERY EXPENSIVE” and that bonding corporations “could not do in such a high amount.”
Asset seizure would not be a simple or fast process. Over 300 separate limited liability corporations (LLCs) have been established by Trump to hold various assets, with control ultimately resting with his trust.
Due to their intricate structure and the fact that he is not officially the owner, a court order directing execution of specific properties against him would be unenforceable. Criminal justice and criminology professor Nikos Passas of Northeastern University warned that finding a solution would take time and effort.
She might potentially pursue the bank’s assets by obtaining bank levies. Liens on properties could be placed by her. According to Passas, there are numerous things she can do to try to gather.
He relies on the brand to generate income globally, not just in the US, and “all this is totally undermining it,” according to Passas. “In the end, I fear this might spell trouble for Trump in other jurisdictions as well as in New York, where his business is based.”
Legal counsel for Trump opposes the AG’s bond proposals
Separately, on Thursday, Trump’s legal team rejected multiple bail payment plans proposed by the New York attorney general’s office.
Trump may still be required to put up half a billion dollars in cash or stock—money he simply does not possess—even if he were to convince multiple underwriters to secure bonds totaling the judgement.
In the document, Trump’s legal team stated their belief that the New York attorney general’s office should not have the authority to contest their assertions.
Letitia James, the attorney general of New York, has threatened to seize assets unless an agreement is reached.
According to the attorney general’s office, Trump should have deposited real estate with the court instead of the billion-dollar bonds that major firms typically post.
“The proposal is unfair and unrealistic. No case law from New York is cited by the Attorney General to back up this claim. Whatever the case may be, the legal team representing Trump argued that the Attorney General’s plan to appoint an official to “hold real estate” was “functionally equivalent” to the requirement that the Supreme Court had previously established through the appointment of a monitor to oversee the business operations of the defendants.
The attorneys representing Trump further argued that the impending sale of the properties at a fire sale would result in irreparable harm since they would be unable to reclaim the assets even if they were to succeed in some part of the appeal.
They stated that the bond requirement was “profoundly unreasonable, unjust, and unconstitutional (under both the Federal and New York State Constitutions)” since the Attorney General and Supreme Court had wanted to impose it in order to allow an appeal.
Extensive responsibilities, including monitoring bond applications, are delegated to the monitor by the judge.
On Thursday, Engoron took on a broader role as the monitor for the Trump Organisation, including a closer look at the financial dealings of Trump’s real estate company.
The Trump Organisation was also directed by Engoron to provide the monitor with comprehensive details regarding its endeavours to secure judgment-covering bonds.
“Before the monitor is notified of any efforts to secure surety bonds, the Trump Organisation shall provide all requested or required financial disclosures, information given in response to such requests, representations made by the Trump Organisation regarding the bonds, personal guarantees given by any defendant, and any obligations of the Trump Organisation required by the surety,” the judge ordered.
The Trumps are required to follow the procedures outlined by Engoron within the next 30 days. One of those steps is to grant retired judge Barbara Jones, who is serving as the monitor, complete access to the company’s day-to-day financial operations.
“Depicting her assessment of the Trump Organization’s internal controls and shall recommend proper internal controls for the Trump Organisation.” The judge stated that the monitor is required to render a report outlining her findings in two months.
Additionally, he warned the Trumps that he may issue an order compelling them to follow the monitor’s suggestions.
In addition, Engoron granted the monitor the following powers: access to the Trump Organization’s monthly banking and brokerage statements; advance notice of any transfers exceeding $5 million; information regarding the formation or dissolution of business entities; and advance notice of any debt financing.
Trump’s Assets at Risk? New York Attorney General’s Aggressive Plan…
