Trump Organization Faces Severe Legal Battle in New York

TFD – Explore the intense legal battle surrounding the Trump Organization in New York, where asset seizures and financial challenges loom large, impacting the future of the organization.

In order to obtain a bond for the multimillion-dollar civil fraud judgment against the former president, Trump’s legal team and the office of the New York Attorney General are putting in a lot of effort ahead of Monday’s deadline.

Due to Judge Arthur Engoron’s decision from February, Trump owes more than $454 million personally. When accounting for the debt due by his sons Eric and Donald Jr., the Trump Organization, and interest accrued as of the verdict date, the total soars to $463.9 million.

According to experts who talked with CNN, if the former president is unable to obtain the bonds required to fund Engoron’s order while he appeals, Attorney General Letitia James and her team should be prepared to begin the convoluted legal process of seizing Trump’s assets.

There are assets at stake, including homes, buildings, vehicles, helicopters, and his plane. His homes, which would be more challenging, and financial accounts, which analysts predict will be simpler to seize, might be the major targets.

Trump has requested permission from a state appeals court to post a smaller bond, or none at all. He argues that if he were compelled to sell properties in a fire sale, the damage would be irreversible and would not be undone even if his appeal is successful. The court hasn’t made a decision yet.

If Trump is unable to obtain the bond, the following will occur:

Taking cash and bank accounts

Theoretically, if state prosecutors engage in any more cunning legal maneuvers and Trump’s legal team responds, officials can start the convoluted legal process of seizing his assets. Authorities will have to consider which of his assets, including his houses and bank accounts, they wish to seize. Seizing his financial accounts ought to be the first step, according to experts.

According to lawyer Peter Katz, a former federal prosecutor for the Eastern District of New York who has experience with fraud cases, “the banks are the easiest part; they’ll receive the judgment from the Attorney General – the court order – then the banks will enforce.” “They transfer the money from the account to the accounts of the attorneys general. The other material is a little trickier.

In order to seize funds from Trump’s accounts, state prosecutors must get a court order and ask the New York City Sheriff or a US Marshall to enter the main branch of the bank where Trump has his money.

Adam Pollock, a former assistant New York State attorney general who focuses in judgment enforcement at Pollock Cohen LLP, stated, “They walk in and give it to the manager.” “The manager is expected to transfer the funds right away. It looks like a check from a cashier.

One factor in choosing the best course of action may be the attorney general’s office’s alleged extra time.

They’re attempting to organize their affairs. They are looking for the asset that they can instantly restrict that is the most liquid. The best method to accomplish so is through a bank account, according to debt collection lawyer Alden B. Smith. “Most likely, they’re just selecting the best course of action.”

What about establishments like buildings and companies?

Property seizure requires significantly more time.

According to Pollock, state prosecutors give the sheriff’s office the execution warrant and a $350 fee after determining what property they wish to seize. The property notice is then posted by the sheriff in three locations, and the Attorney General’s office is required to publicize it four times, according to Pollack. Then, according to Pollock, a public auction is held for the property 63 days after the sheriff receives the execution warrant.

According to Pollock, “They may say, ‘Give the sheriff ownership of these 500 corporations and LLCs for public auction,’ or just enough to cover the judgment, or $455 million worth of it.

With Trump’s out-of-state holdings, the seizure procedure will be more challenging, therefore state prosecutors have already taken some legal action to start the process in New York.

In what some see as the first indication that the state is setting the stage to acquire the former president’s private house known as Seven Springs and his golf club in Briarcliff Manor, the attorney general’s office filed judgments in Westchester County, north of New York City.

The judgments were entered by state attorneys with the Westchester County clerk’s office on March 6, a week after Engoron’s decision.

Mar-a-Lago, what about it?

No other judgments have been filed, but the process could play out in other states where Trump has assets, most notably Mar-a-Lago in Florida, though other properties might be less challenging to take.

If you consider the attorney general’s office to be a law firm, it is the biggest in New York State. There are no attorneys in the office in Florida. According to Pollack, I would see executions on homes in New York before you see anything in Florida.

The extent to which Mar-a-Lago is regarded as Trump’s residence, which may be legally protected, may be the subject of a significant legal dispute.

“The homestead extension may be at the center. However, that would need to be resolved in court, Pollock added.

Is Trump able to escape this?

Trump is still awaiting word on whether an appeals court would reduce the fine he is ordered to pay or will simply put the sentence on hold while his appeal is processed.

The former president still has the opportunity to file for bankruptcy if his appeal is unsuccessful, but he does not wish to do so.

Smith responded, “You don’t want him to file bankruptcy because that will result in the debt being discharged.” “The decision is immediately postponed if he files for bankruptcy. The largest enemy of collection enforcement for attorneys is bankruptcy.

Trump has fewer options if he can’t get the necessary funds.

“It seems impossible for him to halt the process without filing for bankruptcy or obtaining a bond,” Smith remarked.

Smaller properties could be sold by Trump and his group in an effort to pay off the debt.

Harry Litman, a former deputy assistant attorney general, told CNN on Friday that “at the end of the day, he’ll do anything before letting Tish James put on a metaphorical padlock on 40 Wall Street.”

Despite the fact that time is running out, several experts wonder why a grace period was granted at all.

“When he owes $455 million to the people of the state of New York after being found persistently liable for fraud, there’s no reason for courtesy,” Pollock argued. “It’s not someone you usually show civility to.”

Does Trump have the money?

The former president claimed that James “wants to take it away from him” in a post on Truth Social Friday, stating that he now has about $500 million in cash that he planned to utilize for his campaign.

“I presently have around five hundred million dollars in cash, a substantial amount of which I intended to use in my campaign for president, thanks to hard work, talent, and luck. Trump wrote in all caps, “THE OFTEN OVERTURNED POLITICAL HACK JUDGE ON THE RIGGED AND CORRUPT A.G. CASE, WHERE I HAVE DONE NOTHING WRONG, KNEW THIS, WANTED TO TAKE IT AWAY FROM ME.”

But according to his lawyer Chris Kise, Trump wasn’t talking about the money he has on hand.

According to Kise, who spoke with CNN on Friday, “what he’s talking about is the money reported on his campaign disclosure forms that he’s built up through years of owning and managing successful businesses.” Letitia James and the Democrats are specifically aiming for that exact amount of money.

In addition, while he files an appeal, Trump was required to obtain a bond of around $92 million to pay the judgment against him in the defamation case of E. Jean Carroll.

Litman told CNN that because of the fraud ruling, there is probably less money than Trump claims. In any case, he continued, it is a severe blow to the outgoing president.

It’s similar to a business that suddenly runs out of chairs, furniture, accounts receivable, or anything else. I believe that to be the end of the road for the Trump organization in New York,” Litman remarked. “Even though it’s only partially true, it’s an ugly, ugly situation for him.”