Trump bond deadline: $454M New York civil fraud penalty due by Monday | LiveNOW from FOX

Summary

The transcript discusses the impending deadline for former President Trump to pay a $454 million fraud lawsuit settlement, as initiated by New York Attorney General Leticia James. Attorney Jeremy Rosenthal shares insights on the possible outcomes, including property seizures and the challenges Trump faces in meeting the bond amount. The conversation also touches on the possibility of bankruptcy and the complex legal and financial situation Trump is in, with other ongoing cases and the potential impact on his real estate and political ambitions.

Takeaways

• 📊 The former president faces a deadline to pay $454 million in a fraud lawsuit put forth by New York Attorney General Leticia James.
• 🔥 There's uncertainty about whether the payment will be made by the deadline, with speculation about various creative financing attempts.
• 🛡️ The Appellate Court is unlikely to provide immediate relief, as their rulings are typically on Tuesdays and Thursdays.
• 🔨 If the payment is not made, New York could potentially seize properties, with liens being a cost-effective enforcement method.
• 🤷‍♂️ Trump's legal team argues that gathering the $454 million in a short timeframe is practically impossible.
• 🤔 Many judgments in the American legal system go uncollected, highlighting the challenge of enforcing such a large financial judgment.
• 💳 Real estate assets, like Trump Tower and Mar-a-Lago, are mentioned as examples of the former president's leveraged assets.
• 🔍 Trump's lawyers attempted to negotiate the bond amount to a more manageable figure for immediate appeal, but faced legal standards.
• 👥 In addition to this case, Trump faces other legal challenges, including criminal cases and other civil suits.
• 🚫 Filing for bankruptcy is considered an unlikely option for Trump, as it would pause the litigation but also open up his assets to widespread claims.

Q & A

What is the deadline involving the former president and the $454 million fraud lawsuit?

The deadline mentioned in the script is related to a $454 million fraud lawsuit put forth by the New York attorney general, Leticia James, against the former president. The deadline is significant as it may lead to the seizure of properties if the amount is not paid.

What is the role of the Appellate Court in this case?

The Appellate Court's role is to potentially step in and offer relief regarding the bond amount. However, their rulings typically occur on Tuesdays and Thursdays, so immediate intervention is unlikely. The court's involvement could impact the deadline scenario.

How might the state of New York enforce the $454 million judgment?

New York State could enforce the judgment by filing liens on the properties involved in the case, which is a cost-effective way to ensure that the state gets its money if the properties are sold or closed on. This prevents the properties' value from being affected and forces the debtor to address the debt.

What does it mean for a real estate mogul like Trump to be leveraged to the hilt?

Being leveraged to the hilt means that the individual has maximized their use of borrowed money to invest in assets like real estate. This strategy can amplify potential gains but also increases the risk of not having liquid assets readily available to pay off large debts like the $454 million judgment.

How common is it for judgments to go uncollected?

According to the American Bar Association, about 80% of judgments go uncollected. This can be due to various reasons, including the debtor's inability or unwillingness to pay, lack of funds, or the complexity of locating and seizing assets.

What is the significance of the deadline for Trump's legal and financial situation?

The deadline is significant because it marks a point of potential crisis for Trump. If he fails to pay the $454 million by the deadline, it could lead to the seizure of his properties and further legal complications. It also coincides with other legal challenges he faces, increasing the pressure.

What was Trump's lawyers' argument regarding the immediate appeal of the judgment?

Trump's lawyers argued that the bond amount was too high, which effectively blocked their client from filing an immediate appeal. They sought relief from the intermediate Appellate Court to reduce the bond, allowing Trump to challenge the judgment without the full payment upfront.

How does the potential bankruptcy filing affect the collection of the judgment?

If Trump were to file for bankruptcy, it would introduce a federal intervention that could pause all collection efforts. The state of New York would have to wait in line behind other creditors, and the process would become more complex and time-consuming for all parties involved.

What is the difference between the financial case and criminal cases in terms of appeals and collection?

In financial cases like this one, appealing requires the posting of a bond, which can be a significant barrier. In criminal cases, appeals are less costly or even free, and public defenders may be appointed. The financial case involves the protection of assets, whereas criminal cases involve personal liberty.

What are the implications of Trump's other ongoing legal cases on this scenario?

Trump's other legal cases, such as the E. Gene Carroll case, add to the complexity and pressure of the situation. They could affect his financial resources and legal strategy, potentially influencing how he handles the $454 million judgment and its deadline.

How might the upcoming deadline impact Trump's political aspirations?

The deadline and the potential consequences of not meeting it could affect Trump's political image and credibility. It might influence public perception and support for his bid for the White House, adding another layer of complexity to his legal and political challenges.