Trump bond deadline: $454M New York civil fraud penalty due by Monday | LiveNOW from FOX
Summary
TLDRThe 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.
Outlines
📰 Deadline Drama: Former President's $454M Fraud Lawsuit
The segment discusses the looming deadline involving a $454 million fraud lawsuit against a former president, brought forth by New York Attorney General Leticia James. The conversation revolves around the potential outcomes if the sum is not paid, including the possibility of New York seizing properties. Attorney Jeremy Rosenthal shares his insights, suggesting that the state may file liens as a cost-effective enforcement method. He also addresses the rarity of collecting such a large sum quickly, noting that most judgments go uncollected. The discussion highlights the complexity of the situation and the uncertainty of the outcome.
💰 Moguls and Money: Trump's Financial Predicament
This paragraph compares the financial situations of real estate moguls like Trump and other billionaires such as Elon Musk and Warren Buffett. It is suggested that Trump's assets are not as liquid as those of other moguls, making it difficult for him to write a check for such a large amount. The discussion touches on the convergence of factors creating a 'perfect storm' for Trump, who is described as being 'behind the 8-ball.' The conversation also briefly touches on the potential impact of other legal cases on Trump's financial situation.
🏛️ Legal and Financial Implications: Bankruptcy and Pride
The final paragraph delves into the potential legal and financial implications of Trump's situation, including the possibility of bankruptcy. It explains that bankruptcy would pause all litigation and place New York State in line behind other creditors, which could complicate matters further. The discussion also considers the 'pride factor' related to Trump's real estate holdings and his political ambitions. The segment concludes with a reflection on the high stakes involved in the civil lawsuit, with nearly half a billion dollars on the line.
Mindmap
Keywords
💡fraud lawsuit
💡Appellate Court
💡D-Day
💡liens
💡collections
💡bankruptcy
💡assets
💡E Gene Carroll case
💡Trump Tower
💡political landscape
💡public offering
Highlights
The eve of the deadline involving a $454 million fraud lawsuit against a former president, brought by New York Attorney General Leticia James.
Attorney Jeremy Rosenthal joins to discuss the potential outcomes if the former president does not pay the $454 million.
The former president is attempting to get financial institutions to help meet the bond amount.
The Appellate Court is unlikely to intervene, as their rulings typically occur on Tuesdays and Thursdays.
Tomorrow could be a critical day for the former president, akin to D-Day.
The process of seizing properties in New York State is professional and not mob-run.
Liens could be filed against the properties, which is a cost-effective way for the state to enforce the judgment.
The lawyers believe this case is relatively straightforward due to the clear identification of assets in the 92-page judgment.
Trump's lawyers have called the task of gathering the money quickly a 'practical impossibility'.
Large companies like American Airlines or banks can handle similar litigation, but it's rare for individuals.
About 80% of judgments go uncollected, according to the American Bar Association.
Real estate moguls like Trump are leveraged to the hilt, with assets that are not easily liquidated.
Trump is facing a 'perfect storm' of financial and legal challenges.
The lawyers for Trump tried to reduce the immediate payment to $100 million, with the remainder to be paid later.
The appeals process is complex, with Trump needing to pay the bond before he can appeal the entire case.
Trump's case is financial, not criminal, which affects the terms and processes of the lawsuit.
Bankruptcy is a federal matter that would pause all litigation and put New York State in line behind other creditors.
Filing for bankruptcy is described as hitting the 'nuclear button' and is not considered a priority for Trump.
The situation is complicated by Trump's real estate holdings and the political landscape, including his bid for the White House.
There is a significant amount of money at stake in the civil lawsuit, nearly half a billion dollars.
Transcripts
earlier this morning. there
on Fox News as well, and
we want to continue to
dive into this because
this is the eve of this
deadline involving the
former presidents of 454.
million dollars in this
fraud lawsuit. put forth by
a New York. York attorney
general Leticia James we're
going to be joined right
now by attorney Jeremy
Rosenthal Jeremy. Thank you
so much for joining us here.
on live now from Fox and
of course tomorrow. is the
day that potentially New
York. could see some of these
properties if he doesn't
pay this 454 million. some
will that happen tomorrow
or what's next in terms
of what goes on here?
It's anybody's. guess
Uh, I mean maybe somebody
comes to his rescue. He's
currently uh trying to get
shies trying to get Banks.
uh trying to get creative
with meeting this bond
amount. Um that may or may
not happen tomorrow. Uh, the
Appellate Court, probably
isn't going to step in
most of their rulings. Uh,
I'm told her on Tuesdays
and Thursdays so we might
not get help there. Uh, so
tomorrow, could be kind of a
D-Day for him.
uh a day that's I mean, it's
like predicting the
weather. Um, I mean, I think
we're all on this roller
coaster. Yeah. Yeah, I I
think we all are and
of course this is just 1
amongst many cases We've
been following and of course
they talk about seizing
properties. What would that
look like? How would a
state? sees a property? How
would that go down? um
collections is its own.
industry, right And this is
New York State, uh even
that that being the case. I
don't think it's mob run,
uh, which is the good news.
uh, but collections are their
own industry. Um, these uh
the state knows where all
these assets are because
these assets
were the subject of of this
entire pace Um, you could
see liens getting filed which
is probably the most
cost-effective way. for
them to enforce it. uh
meaning that before. Mr.
Trump or or somebody tries
to sell the property that
the state of New York gets
going to hurt the value you
would think of some of those
properties. some of
properties. or closing on
properties. that that's
where things start to get
expensive. Maybe. uh you
have a situation where uh,
they they want to spike
the football. Uh, and and
have a big showing of
of tricky ways about this
but as far as collections
go um, I'll tell you this
much the the lawyers that I
know that that are into
hardcore bankruptcy and
into collections and things
like that They say, this
is a bit of a cakewalk
because the hardest Single
part about this is
figuring out where all these
assets are and they know
because you just read the
92 page judgment and they
know where the asset are
that is a very good point
because obviously this is
kind of what the whole
premise of this case was
about. I do want to ask you
because Trump's lawyers have
called it a practical.
impossibility to get that
money. this quickly as
well and we're not talking
about 10 million. We're not
talking about 15 million in
terms of this scope the
size of this How rare is
that And do you think it's
even feasible for a person
to get this amount? So
when you when you look at
companies like American
Airlines or your big
insurance companies or banks
that might get sued. they
can handle. in stomach You
would think potentially this
type of litigation or if
they can't then there's
there's bankruptcy which I
think Mr. Trump has said I'm
not he's not going to have
that as an option that
would stay things and that
would cause things uh,
appeals are pay-to-play. Um,
the reason for that is uh
80% of judgments under the
American Bar Association.
says about 80% of judgments
go. uncollected. There's a
lot of reasons that would
go behind that. Uh, there's
a lot of folks who don't pay
their credit card bills and
brings a lawsuit saying
you're a deadbeat. Uh, you
hadn't paid us and then
they win. oftentimes a
default judgment. Uh, but
that's that's a a reason
why a lot of judgments don't
get paid or uh, somebody
sues, a common dispute over
a fence or something like
building your fence takes
the money and and just
disappears you get a
judgment of that guy against
that guy. Um, and he's got
no intentions of paying
it. Uh, there's a lot of
dead beats out there and
courts have basically said,
we're not going to let you
use our courts as a
mechanism for avoiding
paying your debts you get
your trial. You're not
going to go spend a bunch
of the other guys time and
money that they've already
spent trying to run this
money down. It's put up or
shut up and this just
happens to be a really big
number because the subject
matter of it. uh is so
is so big uh, that's what
and that's what makes it
verified are. um another
point to this. is that Mr.
Trump's a real estate guy
problems like this but you
got Elon Musk who? uh in
Warren Buffett those guys
probably lose this kind of
money in their sofa at
Mogul doesn't is leveraged
to the hilt. That's what
they do. They buy they
sell they they mortgage
they they do all those
things. which makes their
up. It's not liquid. They
they can't write a check
that big um, or or if they
can it's pretty rare. Uh,
so you got a lot of these
different things that are
sort of converging almost
to make a perfect storm.
I mean, uh, the guy is
kind of behind the 8-ball
tomorrow. We'll see what
happens. I mean, I think if
we learned anything, I think
it's that we just don't
know what's going to
happen. guys probably lose
this kind of money in their
sofa at home. Um, The Real
Estate Mogul doesn't
is leveraged to the hilt.
That's what they do. They
buy they sell they they
mortgage they they do all
those things which makes
their money their money's
tied up. It's not liquid.
They they can't write a
check that big um, or or
if they can it's pretty
rare. Uh, so you
got a lot of these different
things that are sort of
converging almost to make a
perfect storm. I mean, uh, the
guy is kind of behind the
if we learned anything, I
think it's that we just don't
know what's going to happen
next. Yeah. Yeah. Yeah and
some like you mentioned some
of that money is just tied up
in some of the assets the As
Trump Tower different
Penthouse is Marlo ligo like
you just heard from Eric Trump
as well. I want to ask you
because the lawyers for Trump
kind of tried to get it down
to like a hundred million just
for Monday and then they'd
continue to pick back. Was
that a fair judge? Judgement
do you think from from
what we learned during
this case from the judge?
Uh, the appeals Parts the the
kind of confusing part here.
because and if we break it,
let's break it down in
half. Let's break it down
into 2 parts. First thing
is Trump, obviously wants
to appeal the whole shebang
he wants to appeal all
of it because he thinks
it's all bad, right He
thinks that that the case
against him was no good. He
can't get there. until he
pays this Bond. and now
he's got an argument that
this. and the second
part. Is is that this Bond?
is too big. so his
argument then for the
immediate appeal is look I
want I I just can't even
get my foot in the door.
Um, until I can get some
relief here, So he's
trying to get the the
intermediate Appellate Court
to say that bond is too
hot uh, it's not Let's Make
a deal.
Let's not bargaining or
brokering. Uh, there there
are legal standards. and and
so far the appellate courts
in New York, Haven't been
inclined. to really help
the guy out. Yeah. That was
a really good description
for someone that obviously
doesn't work a ton in it
like I do, Uh, I I do have
to ask you another question
because we also talked
about it Trump having this
case, but also a variety of
other cases including the
E Gene Carroll case where
he was ordered to pay. uh
tens of millions of
dollars as well. How do
they line up And what
terms of presidents? Uh, do
they line up when
you're looking at
different? cases different
amounts that he owes
people. is, New York. a top
the list. uh MoneyWise.
Yes. um all these other
cases are criminal and I
mean and it's a good
tutorial if you will. uh,
We learned Latin and law
school. I don't know why.
uh, because we tend to go
to court and we tend to
speak English, but uh,
there's the the in Latin and
criminal law there's Corpus
to left guy. That's the
body of the crime or a
habias corpus. Uh, so in
criminal law it is your
body going into the can and
then locking the door. Uh,
and that's 1 set of rules
and then this, New York
State case is obviously all
Financial. That's why he
has to pay this Bond. to
appeal if it was a
criminal case. you you get a
you get uh Criminal Appeals
at no cost or or much
less costs. Obviously You
can have a public defender.
Uh, do that. That's because
it's that's because it's
you you're getting locked
up as an individual
you're getting locked up.
Uh, he would be the best
1 to ask which where is it?
Hurt more right Does it
hurt more? Uh the assets
that are threatened? The
Pride of factor because I
think that a lot of folks
who uh sitting through the
trial this is obviously
intensely personal to the
man. Um, or I mean as as
I think most people would
be in a criminal setting
they'd be afraid of getting
locked up. Uh, so I I think
that it's uh, I I I
you know everybody. sleeps
differently at night and uh
and only he knows What
hurts me more? is probably
the best way to say it. Um
obviously this 1 is pretty
confounding to him and I
and and clearly he's not.
found himself in in this
type of uh a predicament
before Is a sugar. mama
or daddy gonna come
tomorrow and and and and and
get him out of this? Uh, who
knows? Uh, who knows but uh,
he's behind the 8 ball. Um,
there's just no question
about that and I my guess
is that if somebody would
have bailed them out that
would have happened by now
He had that big. Um.
public offering on his on
his social media company
which sounds like it's
going to be a good
long-term investment. Uh, but
it doesn't sound like it's
going to turn into Cash.
tomorrow. Yeah the short
term is. a very short for
them with just about 24
hours or so and of course
you also mentioned just the
pride factor that he has
in the real estate and we
throw in the whole
political. landscape right
now in the bid for the White
House and it just becomes a
whole mess. I I do have to
ask you my last question
because you brought the word
up a couple times already
bankruptcy and that could
potentially talk about this
he find for it's very very
unlikely that the ego of
Donald Trump files for
bankruptcy, but if that
does happen is that a
possibility and what does
that look like? It's messy
uh bankruptcy is federal.
So uh and and any
time a litigant somebody in
a in a case. bankruptcy
everything gets stopped.
and then the whole different
set of folks come in. and
the state of New York would
actually have to wait in
line behind other people.
uh other creditors who could
potentially try to seize
those assets. Um, Uh, Mr.
Trump has filed for
everything I've read said,
that's really not on his.
uh, list of of priorities
here or or or options if
you will. Uh, probably a
better way to put it. um,
that would throw a
big wrench in into all of
these things. and and that
would when it stays the
litigation that's just the
pausing it so that would
have the legal effect of
pausing it but it's kind
of it it it's also sort
of hit in the nuclear.
button, right? I mean uh at
what cost do we want to
pause this thing? I mean
do we want to let
everybody kind of in on our
assets and on picking away.
or just New York State.
Uh, really? a difficult
choice for him for sure.
Yeah, and it's very
unlikely that happened, but
I did want to get to some
understanding if it does.
breaking it down tomorrow,
Of course, we're hurtling
closer and closer to it
nearly half of a billion
dollars there on the line
in this Federal. or this
civil lawsuit. Excuse me.
All right. Thanks again for
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