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.

Outlines

00:00

📰 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.

05:04

💰 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.

10:05

🏛️ 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.

Keywords

💡fraud lawsuit

A legal action brought against an individual or entity accused of fraudulent behavior, typically involving financial deception. In the context of the video, the fraud lawsuit refers to the case against the former president involving a significant amount of money.

💡Appellate Court

A court that reviews and potentially modifies the decisions of lower courts. Appellate courts typically focus on matters of law rather than re-examining the facts of the case. In the video, the speaker mentions the Appellate Court in relation to the potential for it to intervene in the case.

💡D-Day

A term originally used to describe the day of a significant military operation, but now more broadly applied to denote a critical day or turning point in a situation. In the video, 'D-Day' is used metaphorically to refer to the day when a major decision or event is expected to occur in the legal case.

💡liens

A legal claim or right that a creditor has over a debtor's property or assets. Liens are often used as a security interest to ensure payment of a debt. In the context of the video, the state could file liens on properties as a means to enforce the collection of the judgment amount.

💡collections

The process of recovering money owed for goods or services, or in this case, the enforcement of a court-ordered judgment. Collections can involve various legal actions and strategies to ensure that the debtor complies with the court's order.

💡bankruptcy

A legal process that helps individuals or businesses who are unable to repay their outstanding debts. It involves reorganizing or eliminating debts under the protection of the federal bankruptcy court.

💡assets

Resources owned by an individual or entity that have economic value and can be converted into cash. In the context of the video, assets refer to the properties and financial holdings that are subject to the fraud lawsuit and potential collection efforts.

💡E Gene Carroll case

A specific legal case in which the former president was ordered to pay tens of millions of dollars. This case is mentioned in the video as part of the broader context of the legal challenges facing the individual.

💡Trump Tower

A skyscraper in New York City that serves as the headquarters for The Trump Organization and contains luxury condominiums and retail space. In the video, it is mentioned as one of the properties that could be affected by the fraud lawsuit.

💡political landscape

The current state of political affairs and activities within a particular region or country. In the video, the political landscape is mentioned in relation to the former president's bid for the White House and how it may intersect with the legal issues he is facing.

💡public offering

The process by which a company offers its shares of stock to the public for the first time through an Initial Public Offering (IPO). This is typically done to raise capital for the company. In the video, the public offering is mentioned in the context of the former president's social media company.

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