Trump Faces Uphill Struggle to “Raise Capital” for New York Case Payment

There has been another twist in Donald Trump’s ongoing New York legal case. Recently, Attorney General Letitia James, referenced one of Trump’s previous statements. Apparently, he admitted that he does not have enough liquid assets to cover his $355 million fine.

The Start of the Legal Battle

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Trump’s legal issues in New York began in September 2022, when James filed a lawsuit against Trump, his sons, Donald Junior and Eric, the Trump Organization, and two people involved in the Trump Organization. She claimed they lied about the value of their assets to secure better loans and taxes. Throughout the case, Trump has pled not guilty.

The Court’s Verdict

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On February 16th, Judge Arthur Engoron ruled that Trump must pay a fine of $355 million plus interest. He also stopped Trump from being an officer or director of any New York business for three years while also canceling all of his businesses in the state. The other defendants involved have received similar punishments.

Appeal Efforts

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Following this punishment, Trump’s defense team appealed the ruling. However, in order to do this, the court requires a $454 million bond. They had previously appealed the ruling, but Engoron rejected this appeal, claiming they “failed to explain, much less justify, any basis for a stay.

Trump’s Financial Strategy

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Instead of putting up the full bond, Trump’s lawyers proposed a $100 million bond, which is approximately a quarter of the original amount. They claimed they were unable to post the full bond. They said the “exorbitant and punitive amount of the judgment coupled with an unlawful and unconstitutional blanket prohibition on lending transactions would make it impossible to secure and post a complete bond.”

Comments on the Bond

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Speaking about the bond, Trump’s legal team said they intended to pay the $100 million bond. They said, “The ongoing oversight by the monitor, which has and will continue to preclude any dissipation or transfer of assets, would alone be sufficient to adequately secure any judgment affirmed. Appellants’ bond would simply serve as further security.”

Raising Capital

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In response, Trump’s team has said that they will need to “raise capital” in order to meet the payment. James supported this. She said, “These are precisely the circumstances for which a full bond or deposit is necessary, where defendants’ approach would leave [the attorney general’s office] with substantial shortfalls once this court affirms the judgment.”

Securing the Reward

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James continued. She said, “A prevailing plaintiff is entitled to have her reward secured, and defendants have never demonstrated that Mr. Trump’s liquid assets could satisfy the full amount of the judgment.” Clearly, she believes that she should be allowed to demand the full bond payment from Trump.

A Clear Need

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She also said, “As the court recognized earlier in this case, there is unfortunately a distinct need to ‘ensure that defendants do not dissipate their assets or transfer them out of this jurisdiction.’ And even now, in claiming urgency, defendants have made no efforts to be forthcoming with this court about their specific efforts to obtain a bond, such that this court could properly assess their motion.”

Trump’s Assets

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Trump has a huge financial empire. Forbes has estimated his net worth to be around $2.6 billion, most of which comes from real estate. He allegedly owns 500 businesses and has approximately $400 million cash. As such, this is both an asset and a challenge for him in terms of satisfying the ruling.

Additional Financial Burdens

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Along with the $355 million judgment, Trump faces another fine in a separate New York case. Recently, another judge ruled that he must pay $83 million to E. Jean Carroll for defamation. This comes after he allegedly defamed her during a lawsuit, where she claims Trump sexually assaulted her in the 1990s.

The Challenge of Liquid Assets

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To make matters even worse for Trump, the ruling also stopped him from applying for loans from New York banks. This means he will not be able to liquidate his assets quickly in the state. Analysts have suggested that in order to meet this bond, he must rely on his businesses in other states to generate the cash.

A Potential Lifeline

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Some political analysts have suggested that Trump could use his stake in Truth Social to ease some of the financial pressures. Economists have valued his stake at around $4 billion, which would be more than enough to cover the payments. However, he may not be able to do this for another six months due to a merger that is currently taking place.

Not a Solution

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Additionally, Trump cannot use his political campaign funds to settle the judgment. This is because the case is not related to his political career or time as president. Therefore, it is illegal for him to use these funds. Some political analysts have suggested that Trump has tried to claim these legal cases as politically motivated in order to use these funds instead.

Consequences of Non-Payment

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There are numerous possible punishments if Trump does not pay the court fine. For example, he may be charged with contempt of court, which carries further punishments. Additionally, he could face additional fines, which would only add to the financial pressures that he is currently experiencing.

Hush Money Criminal Case in New York

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Also, in New York, Trump was indicted on a separate case for falsifying business records. He allegedly made a hush-money payment to Stormy Daniels, trying to conceal campaign finance violations. The trial is scheduled for March 2024 and is just one of many legal cases Trump is currently facing.

Classified Documents Case

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In another case, he has been charged with mishandling classified national security documents after leaving office. He allegedly mishandled U.S. nuclear program details at his Mar-a-Lago resort. The trial is set for May 2024, with Trump and associates charged under the Espionage Act and conspiracy to obstruct justice.

Georgia Election Tampering Probe

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In Georgia, Trump is under investigation for attempting to overturn the 2020 presidential election results. He allegedly made a phone call to the Georgia Secretary of State, asking for them to “find” enough votes to reverse his loss. In this case, the charges could include election fraud and interference with election duties.

Supreme Court’s Role in the 2024 Election

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In Colorado, the Supreme Court ruled to have him disqualified from the presidential ballot for his actions during the January 6th Capitol riots. The court argued this falls under the 14th Amendment’s insurrection clause. However, Trump has appealed this verdict, and the US Supreme Court has ruled that he must remain on the ballot until they have considered his appeal.