Donald Trump has proudly claimed ownership of what he calls the “Mona Lisas” of real estate, but he may be at risk of losing some of these properties and facing financial unraveling if he fails to satisfy the $464 million judgment in his civil fraud case by next week. New York Attorney General Letitia James could take various actions, such as freezing Trump’s bank accounts, collecting rent from his building tenants, subpoenaing his financial information, and auctioning off his trophy properties.
According to experts in judgment collection, the process of enforcing such a massive judgment against a former president like Trump would involve dealing with complex issues like limited liability companies, legal obstacles, and technical challenges. Judge Arthur Engoron previously found Trump and his co-defendants guilty of engaging in fraudulent business practices and imposed the hefty judgment.
If Trump fails to secure a bond for the full judgment amount, he risks having his assets seized by the court. Despite Trump’s claims of strong financial standing, his lawyers have struggled to find insurers willing to accept his cash and properties as collateral. The New York Attorney General has stated that she will seek enforcement mechanisms if Trump cannot pay the judgment.
Enforcing the judgment could involve freezing assets, collecting rent from tenants, and potentially auctioning off properties like Trump Tower or 40 Wall Street. Trump’s complex corporate structure presents a challenge for collection efforts, as his assets are often held by multiple entities. The process is expected to be lengthy and may face resistance from Trump’s legal team.
In the event that Trump cannot pay the bond, the New York Attorney General could proceed with enforcing the judgment by seizing assets and auctioning off properties. While the process typically takes time, the high-profile nature of the case may expedite proceedings. Trump’s financial resources, including his stake in the Trump Media & Technology Group, could play a role in his ability to satisfy the judgment.
