Former President Donald Trump is facing a critical deadline on Monday to post a $454 million bond or deposit to block New York Attorney General Letitia James from collecting on the civil fraud judgment she won against him. If Trump fails to secure the bond, James could swiftly move to seize his bank accounts and real estate properties, potentially unraveling his personal finances and iconic holdings.
Trump's lawyers have already indicated that securing the bond is a "practical impossibility," with 30 bonding companies reportedly turning down the former president's request to use his cash and properties as collateral. The legal team is now pleading with a New York appeals court to issue an order blocking James from collecting until after Trump's appeal is heard, a process that could take years.
According to Jocelyn Nager, a New York lawyer specializing in debt collection and commercial litigation, James can quickly freeze Trump's bank accounts if she knows their location by sending a subpoena to the bank or requesting a marshal for an immediate levy. "It is not instantaneous, but it's very quick. It's very fast. It's a question of how fast that document can be served on the bank," Nager explained.
The $454 million judgment, imposed by Judge Arthur Engoron, concluded that Trump had profited from years of fraudulently inflating the value of his assets, resulting in better loan and insurance terms. The judgment was applied to Trump and certain Trump entities through "joint and several liability," allowing James to pursue the entire amount from Trump or the entities involved.
While Trump has claimed that he cannot appeal the case without posting the bond, long-time New York litigator Mitchell Epner clarified that this is not true. "Mr. Trump is either woefully uninformed or lying. He absolutely can appeal and he already is appealing," Epner stated. However, he acknowledged that there could be significant downsides for Trump if he cannot block James from collecting, such as the potential sale of his properties at a court-ordered auction for less than fair market value.
When it comes to seizing real estate, the judgment immediately becomes a lien on Trump's properties in Manhattan, as they are located in the same county as the judgment. For properties outside New York County but within the state, James would need to take additional actions to apply the lien. She could also pursue Trump's assets in other states, such as his Mar-a-Lago club in Florida, through a process called "domesticating" the judgment.
In addition to real estate, James has a variety of options to collect the judgment in New York, including redirecting rental payments from tenants in Trump Organization-owned properties and seizing funds in New York bank accounts. "If there are bank accounts in New York, those can be frozen essentially immediately if she already knows where they are, and the turnover of the funds in a bank account would be measured in days or weeks," Epner noted.
The process of enforcing the massive judgment would likely require navigating a complex maze of limited liability companies, constant roadblocks by defense attorneys, and technical challenges, slowing the pace of collection from the former president. Steven Yudin, a New York judgment enforcement attorney, cautioned that the process is not straightforward, stating, "You can't just say, 'It's Trump Tower, so I'm going to take it.' I'm sure Donald Trump does not own Trump Tower in his own name; you would have to unravel that."
James has expressed her determination to ensure that the judgment is paid to New Yorkers, even hinting at the possibility of seizing Trump's 40 Wall Street skyscraper, which neighbors her Manhattan office. "We are prepared to make sure that the judgment is paid to New Yorkers, and yes, I look at 40 Wall Street each and every day," she said in an exclusive interview with ABC News.
