Donald Trump could face severe consequences if he is unable to post a $454 million bond in his civil fraud case by Monday, as the former President is looking at ways to gather the money.
Trump, 77, has filed papers in an appeals court case seeking to waive the requirement to post the bond as he contests a massive judgment from February.
This judgment, accruing $112,000 in interest daily, stems from Manhattan Supreme Court Justice Arthur Engoron's order after a three-month trial.
The Attorney General's Office argued that Trump inflated his net worth by billions annually on financial statements to secure better loan and insurance terms.
Specifically, Trump's Mar-a-Lago estate in Florida was appraised at a staggering 2,300% above its actual value in one financial statement. Similarly, his Trump Tower triplex in New York City was portrayed as three times larger than its true size, per BBC.
Despite Trump's attempts to secure the bond, reaching out to over 30 firms, he reportedly faces "insurmountable difficulties" in obtaining financial backing, according to his attorneys, per CNN.
"If you're trying to appeal a financial penalty, the courts want to make sure if you lose, at the end of the day you can pay the penalty," explained Kevin J. O’Brien, a former prosecutor and current defense attorney in New York.
The bond requires Trump to post 120% of the judgment amount with collateral, totaling $557.5 million, according to his lawyers. Trump initially sought to lower this amount to $100 million and is now seeking to avoid posting the bond altogether.
Trump's legal team argues against the necessity of selling properties to raise funds, fearing irreparable losses in a "fire sale."
However, experts suggest Trump may already be overleveraged, making lenders wary of further involvement amidst his legal and financial woes.
But what consequences could Trump face?
Should Trump fail to meet the deadline, Letitia James, the Attorney General of New York, could initiate asset seizures, including Trump's prominent New York properties such as 40 Wall St., the Trump International Hotel and Tower, Trump Park Avenue, and 1290 Avenue of the Americas.
Trump's holdings extend beyond New York, potentially including Mar-a-Lago in Florida.
To settle the balance, other types of assets like bank accounts, wages, art, accounts receivable, rent on buildings, and money market accounts could be seized.
That being said, Kevin J. O’Brien explained that going after any of these assets would be a long process. "It’s going to take a long time before Trump loses any of these properties," he said per the New York Post.
