NEW YORK — Donald Trump could lose some of his prized property if he does not pay his large fine from his fraud trial in New York.
With interest, the former president and real estate magnate owes the state almost $454 million and to that is added $87,502 for each day he does not pay.
Attorney General Letitia James told ABC News on Tuesday that she could seize some of Trump’s assets if he does not pay the fine imposed by Judge Arthur Engoron on February 16.
Engoron concluded that Trump for years inflated the value of his assets to obtain contracts and soft loans, while building his real estate empire that brought him fame and eventually the White House. Trump denies any wrongdoing and says he will appeal.
“If he does not have the funds to pay the penalty, then we will look through the courts for ways to enforce the ruling, and we will ask the judge to confiscate his assets,” said James, a Democrat, in an interview with ABC reporter Aaron Katersky.
Trump’s ability to pay his enormous legal costs is in doubt amid two consecutive judicial setbacks: In January, a jury ordered him to pay $83.3 million to writer E. Jean Carroll for defaming her.
Trump asserted last year that he has about $400 million in cash, reserves that would go toward paying his fines. The rest of his net worth, which he claims is several billion dollars, consists of golf courses, skyscrapers and other property holdings, as well as investments and other properties.
But James is unlikely to try to grab the keys to Trump Tower or Mar-a-Lago immediately. Trump has promised to appeal the ruling, and that would delay collection of his fines while the process takes its course.
If Trump can’t pay, the state “could seize and sell his assets, and collect debts from anyone who owes him money,” said Gregory Germain, a law professor at Syracuse University.
Asset forfeiture is a common legal tactic when an individual is unable to pay a civil fine. In one famous case, OJ Simpson’s Heisman Trophy was confiscated and auctioned in 1999 to collect part of the $33.5 million fine imposed on him for wrongful death.
Trump could avoid a seizure of his assets if he has enough cash — or is able to convert assets into enough liquidity — to pay his debts plus interest.
What is not known is how much he really has, because most of the information about Trump’s wealth comes from himself, through reports to the Government and annual financial statements that Engoron considered fraudulent.
Trump reported having about $294 million in cash or equivalents in his most recent annual financial statement, for the fiscal year ended June 30, 2021.
2024-02-22 17:40:30
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