New York Attorney General Takes Initial Action to Seize Trump Assets

CNN
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The New York Attorney General's Office has filed judgments in Westchester County, the first sign that the state is trying to take over. Donald Trump'Golf course and private garden north of Manhattan, called Seven Springs.

Prosecutors filed the rulings at the Westchester County Clerk's Office on March 6, a week after Judge Arthur Engron made the official announcement. $464 million result Against Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization.

The decision against Trump and the former president's difficulty getting bond directly hits on Trump's image as a billionaire as he tries to raise more money for both his legal bills and a third run for the White House while he appeals the ruling.

Entering a judgment is the first step the lender takes to recover the property. Additional steps may follow, such as confiscation of assets or confiscation of assets or taking other steps in court.

Judgment has already been entered in New York City Trump's properties His penthouse at Trump Tower, 40 Wall Street, his hotel adjacent to Central Park, and numerous apartment buildings are located there, including Trump Tower.

The judgments were not entered in Florida counties, including Miami or Palm Beach, where Trump's Mar-a-Lago property and Trump National Doral Golf Club and Resort are located, or in Cook County, Illinois, where Trump's hotel in Chicago is located. Thursday records via CNN.

Trump is now Four days to satisfy the judgment Or the appellate court can be moved to allow the posting of a smaller amount or postpone the payment until after the appeal.

At a new reality show on Thursday, Trump said it's “too expensive” to put up money and that “bond companies can't do that much.”

The process of foreclosure is neither quick nor easy. Trump has structured his business by setting up limited liability companies for nearly every asset or assets — more than 300 in total — that are ultimately controlled by his trust.

“They are intricately organized and he is not the owner on paper, so the judgment against him is not directly enforceable against certain assets. Sorting this out is not easy, and it is not quick,” said Nikos Passas, professor of criminology and criminal justice at Northeastern University.

“Meanwhile, she can get bank lines and go after bank assets. She can claim the property. There are all kinds of things she can do in an effort to collect,” Bassas said.

“All of this completely undermines the brand that he's largely used to make money not just in the US but around the world,” Bassas said. “Ultimately, I think this will mean the end of the Trump business in New York — and it could cause trouble in other jurisdictions as well.”

Separately, Trump's lawyers on Thursday pushed back on several recommendations made by the New York attorney general's office. How can he pay the bond?.

That includes the idea that Trump could get multiple underwriters to collect the judgment's total bonds — Trump says he would still have to post half a billion dollars in cash or reserves — money he doesn't have.

In the filing, Trump's legal team argued that the New York attorney general's office could not challenge their claims.

If no arrangements are made, New York Attorney General Letitia James has said she will seek to seize the assets.

The attorney general's office suggested Wednesday that it's common for large companies to post billion-dollar securities and that Trump should have posted real estate with the court.

“The proposal is impractical and illogical. The Attorney General has not cited New York case law to support this argument. However, from a risk perspective, the Attorney General's proposal that a “court-appointed officer'' to 'hold real estate' is equivalent to the Supreme Court.” already prescribed By requiring a court-appointed monitor to oversee the defendants' business activities,” Trump's attorneys wrote.

If Trump's lawyers are forced to sell the property in a fire sale, if they win an aspect of the appeal, the property could not be recovered later, causing irreparable injury.

“By requiring the full amount of the judgment to be confirmed on appeal, the Attorney General and the Supreme Court sought to impose an unreasonable, unreasonable and unconstitutional (under the federal and New York State constitutions) bond requirement,” they wrote.

Thursday, Engoran Trump expanded the role of monitor to oversee the organization That includes extensive oversight of the internal financial practices of Trump's real estate business.

Engoran ordered the Trump Organization to provide the monitor with detailed information about its efforts to obtain securities to cover up the rulings.

“The Trump Organization shall notify the Monitor in advance of any attempt to secure surety bonds, including any financial disclosures requested or required, any information provided in response to such requests, any representations made by the Trump Organization regarding the security of such securities. Personal guarantees made by any of the defendants and any Trump Organization required by the surety Duties,” the judge ordered.

Engoron laid out a timeline of some of the steps the Trumps must take within the next month, including giving the monitor, retired Judge Barbara Jones, full access to its day-to-day financial operations.

Within two months, the judge said, “the superintendent is ordered to submit a report detailing his assessment of the Trump Organization's internal controls and to recommend appropriate internal controls for the Trump Organization.”

He also sent a notice to the Trumps that he may order implementation of the monitor's recommendations.

Engoron also authorized the monitor to keep copies of the Trump Organization's monthly bank and brokerage statements, provide advance notice of cash transfers of more than $5 million, provide information on the creation or dissolution of business entities, and provide advance notice of any loan financing. .

This story has been updated with additional updates.

CNN's Kate Sullivan contributed to this report.