NY Attorney General Moves to Seize Trump’s Seven Springs Estate:-
The New York Attorney General’s office has initiated legal proceedings in Westchester County, signaling the state’s intention to pursue the acquisition of Donald Trump’s golf course and private estate, Seven Springs, situated north of Manhattan. These legal actions were recorded with the clerk’s office in Westchester County on March 6, shortly after Judge Arthur Engoron’s ruling of $464 million against Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization.
The ruling against Trump, coupled with his challenges in obtaining a bond for the appeal, directly challenges his billionaire persona, particularly as he seeks to raise funds for his legal expenses and a potential third presidential campaign.
Filing a judgment is typically the initial action a creditor pursues in their effort to reclaim property. Subsequent steps, like placing liens on assets, initiating foreclosure proceedings, or pursuing further legal actions, would ensue if the property is to be seized.
In New York City, where Trump’s properties such as Trump Tower, his penthouse within Trump Tower, 40 Wall Street, his hotel adjacent to Central Park, and multiple apartment buildings are situated, the judgment has already been entered.
As per CNN’s examination of records on Thursday, judgments have yet to be entered in Florida counties such as Miami or Palm Beach, where Trump’s properties like Mar-a-Lago and the Trump National Doral Golf Club and resort are situated, as well as in Cook County, Illinois, where Trump’s hotel in Chicago is located.
Trump is now facing a deadline of four days to satisfy the judgment or persuade an appeals court to permit him to post a reduced amount or delay the payment until after the appeal process.
In a recent post on Truth Social on Thursday, Trump highlighted the significant expense involved in posting the required amount, stating that it is financially burdensome and suggesting that bonding companies find it challenging to handle such a high sum.
The process of asset seizure won’t be swift or straight forward. Trump has structured his business by establishing numerous limited liability companies (LLCs) for each property or asset, totaling over 300, all ultimately controlled by his trust.
Nikos Passas, a professor of criminology and criminal justice at Northeastern University, remarked that Trump’s business entities are intricately organized, with Trump not being the documented owner on paper. Consequently, a judgment against him wouldn’t directly apply to certain properties. Resolving this complexity will be neither simple nor speedy.
“This situation is severely damaging the brand, which he relies on primarily for generating income globally, not just within the United States,” Passas stated. “Ultimately, I believe this could signify the demise of Trump’s business in New York, and potentially pose challenges in other jurisdictions as well.”
Trump attorneys push back on AG’s bond ideas:-
- Trump’s lawyers responded to proposals from the NY Attorney General about fulfilling the bond requirement.
- They rejected the idea of multiple underwriters for bonds, saying it still required half a billion dollars Trump lacks.
- Trump’s legal team argued that the NY Attorney General shouldn’t challenge their assertions.
- New York Attorney General Letitia James plans to seize assets if an agreement is not reached.
- Trump’s lawyers argue against the suggestion of posting real estate as collateral, deeming it impractical and unfair.
- They contend that the proposal lacks legal support and equates to existing court mandates.
- Trump’s legal team warns of irreparable harm from selling properties at distressed prices.
- They criticize the demand for a full judgment bond as unreasonable and unconstitutional.
Judge gives monitor expansive duties including review of efforts to obtain bond
On Thursday, Judge Engoron expanded the monitor’s role overseeing the Trump Organization to include broader oversight of Trump’s real estate business’ internal financial practices. Engoron also instructed the Trump Organization to provide detailed information to the monitor regarding its attempts to secure bonds for covering judgments.
- Engoron broadened the monitor’s oversight of Trump’s real estate business finances.
- The Trump Organization must supply detailed information to the monitor about its efforts to obtain bonds.
- This includes financial disclosures, responses to requests, representations made, personal guarantees, and obligations required by the surety.
Engoron has established a timeline outlining specific actions required from the Trumps in the coming months. Within the next month, they must grant retired Judge Barbara Jones, acting as the monitor, unrestricted access to their day-to-day financial operations.
After two months, Engoron has directed the monitor to submit a report detailing her evaluation of the Trump Organization’s internal controls and recommending necessary improvements.
Furthermore, Engoron has warned the Trumps that he may compel them to implement the monitor’s recommendations.
In addition, the monitor has been granted authority to access copies of the Trump Organization’s monthly bank and brokerage statements, receive advance notice of transfers exceeding $5 million, be informed about the establishment or dissolution of business entities, and be notified in advance of any debt financing arrangements.