As Donald Trump stares down a Monday deadline to secure a $454 million bond related to the civil fraud penalty against him in New York, the former president and his team are said to be weighing an unconventional option – simply doing nothing and daring New York Attorney General Letitia James’ office to seize his assets.
Trump’s lawyers claimed in court this week that posting the full bond amount, which would pause collections on the massive judgment while it is appealed, is a practical impossibility.
Despite his vast wealth, the former president has reportedly struggled to either raise the cash from brokers or secure the money from wealthy supporters.
That has led to speculation Trump could pursue bankruptcy protections or other legal maneuvers to shield his real estate empire, including marquee properties like Trump Tower where he launched his 2016 presidential bid.
Democratic Party leaders have flocked to social media and speculated that Trump can’t pay because he’s broke – a notion shot down by Never Trump billionaire Mark Cuban.
“Trump claims he is a billionaire. But he can’t pay a $464 million judgement. That means he is lying. How do I know? Math,” Rep. Ted Lieu, D-Calif., posted on Monday with the hashtag, “TrumpIsBroke.”
“Ted, you know I’m no supporter of Trump. That’s for damn sure,” Cuban replied. “But you are wrong on this topic Ted. Net worth is completely different than cash in the bank. We were in a zero interest rate environment for a long, long time. So keeping cash in the bank or even money markets was dumb. In fact searching for yield is what killed small banks last year.”
“On a more macro basis Ted. Even if rates were along a long term trend line for the past ten years, few people are keeping more than 45 percent of their assets in liquid assets,” Cuban continued. “And as far as the bond companies Trump’s assets are mostly interests in commercial real estate and foreign assets. No bond company is loaning against them in this commercial real estate market, if ever.”
Those close to the former president have downplayed the likelihood of a Chapter 11 filing given the complications it would create heading into the 2024 campaign.
“He’s been there and done that,” one Trump insider dismissed when asked about a potential bankruptcy move.
Instead, one option being seriously considered is simply defying the bond order entirely and simply do nothing – a bold stance that would compel James’ office to initiate seizing Trump’s properties and bank accounts to recover the $454 million judgment themselves.
According to sources familiar with Trump’s thinking, the former president believes playing hardball and refusing to voluntarily pay could improve his chances of ultimately overturning the entire penalty on appeal, potentially to the U.S. Supreme Court.
Trump is said to be confident any seized assets could be recovered eventually.
“Even if there is a taking, it doesn’t mean he can’t take it back later,” one source close to Trump told The New York Post.
However, such an approach is not without severe risk.
Legal experts warn any properties seized by the New York AG’s office may ultimately be sold off entirely to pay the judgment – creating a scenario where Trump could permanently lose prized possessions like his Trump Tower penthouse before any appellate ruling.
“They are going after the money, and that’s all he has a right to get back, not the buildings – unless the judgment is reversed before they are sold,” Adam Leitman Bailey, a commercial real estate attorney in New York, told The Post.
Trump’s camp has bristled at the size of the civil fraud verdict that found he provided misstated valuations of his real estate holdings to banks.
They believe allowing the expansive penalty to stand would “have a chilling effect on people who do business in New York because it could happen to anyone.”
Whether Trump ultimately decides to forces James’ hand remains uncertain. Some allies insist the former president could easily raise the funds from his vast network of wealthy contacts – a path he has been unwilling to pursue thus far.
“He’s not an ‘I’m passing the hat’ man,” one source claimed.
As the clock ticks down, all eyes remain fixed on Trump’s next move, which many see as potentially his highest-stakes legal decision yet given the magnitude of the potential asset seizures looming. The former president’s choice will largely dictate how his 2024 comeback bid continues to unfold.
The Horn editorial team