NewsTrump faces hurdles in securing $464M court-mandated guarantee
Trump faces hurdles in securing $464M court-mandated guarantee
1:55 PM EDT, March 19, 2024
Donald Trump faced difficulty in securing a financial guarantee of $464 million, mandated by a New York court to suspend the execution of a ruling convicting his company of fraud, his attorneys announced on Monday.
The penalty, set by a New York court in February, came as a consequence of the Trump Organization's prolonged practice of inflating the value of its assets. This inflation aimed to secure loans and credits from financial institutions.
To stall the penalty's execution pending an appeal, Trump needed to provide a financial guarantee for the total amount by the following week. However, Trump's legal team reported on Monday that obtaining such a guarantee was "practically impossible." They cited the refusal of 30 approached insurance companies to accept real estate as collateral, insisting on cash instead.
Appeal from the verdict
"While the Trump Organization reportedly possesses robust financial liquidity, it does not have a billion dollars in cash or its equivalents," the lawyers stated. They criticized the penalty and required guarantee as "grossly disproportionate" and sought permission for a reduced guarantee amount.
Should the court dismiss this request or fail to extend the deadline, Trump would be compelled to pay the penalty starting March 25. New York Attorney General Letitia James has expressed readiness to begin asset seizure if Trump cannot produce the funds.
Trump's trial
In February, a civil lawsuit resulted in a $464 million penalty against Trump's company for consistently overvaluing its assets by billions. Judge Arthur Engoron also banned Trump from director positions in any New York business for three years. Trump has contested the penalty, claiming his actions harmed no one and alleging underestimation in the valuation of his properties.
In March, Trump managed bail of $91.6 million in a separate defamation case involving publicist E. Jean Carroll. In this litigation, he challenges the verdict that found him guilty of defaming Carroll by denying accusations of sexual assault.
