Trump Fraud Verdict: NY AG Letitia James Says She’ll Seize Ex-President’s Buildings If He Can’t Pay Up

Topline

New York Attorney General Letitia James is prepared to try and seize former President Donald Trump’s properties if he can’t pay a nearly $355 million fine in the civil fraud case against him and his company, she told ABC News Tuesday, as questions swirl over how Trump will pay the sum when the amount he owes now exceeds his estimated cash in the bank.

New York Attorney General Letitia James speaks during a press briefing on Feb. 16 in New York. Copyright 2024 The Associated Press. All rights reserved.

Key Facts

New York state Judge Arthur Engoron ordered Trump and his co-defendants to pay approximately $364 plus interest in the case against them—finding them liable for fraudulently misstating the value of assets on financial statements for personal gain—with the ex-president and companies he controls personally liable for $354.9 million of that amount plus interest.

With interest, Trump’s fine came to $453.5 million as of Friday, and interest will keep accruing at a nine percent rate per year until he pays it off—meaning he’ll owe an extra $31.9 million per year, or $87,502 per day.

James, who brought the case against Trump, told ABC News that if Trump doesn’t pay in the case, she’ll “seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets.”

The attorney general noted she “look[s] at 40 Wall Street each and every day,” a Trump property that Forbes values at approximately $80 million, with a total value of $205 million and $125 million in debt.

Trump spokesperson Steven Cheung has not yet responded to a request for comment.

Crucial Quote

Trump “engaged in this massive amount of fraud. It wasn’t just a simple mistake, a slight oversight—the variations are wildly exaggerated, and the extent of the fraud was staggering,” James told ABC News. “If average New Yorkers went into a bank and submitted false documents, the government would throw the book at them, and the same should be true for former presidents.”

What To Watch For

Trump has heavily opposed the ruling against him in the fraud case and is expected to appeal it, though that won’t stop him from having to pay up in the meantime—either by putting up cash into a court-controlled account, or by posting an appeals bond in which a third party company guarantees Trump’s ability to pay.

Forbes Valuation

Forbes estimates Trump’s net worth at $2.6 billion as of September, which includes $426 million in cash and liquid assets—which isn’t enough to cover both the fraud fine and $83.3 million Trump still has to pay as part of a separate defamation case brought by writer E. Jean Carroll. The $426 million is part of a broader estimated $640 million Trump has in personal assets—which also include his homes, aircraft, pension and cryptocurrency holdings—while his golf clubs and other real estate properties are worth an estimated 1.75 billion altogether. Trump’s New York City properties, which James could be most inclined to have the court seize, are worth an estimated $690 million, while his Trump Tower penthouse—one of his personal assets—is worth an estimated $52 million.

How Will Trump Pay?

It still remains to be seen how Trump will comply with the $354.9 million payment, whether that’s liquidating assets in an effort to put up cash, or trying to seek an appeals bond from a third party company—something that experts have said could be tricky, given companies’ hesitance to accept real estate as collateral and potential wariness about working with Trump amid his legal jeopardy. The civil fraud ruling also bars Trump from obtaining loans from any financial institutions registered in New York for three years, which could also impact his ability to pay. Critics of the ex-president are concerned Trump could try to secure support from a wealthy financier—such as Elon Musk or Saudi Arabian Crown Prince Mohammad bin Salman—which could raise questions about if he’d be beholden to them should Trump win a second term in the White House.

Key Background

James sued Trump, his business associates—including his sons—and his company in 2022, accusing them of fraudulently misstating the value of assets on financial statements more than 200 times between 2011 and 2021. The defendants did so in order to obtain more favorable business deals with financial institutions, James alleged, as well as to reflect a higher net worth for Trump. The ex-president and his co-defendants strongly opposed any wrongdoing, claiming their valuations were subjective numbers based on Trump’s real estate expertise and casting blame for any issues with the statements’ numbers onto the accountants who prepared the documents. Engoron was unswayed by the Trump defendants’ arguments: the judge found them liable for fraud by misstating valuations even before the trial began, writing their legal arguments were out of a “fantasy world,” before then ruling against them on other allegations following a monthslong trial. The judge ruled there’s “overwhelming evidence” to suggest the fraud was done knowingly and Trump and his sons knew the valuations were false, and wrote the defendants’ unwillingness to accept any errors in their numbers “borders on pathological.” In addition to the monetary judgment, Engoron also imposed other penalties that include barring Trump and his sons from running any New York companies for three and two years, respectively, and requiring an Independent Monitor and Director of Compliance to oversee the Trump Organization’s activities.

Further Reading

ABC NewsLetitia James says she’s prepared to seize Trump’s buildings if he can’t pay his $354M civil fraud fine MORE FROM FORBESHere’s How Much Donald Trump Is WorthBy Dan Alexander