New York Attorney General Letitia James is making moves to potentially seize former President Donald Trump’s properties in the coming week, according to legal editor Kerri Kupec. This development comes after Trump failed to secure a $464 million appeal bond following a civil fraud judgment against him in New York. In a court filing, Trump’s attorneys stated that obtaining the bond is a “practical impossibility.”
Democratic Representative Ted Lieu of California took the opportunity to criticize Trump, accusing him of lying about being a billionaire. Lieu reposted a story on the matter, stating, “Trump claims he is a billionaire. But he can’t pay a $464 million [judgment]. That means he is lying. How do I know? Math.”
Billionaire business entrepreneur Mark Cuban, who is not a supporter of Trump, took issue with Lieu’s logic and called him out on Twitter. Cuban pointed out that net worth is different from cash in the bank and explained that keeping cash in the bank or money markets has not been a wise financial move due to the zero-interest rate environment. He also highlighted that the bond companies would not loan against Trump’s assets, which primarily consist of commercial real estate and foreign assets.
Cuban further elaborated on the macroeconomic factors at play, expressing his belief that low-interest rates for an extended period have negatively impacted small banks. He stated that Trump’s net worth may not have grown as expected, leading him to potentially lie about his assets when applying for loans. Cuban acknowledged that the only reason to lie on a loan application is if one is compelled to do so.
Trump’s legal filing emphasized the difficulty in obtaining a bond of such magnitude, stating that it effectively requires cash reserves approaching $1 billion, which is unprecedented for a private company. A New York Appeals Court judge previously ruled that Trump must post a bond for the full amount of the judgment, and an independent director of compliance will be appointed.
This recent development follows a ruling by Judge Engoron earlier in February, in which Trump was found liable for fraud and other financial crimes. The former president was accused of inflating his assets and committing fraud in financial documents. Engoron’s ruling included charges of persistent and repeated fraud, falsifying business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud, and conspiracy to commit insurance fraud.
It remains to be seen how the legal battle between Trump and the New York Attorney General will unfold. The case highlights the contentious nature of the former president’s financial affairs and the ongoing scrutiny surrounding his business dealings.
