What you need to know about Trump’s money as he faces a $537 million fine
This is a moment of financial truth for Donald J. Trump.
The former president, who recently lost two civil cases, is under pressure to find enough cash to avoid massive asset seizures as he appeals judgments totaling at least $537 million.
One of those, $454 million, was ordered last month by a New York state judge in Trump’s civil fraud lawsuit. The other, $83.3 million, was awarded in January by a federal jury in a defamation case brought by writer E. Jean Carroll.
Mr. Trump has long bragged about being a billionaire. Although much of his wealth is in real estate, he testified under oath less than a year ago that he had “significantly more than $400 million in cash.” And after last month’s verdict, Alina Habba, one of Mr. Trump’s lawyers, said he is “worth it.”billions and billions and billions of dollars‘ and ‘happens to have a lot of money.’
But a filing Wednesday by Ms. Habba and other lawyers raised questions about how liquid he actually is. They offered a New York appeals court a bond of just $100 million while he appealed. Mr. Trump’s lawyers said he would likely have to sell properties to secure the full $454 million that Judge Arthur F. Engoron set.
Unless the appeals court gives him a break, Trump would have to post at least the full amount in cash or bond, plus an additional percentage to account for interest. If he fails, the state’s attorney general, Letitia James, who brought the fraud case, will has warned that it will move quickly to seize some of its buildings.
How much cash does Mr. Trump have?
Mr. Trump has been exaggerating his wealth for decades and his company, the Trump Organization, is privately held. That means it is not subject to the same oversight as government companies like Apple or Microsoft.
Mr. Trump’s current cash position is most likely known only to a handful of people close to him.
In early 2017, as Mr. Trump prepared to leave for the White House, his reserves were running low, according to prosecutors from the attorney general’s office: He had about $86 million in cash, $26 million of which was tied up in a partnership . and not easily accessible. That was considerably less than in previous years, documents show.
Since then, Mr. Trump has sold assets, including his license to operate a golf course in the Bronx and a lease on a hotel in Washington, D.C. Its revenue from hotel rentals alone was about $130 million before taxes, according to a filing. in the case of Mrs. James.
Can he book assets for the bonds?
Mr. Trump’s lawyers have said they plan to seek bail rather than post cash as they pursue their appeal.
An appellate bond is a bond filed with the court by a financial institution that promises that a judgment will be paid. But bonds with an appeal are risky, and a company offering one would lose out if Mr. Trump loses.
Defendants usually pay high fees to the company, up to 3 percent of the bond, and must provide collateral for the full amount. Companies usually need cash, stocks and bonds primarily: items that can be liquidated quickly.
In New York, a defendant also typically owes the plaintiff 9 percent interest until judgment is entered or the appeal is resolved, an amount that is reflected in the size of the bond.
A 2023 public filing on Mr. Trump’s finances showed that he had investments, including stocks and bonds, worth hundreds of millions of dollars that he could pledge as collateral, assuming he still owns them. Their exact value is not known, as he only had to specify the value in a wide range. He could also sell a building to free up cash, but that could take months; In both cases, he must deposit cash or a deposit within a few weeks.
Mr. Trump also owns a stake in Trump Media & Technology Group, his social media company, which could be worth as much as $4 billion if a long-delayed merger closes this month. But Trump’s shares are subject to a lock-up period and come with market and other risks, making them unattractive collateral.
What comes next?
On Wednesday, a single appellate judge denied Trump’s request for damages in the fraud case. This month he will get another chance when his lawyers are heard by a panel of five appellate judges. For the time being, he must transfer cash or a deposit before March 25.
Then there are the cases involving Mrs. Carroll.
Mr. Trump has already deposited about $5.6 million in Manhattan federal court as he appealed in May a verdict in which a jury awarded her $5 million after finding that Mr. Trump sexually assaulted her decades ago had abused her and then defamed her in a social media post in 2022.
But Mr. Trump’s lawyers last month asked a judge, Lewis A. Kaplan, to delay execution of January’s $83.3 million judgment until Mr. Trump’s post-trial motions were resolved. Mr. Trump still has about a week to issue a bond.
Mr. Trump’s lawyers said in a Feb. 23 filing that their motions would focus on the “excessiveness” of the ruling. They argued that this would require “a significant bond issue, which entails very substantial, non-recoverable financial costs.”
“These charges clearly constitute irreparable harm,” his lawyers wrote.
As an alternative, Mr. Trump’s lawyers asked the judge to allow Mr. Trump to post bail “in a fraction of the amount” of the judgment until the claims are settled.
Ms. Carroll’s lawyers urged the judge on Thursday to deny the request.
They argued that Mr. Trump had not provided information about his finances or the nature and location of his assets; he had not specified what percentage of his assets were liquid, nor had he explained how Ms Carroll would go about collecting; and he did not address the risks of the separate verdict obtained by Ms. James’ office or the 91 felony charges Trump faces “that could permanently end his career as a businessman.”
“He is simply asking the court to ‘trust me,’” Ms. Carroll’s lawyers wrote, “and, in a case involving an $83.3 million judgment against him, offering the court the equivalent of a paper napkin , signed by the least reliable borrower. .”
Kitty Bennett research contributed.