According to a legal expert, the New York attorney general, Letitia James, possesses the authority to seize former President Donald Trump’s properties if he fails to settle his $450 million fraud judgment.
Greg Germain, a law professor at Syracuse University, stated that James could resort to “levying and selling” Trump’s assets to satisfy the judgment, regardless of Trump’s willingness to part with them.
“Whether Trump consents or not, the properties would likely be sold unless he manages to come up with the full judgment amount in cash,” Germain explained.
Germain clarified that Trump’s business assets are not immune to the judgment. “A judgment creditor can pursue any assets they wish unless they are shielded from execution, and business assets typically aren’t. Usually, creditors target the most liquid assets first,” he added.
Moreover, Trump faces the hurdle of requiring approval from a court-appointed monitor before disposing of crucial assets.
Letitia James Might Make Trump Sell His Assets (Credits: South China Morning Post)
In September, Judge Arthur Engoron, overseeing Trump’s fraud case, appointed retired judge Barbara Jones to supervise Trump’s business affairs in New York. Jones will nominate a business manager vested with authority over the sale of Trump’s business assets.
“The appointed business manager holds the final decision-making power regarding property operation or sale. While Trump may request a sale, he wouldn’t dictate the outcome. If he pushes for a sale, I anticipate the business manager would likely agree,” Germain elaborated.
Germain also predicted that Trump might seek a bond to cover legal expenses before pursuing an appeal. Failure to meet these requirements could spell financial trouble for Trump, potentially leading him to consider bankruptcy to delay enforcement while appealing, Germain suggested.
On February 16, Engoron ruled that Trump must pay approximately $355 million in penalties for inflating his asset values, a judgment retroactively including interest, bringing the total to around $450 million, as stated by James’ office.
Trump’s sons, Donald Jr. and Eric Trump, were individually ordered to pay over $4 million each. Despite being the leading contender for the GOP nomination in the 2024 presidential race, Trump maintains his innocence, attributing the case to political motives.
