faq
Because of a fraud case, Donald Trump has to raise almost half a billion dollars for bail by Monday. What options does the ex-US President have and what happens if he cannot meet the deadline?
Why does Trump have to pay bail?
Trump is currently not only making headlines as the likely US Republican presidential candidate – there are also a number of lawsuits underway against him. In addition to four criminal proceedings, the main proceedings of which have not yet begun, there are also civil proceedings against Trump.
In a civil trial in New York, Donald Trump and his sons Donald Junior and Eric were found guilty of having artificially inflated the assets of their real estate group over the years in order to obtain favorable conditions from banks and insurance companies.
Trump was therefore sentenced to a fine of around $355 million in the fraud case in February. With interest, the total amount now amounts to more than $450 million. His sons were also each ordered to pay $4 million plus interest. In total, the penalties amount to around 464 million dollars – around 427 million euros. Trump and his sons were also banned from running companies in New York state for a period of three years.
The former US president has appealed the verdict. That’s why the US judiciary is now demanding that he pay bail in the amount of the fine if his appeal fails. The deadline by which Trump must deposit the money with the judiciary or provide appropriate guarantees expires on March 25th.
Can Trump raise the money?
Trump offered in February to post bail of just $100 million. However, this offer was rejected by an appeal judge. In mid-March, his lawyers stated that their client was unable to pay the required amount of bail. This emerges from a published court document. Accordingly, paying the deposit is a “practical impossibility”.
Trump and his sons contacted 30 insurance companies, among others, as part of their unsuccessful search for guarantees. However, the insurers have rules that prohibit them from accepting real estate as security, the lawyers said. Many of the insurers also did not provide guarantees for more than $100 million.
Forbes magazine estimates Trump’s fortune at $2.6 billion. However, a large part of it is in real estate and is therefore not directly available to Trump. Almost a year ago, Trump stated that he had $400 million in liquid assets. However, these resources – if Trump has them – must already have been diminished by another lawsuit involving the defamation of columnist Jean Carroll. In this case, Trump already had to pay bail of $91.6 million. Trump recently claimed again that he had a significant amount of money in cash – almost $500 million, most of which he intended to use for the election campaign.
What happens if Trump doesn’t meet the deadline?
It is initially possible that New York Attorney General Letitia James will extend the deadline for Trump to post bail. If this doesn’t happen, the New York judiciary could freeze Trump’s bank accounts. It could also confiscate parts of Trump’s real estate. For the presumptive Republican presidential nominee, who always praises himself as a brilliant businessman, such legal action would not only be a major blow to his finances, but also to his image.
According to the Reuters news agency, the prosecutor’s office has already taken the first steps to carry out a possible seizure in Westchester County, New York state. Trump owns a golf course there – the “Trump National Golf Course Westchester” – and the “Seven Springs” property. However, the prosecutor’s approach is a normal preparation – this does not necessarily result in a seizure. Nevertheless, it shows that the public prosecutor’s office is at least considering a seizure.
What options does Trump have?
Trump’s first option is to appeal to the New York State Supreme Court to obtain an extension of the deadline. In order to raise the apparently missing money, Trump’s campaign team has already called on his supporters for donations and warned that he could lose his New York properties as a result of the proceedings. However, it is unclear whether the donations will be enough to pay the deposit.
Trump could also try to obtain bank loans. Or he could sell real estate or other assets and use the proceeds to pay the deposit. An option that he obviously dislikes. He wrote on the platform he co-founded, Truth Social: “I would be forced to take out mortgages or sell large assets, perhaps at fire-sale prices, and if I win the appeal they would be gone. Does that make sense?”
Another possibility would be for Trump to declare himself bankrupt. However, this could damage his image – especially in view of the upcoming election campaign in the USA. In addition, the New York public prosecutor’s office is then not prevented from continuing to obtain the requested money.
(Source: AFP, dpa, Reuters)