Attorney General Letitia James has filed a “Transcript of Judgment” with the Westchester County Clerk’s Office that could set the stage for the seizure of Trump-owed properties in Westchester. Donald Trump is facing a deadline of Monday, March 25 to post a required bond or make a cash payment as required to secure payment of the $464 million judgment in the civil fraud case James brought against Trump and others. Judge Arthur Engoron found the defendants guilty of fraud and keeping false business records. If the bond is not posted or a payment not made Trump and his co-defendants would lose the right to appeal the guilty verdicts and Attorney General Letitia James could begin action to seize assets. The amount owed continues to rise daily as interest on the unpaid amount is added.
Trump’s attorneys have told the court that they were unable to obtain a bond for the full mount. They asked that the deadline for posting a bond or making a payment be extended for at least a month. They also proposed reducing the amount required to be put up to $100 million. James office responded that Trumps attorneys did not provide evidence to demonstrate that they had tried but were unable to find an underwriter for the bond. Her office suggested that Trump could have tried to get small segments of the required bonding from a number of different sources.
The Business Journal has reviewed the judgment document, which was filed at the Clerk’s Office on March 6 at 9:03 a.m. It shows the judgment creditor as being “People of the State of New York” and that the attorney for the creditor is Letitia James.
The document shows that there were six separate judgments entered against various people and entities named as debtors. They are for: $243,326, 767.10; $20,421,141.98; $63,580,273.97; $4,659,175.84; $4,659,175.84; and $101,095.89.
One of the two judgments for $4,659,175.84 is against Donald Trump, Jr., The other is against Eric Trump. The judgment for $101,095.89 is against Allen Weisselberg, who was for many years the Trump Organization’s CFO.
The debtors for the other judgment amounts variously include: Donald J. Trump; The Donald J. Trump Revocable Trust; The Trump Organization, Inc.; Trump Organization LLC; DJT Holdings LLC; DJT Holdings Managing Member; Trump Endeavor 12 LLC; 301 North Wabash Venture LLC; Trump Old Post Office LC; and 40 Wall Street LLC.”
Trump’s notable properties in Westchester include the Seven Springs Estate and the Trump National Golf Club Westchester. The Seven Springs property, which spans 212 acres, is located in Bedford, Armonk and Chappaqua. The Trump National Golf Club Westchester is located in Briarcliff Manor.
The Trump Organization reported that it acquired the Seven Springs Estate property in 1996. The mansion on the property was built in 1919 by Eugene Meyer, who was publisher of the Washington Post. It has 60 rooms in its 50,000 square feet and features three swimming pools. H. J. Heinz, a friend of Meyer, built his own mansion on the property. According to the Trump Organization, the property was being used as a retreat for the Trump family.
(CNN) — The New York attorney general’s office has filed judgments against Westchester properties owned by Donald Trump or entities he controls. This appears to be the first indication that the state is preparing to try to seize Trump’s Trump National Golf Course Westchester and private estate north of Manhattan known as Seven Springs.
State lawyers entered the judgments with the clerk’s office in Westchester County on March 6, just one week after Judge Arthur Engoron made official his $464 million decision against Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization.
Entering a judgment would be the first step a creditor would take to attempt to recover property. Additional steps, such as putting liens on assets or moving to foreclose on properties, or taking other actions in court would follow, if the asset is going to be seized.
The judgment is already entered in New York City where Trump’s properties including Trump Tower, his penthouse at Trump Tower, 40 Wall Street, his hotel abutting Central Park, and numerous apartment buildings are located.
Judgments have not been entered in Florida counties including Miami or Palm Beach where Trump’s Mar-a-Lago property and the Trump National Doral Golf Club and resort are located or Cook County, Illinois, where Trump’s hotel in Chicago is located, according to a review of records Thursday by CNN.
Trump now has four days to satisfy the judgment or sway an appeals court to allow him to post a smaller amount or defer posting the payment until after the appeal.
Trump attorneys push back on AG’s bond ideas
Separately, Trump’s lawyers pushed back Thursday on several of the suggestions the New York attorney general’s office made about how he can pay bond.
That includes the idea that Trump could get several underwriters to secure bonds totaling the judgment – saying it would still require Trump to post half a billion dollars in cash or stock – money he doesn’t have.
Trump’s legal team argued in the filing that the New York attorney general’s office shouldn’t be able to challenge their claims.
If no arrangement is met, New York Attorney General Letitia James has said she will take steps to seize assets.
The attorney general’s office on Wednesday said that it’s common for large companies to post billion-dollar bonds and suggested Trump should have posted real estate with the court.
“The suggestion is both impractical and unjust. The Attorney General cites no New York case law to support this contention. In any event, from the perspective of risk, the Attorney General’s proposal of a ‘court-appointed officer’ to ‘hold real estate’ is functionally equivalent to what Supreme Court has already imposed through the requirement of a court-appointed monitor to oversee Defendants’ business operations,” Trump’s lawyers wrote.
Trump’s lawyers also said to be forced to sell properties at a fire sale would cause irreparable injury because they could not later recover the property if they were to win an aspect of the appeal.
“By demanding an undertaking in the full amount of the judgment in order to appeal, the Attorney General and Supreme Court have sought to impose a patently unreasonable, unjust, and unconstitutional (under both the Federal and New York State Constitutions) bond condition,” they wrote.
Trump on Thursday continued posting on social media about the difficulties he is having securing a bond.
Trump said in a new Truth Social post that putting up the money is “VERY EXPENSIVE” and said it was “not possible for bonding companies to do in such a high amount.”
Judge gives monitor expansive duties including review of efforts to obtain bond
Thursday, Engoron expanded the role of the monitor overseeing the Trump Organization to include more expansive oversight of Trump’s real estate business’ internal financial practices.
Engoron also ordered the Trump Organization to supply detailed information to the monitor about its efforts to obtain bonds to cover judgments.
“The Trump Organization shall inform the monitor, in advance, of any efforts to secure surety bonds, including any financial disclosures requested or required, any information provided in response to such requests, any representations made by Trump Organization in connection with securing such bonds any personal guarantees made by any of the defendants, and any obligations of the Trump Organization required by the surety,” the judge ordered.
Engoron laid out a timeline of certain steps the Trumps must take within the next month, including providing the monitor, retired Judge Barbara Jones, with full access to its day-to-day financial operations.
In two months, the judge said, the monitor is ordered to submit a report “describing her assessment of the Trump Organization’s internal controls and shall recommend proper internal controls for the Trump Organization.”
He also put the Trumps on notice that he may order them to implement the monitor’s recommendations.
Engoron also empowered the monitor to have copies of the Trump Organization’s monthly bank and brokerage statements, be notified in advance of any transfers above $5 million, be provided information about the creation or dissolution of business entities, and be informed in advance of any debt financing.
CNN’s Kate Sullivan contributed to this report.
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