United States – Despite claiming a whopping half-billion dollars in cash, Trump said he would rather spend it on his Run for President than fight the USD 454 million civil fraud judgment against him from New York.
Court Allows Trump to Avoid Cash Guarantee
The ex-president has convinced a court to exempt him from a demand that he gave as a financial guarantee, together with an appeal of the incredibly large damage. He didn’t provide any kind of document for his cash claim, and Trump’s lawyers have suggested that it’s not practical to have such cash on a bond when you still have to keep your business running and meet other obligations, as reported by The Associated Press.
A judge decided in February that Trump lied several times about his income in the financial statements submitted as security for loans and business deals. The judge dictated that he forbears the cash flows from certain real estate transactions and the funds he raised by having lower rates on loans. Trump says he did not mislead anyone.
As recently as Thursday, his lawyers made further requests in the courts to try to obtain a bond that would protect his judgment from being enforced because underwriters would not accept real estate property, unlike stocks and cash deposits, as personal assets. Thirty or more bonding companies told them no, they claimed.
Lawyers of Trump filed an appeal with the State Court of Appeal demanding a reversal of the earlier court order, which obliged him to pay a complete bond to stay on the course. The New York State Attorney General, Letitia James, has argued against Trump’s request to reduce the USD 2 million fine, saying this would prevent the state from easily getting the money if the appeals court ended up affirming the verdict.
To affix the Ethiopian bond, Trump’s lawyers may need 120% of the judgment, or more than USD 557 million. The appeals court has not made its ruling in this case.
Trump said he had enough money to at least pay the entire judgment in a post on his Truth Social platform on Friday, but he didn’t think he should have to spend it that way.
Trump’s Financial Claims and Legal Ramifications
“I have nearly USD 500 million in cash right now thanks to talent, hard work, and good fortune,” he said in all caps, adding that he intended to spend “a substantial amount” on his presidential campaign.
For the first time, Donald Trump hinted that he would self-finance his own campaign. He had been raising funds from external parties even before he knelt down in the office. From the outset, when he ran in 2016, Trump had no qualms in claiming that he was self-funding this campaign despite relying on donors.
“I do not need anyone’s money,” he said in a speech in 2015. “I am using my own money.” I’m not taking on the services of lobbyists. I’m not taking any contributions from donors. I don’t care. I’m really rich.”
However, by the end of the story, Trump had spent about USD 66 million of his own money on credit loans as well as others’ donations. This is much less as compared to the USD 100 million he always claimed.
Whether Trump has 500 million dollars in cash, as he stated, will be a point of legal fight about his assets. James, a Democrat, could commence efforts to collect on the court judgment she got against Trump by Monday unless the Appellate court stays the execution.
Uncertainty Surrounds Asset Seizure
James disclosed she will proceed with taking some of Trump’s assets though it wasn’t sure how immediately it could happen. They have not provided any statement concerning their projects.
Last April, Trump testified in a deposition in the civil fraud case that he had “substantially in excess of 400 million in cash”. However, that was before he sold his rights to manage a New York City golf course to the casino operator Bally’s for USD 60 million, which was before that. Before that, on June 30, 2021, in a financial statement, Trump’s cash and cash equivalents were USD 293.8 million, and his overall net worth was USD 4.5 billion, as reported by The Associated Press.
Trump’s fortune increased materially more on Friday after shareholders of a shell company that is publicly traded approved plans for merging with his media business that is Social Truth. Based on Wednesday’s stock price, the value of Trump’s stock in the company exceeds USD 3 billion, but sale-principal rules may prevent him from buying and selling newly issued shares for at least six months.