Attorney General Letitia James Targets Donald Trump’s Assets in Civil Fraud Case
Attorney General Letitia James is making headlines as she sets her sights on former President Donald Trump’s assets in a civil fraud case. If Trump fails to settle a hefty debt of $457 million by the March 25 deadline, his properties, including those in New York City and upstate New York, could potentially be sold at a sheriff’s auction.
But what happens to Trump if he doesn’t pay up? According to seasoned judgment-enforcement attorney Bernard D’Orazio, Trump is “fully within his legal rights to do nothing, and if he fails to pay, he cannot be put in jail.” D’Orazio explains that debtors are not typically jailed for failing to pay debts, unless they are found in contempt of court for not complying with court orders.
If Trump does fail to pay the debt, the enforcement process could involve freezing his liquid assets in New York-registered bank accounts and garnishing these funds through the sheriff’s office. This step is crucial in the enforcement process but does not immediately transfer the funds to the creditor.
James is also keeping an eye on Trump’s real estate assets, with properties like 40 Wall Street potentially being targeted for auction. The auction of Trump’s properties, including his Manhattan penthouse, could take many months, potentially aligning with significant political timelines.
Trump, who has been twice impeached, can delay the process through appeals and petitions for protective orders, which could extend the timeline further. Any auction would aim to cover the judgment amount and contribute to city coffers through a “poundage fee.”
The outcome of these enforcement actions could have a significant impact on Trump’s financial and real estate holdings, marking a pivotal moment in this high-profile case. As the legal battle unfolds, all eyes will be on how Trump navigates this latest challenge to his business empire.
