Donald Trump's Cash Problem Is Used Against Him

New York Attorney General Letitia James said in a filing on Wednesday that Donald Trump has essentially conceded that he "has insufficient liquid assets" to pay his $355 million fine in the state's civil fraud case against him.

James is asking a state appeals court to deny Trump's request to not post a full bond following the judge's decision in the case.

The Context

On February 16, New York Judge Arthur Engoron ordered Trump to pay $355 million, plus interest, and banned him from doing business in New York for three years after he earlier found him liable for fraud.

Engoron's decision comes after James filed a lawsuit in September 2022 accusing the former president, his two adult sons Donald Jr. and Eric, the Trump Organization and two company executives, Allen Weisselberg and Jeff McConney, of fraudulently overvaluing assets to secure more favorable bank loans and tax deals. The other defendants in the case have received financial penalties and are banned from doing business in New York for a period.

Trump, the GOP's clear front-runner in the presidential race, has maintained his innocence, saying the case is politically motivated. His lawyers filed an appeal on Monday, but to do that they will need to put up a $454 million bond.

Engoron previously rejected a request from Trump's legal team to delay paying his fine, saying last week that they have "failed to explain, much less justify, any basis for a stay."

One of Trump's lawyers, Alina Habba, told Fox News last week that they "will be prepared" to post the bond. But the lawyers said in a Wednesday filing to the appellate division of New York's Supreme Court that the "exorbitant and punitive amount" of Engoron's judgment "would make it impossible to secure and post a complete bond."

Trump's lawyers did, however, say they plan to pay about a fourth of the judgment amount, posting a $100 million bond.

What We Know

Trump's legal team previously told the court it would need to "raise capital" to satisfy the judgment. James said allowing Trump to not post a full bond or deposit would leave her office with "substantial shortfalls" if the judgment is affirmed by the appeals court.

"A prevailing plaintiff is entitled to have her reward secured, and defendants have never demonstrated that Mr. Trump's liquid assets could satisfy the full amount of the judgement," James wrote in a letter to the Supreme Court's appellate division.

James urged the court to reject a stay on Engoron's judgment in full. But she said it would be "especially inappropriate" for the court to enforce a stay on the disgorgement awards in the case, the enforcement of continued supervision of the Trump Organization by an independent monitor, and having Trump and the Trump Organization barred from applying for loans from certain New York financial institutions for three years.

Newsweek reached out to Trump's legal team and his campaign via email for comment.

The Views

Jonathan Turley, an attorney and a professor at George Washington University Law School, defended Trump's request to delay the payment of his fine. He told Fox News' Bill Hemmer last week that Engoron's "decision is the decision of a single jurist and this party wants to have a review, but in order to do that, he was to pony up what is about a half a billion dollars."

Reacting to Engoron's decision to reject a stay last week, Turley said, "That has a gross unfairness to it when you combine the use of the law and the size of his judgment and then this requirement for a deposit. But he just simply brushed those aside and his tone almost bordered on the mocking."

Some on social media have questioned if Trump has the money to pay his bond.

On X (formerly Twitter), Ben Meiselas, an attorney and co-founder of the liberal news website MeidasTouch, previously shared Trump's initial request to delay the payment of his fine.

Meiselas wrote, "Translation: I don't have $400 million in cash to post a bond."

Ray Loewe, a vocal Trump critic, wrote: "This could signify that Trump is having cash flow problems as payment in full or bond posting must be done in 30 days."

What's Next?

In her letter on Wednesday, James said that the appellate court should "expedite briefing on and the resolution of the underlying stay motion."

She said that she is prepared to further address the issues presented in her filing at oral arguments on Trump's application for the stay.

James also told the court it should "set an appropriate briefing schedule" for the issue.

Update 2/28/24, 2:52 p.m. ET: This story has been updated with additional information and background.