Court agrees to temporarily block collection of Trump civil fraud judgment

(continued from Page 3) One possibility would be for James’ office to go through a legal process to have local law enforcement seize properties, then seek to sell them off. But that’s a complicated prospect in Trump’s case, noted Stewart Sterk, a real estate law professor at Cardozo School of Law.

“Finding buyers for assets of this magnitude is something that doesn’t happen overnight,” he said, noting that at any ordinary auction, “the chances that people are going to be able to bid up to the true value of the property is pretty slim.” Trump’s debt stems from a monthslong civil trial last fall over the state’s allegations that he, his company and top executives vastly puffed up his wealth on financial statements, conning bankers and insurers who did business with him. The statements valued his penthouse for years as though it were nearly three times its actual size, for example.

Trump and his co-defendants denied any wrongdoing, saying the statements actually lowballed his fortune, came with disclaimers and weren’t taken at face value by the institutions that lent to or insured him. The penthouse discrepancy, he said, was simply a mistake made by subordinates.

Engoron sided with the attorney general and ordered Trump to pay $355 million, plus interest that grows daily. Some co-defendants, including his sons and company executive vice presidents, Donald Trump Jr. and Eric Trump, were ordered to pay far smaller amounts.

Under New York law, filing an appeal generally doesn’t hold off enforcement of a judgment. But there’s an automatic pause if the person or entity posts a bond that covers what’s owed.

The ex-president’s lawyers have said it’s impossible for him to do that. They said underwriters wanted 120% of the judgment and wouldn’t accept real estate as collateral. That would mean tying up over $557 million in cash, stocks and other liquid assets, and

Trump’s company needs some left over to run the business, his attorneys have said.

Trump’s attorneys have asked an appeals court to freeze collection without his posting a bond. The attorney general’s office has objected.