Is Trump as rich as he claims? Why can't he pay his legal penalties?

Donald Trump is facing some serious legal issues and the payment of hundreds of millions of dollars for bond. Recently, eyebrows were raised when Trump's legal team claimed that the former president and business tycoon simply didn't have enough money to pay his legal penalties.

As reported by CNN, in the fall of 2023, Donald Trump was found liable for fraud. New York Judge Arthur Engoron ordered him to pay a $355 million penalty, which was later increased to $464 million with interest due to the civil fraud lawsuit filed by New York Attorney General Letitia James against Trump, his family and the Trump Organization.

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An article by the BBC points out that Donald Trump claims he cannot find a private company to guarantee the $464 million penalty even after approaching more than thirty companies. If Trump wishes to continue his appeal, he must pay the total cash amount or secure a bond from a bonding company.

Bonding companies guarantee the full amount of bond owed to the court by their clients for a fee; however, if their client (in this case Trump) loses the appeal, the company must pay the courts. Trump told the courts that it was "practically impossible" to secure a bond of that size.

In his statement to the court, Donald Trump said, "The bonding companies have never heard of such a bond, of this size, before." Trump's lawyers insisted in a court filing that they have spent "countless hours negotiating with one of the largest insurance companies in the world."

This news has left many wondering why Donald Trump can't cough up the cash. According to Forbes, Donald Trump is worth nearly $2.6 billion, and just last year, he testified he had $400 million in liquid assets.

The BBC highlights that Trump's lawyers claim that bond companies do not accept "hard assets such as real estate as collateral" for the bond but only cash or "cash equivalents", meaning investments which can be liquidated quickly and easily.

Undoubtedly, despite his wealth, Donald Trump is strapped for cash. After all, the $464 million judgment is not the only legal penalty he must pay. In January 2024, Trump was ordered to pay $83 million when he lost the defamation case to E Jean Carroll.

Former federal prosecutor Diana Florence spoke to the BBC about Trump's legal and financial situation. Florence believes that Donald Trump's legal team is playing "a delaying game as he appeals the verdict," and she thinks that "he might be out of rope".

Diana Florence told the BBC, "He's facing the very real possibility that the AG [attorney general] will begin to liquidate [his assets], and he's really dependent on whether a court is willing to give him more time."

Donald Trump was given a thirty-day grace period by the New York attorney general to find the funds. However, that expires on March 26. Will Donald Trump find a way out of this situation? Or will he have to liquidate his assets to pay off his fines?

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