Fri. Jul 26th, 2024

Judge wants details on Trump Organization attempts to get a bond in its civil fraud case

By 37ci3 Mar21,2024


The judge who made the decision a $464 million judgment It ordered Donald Trump, his company and the Trump Organization defendants in a civil fraud case to keep the court informed of any efforts to secure a bond before a Monday deadline.

Judge Arthur Engoron said Thursday that Trump’s company details a a court-appointed supervisor about attempts to obtain a bond that would prevent authorities from collecting on the decision while appealing last month’s decision. Former federal judge Barbara Jones must report regularly to Engoron.

“The Trump Organization will notify Monitor in advance of all efforts to secure surety bonds,” Engoron said, as well as “any personal sureties provided by any of the defendants,” including the former president.

The order — part of a larger ruling detailing and expanding the monitor’s duties — comes days before a deadline to secure a bond that would prevent Trump and his co-defendants from collecting on a judgment from New York Attorney General Letitia James. While they protested Engoro’s sentence.

A Trump building in midtown Manhattan
People walk past a Trump building in midtown Manhattan on Tuesday.Spencer Platt/Getty Images

In a court filing this week, Trump’s attorneys said they had been trying to get a bond for weeks but had been unsuccessful.

“The continued efforts of the defendants proved that the bond in the full amount of the judgment”is a practical impossibility“, Trump’s attorneys said in their filing that they asked the appeals court to stay Engoro’s decision without posting bond while appealing the award.

It’s unclear why the judge waited until now to request more information, but the language in Engoro’s order suggests he wanted to make sure the company he found was handling the case. “sustained” fraud by overinflating assets, giving no false information to bond companies.

The order, issued Thursday, requires the Trump Organization to tell the court’s supervisor what “financial disclosures have been requested or requested” by the bond company, “any information provided in response to such requests, any statements made by the Trump Organization regarding such bonds” and ” to make any statement”. Obligations of the Trump Organization required by the guarantor.”

Trump’s representatives did not immediately comment on Engoro’s order.

An automatic 30-day stay on Engoro’s sentence since last month expires Monday, when the state attorney general’s office can begin seizing Trump’s assets unless he posts bond or an appeals court intervenes.

Courts in New York typically require a person or company to post a surety bond for the entire amount of the judgment if they appeal, plus 9% annual interest on the award until the award is paid. Cash or a bond can be used to secure the full amount.

In a lawsuit filed this week, Trump and his co-defendants said he doesn’t have enough cash on hand and that most of his assets are in real estate, which bond companies refuse to accept as collateral. a garden.

Judge Arthur Engoron.
On January 11, 2024, in the Supreme Court of the State of New York, Judge Arthur Engoron.Michael M. Santiago/Getty Images

Other aspects of Engoro’s order include sanctions against Trump and his co-defendants, including senior Trump Organization executives Donald Trump Jr. and intended to ensure that Eric Trump does not attempt to hide or transfer assets.

The judge said the company must report cash or other assets totaling $5 million or more to the monitor “at least five business days in advance,” “including transfers to any individual defendant.” The company must also notify the monitor in advance of the dissolution or creation of any other corporate entities and provide monthly copies of all bank accounts.

“Defendants may not evade the terms of the Monitoring Order by transferring assets, re-incorporating existing business entities in other forms or jurisdictions, changing ownership of the entity, or undergoing any other form of restructuring or change in corporate form,” the decision reads.

Engoron first appointed Jones to a monitoring role for the company in November 2022. In Thursday’s order, he extended his tenure for three years and said his duties will include reviewing the company’s internal accounting controls and management and financial disclosures. Engoron also ordered him to report any activity that defies or annoys his orders.



Source link

By 37ci3

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *