State of New York vs Trump, et al - the civil fraud case against the Trump Organization

[MN-Skeptic]

Lisa Rubin
@lawofruby
Last week, Trump asked to stay enforcement of the Carroll verdict so he can pursue post-trial motions--and avoid posting a bond. Today, he made his move in the NY attorney general's civil fraud case.

In an emergency application to a NY appeals court, he vows to post a $100 million undertaking, but insists the usual 100-120 percent of the judgment is unnecessary here, both because the judgment itself is faulty & punitive and because the court-appointed monitor is in charge.

Here's the 1794-page filing, most of which are exhibits. Head to page 1742 for the brief:

https://iapps.courts.state.ny.us/nyscef ... gVywrDfQ==

[MN-Skeptic]

Adam Klasfeld
@KlasfeldReports

News

New York AG asks an appellate court to deny Trump's application to pause enforcement of the judgment pending appeal, including the disgorgement, monitoring, and loan prohibition.

Doc https://iapps.courts.state.ny.us/nyscef ... lkuSgaTA==

Background https://www.justsecurity.org/92637/what ... -and-more/

[MN-Skeptic]

A follow-up tweet from Adam Klasfeld adds:

Notable passage:

“Defendants all but concede that Mr. Trump has insufficient liquid assets to satisfy the judgment amount; defendants would need ‘to raise capital’ to do so.”

[Kendra]

A follow-up tweet from Adam Klasfeld adds:

Notable passage:

“Defendants all but concede that Mr. Trump has insufficient liquid assets to satisfy the judgment amount; defendants would need ‘to raise capital’ to do so.”

[raison de arizona]

Reading that, it would appear that tfg does not have the $400M cash he claimed to have.

Pity.

[MN-Skeptic]

Apparently this is a quote from Trump's filing as to why he shouldn't have to pay it all now -

Lacks Money.jpg (131.24 KiB) Viewed 669 times

[much ado]

That's what I wanted to hear. Trump is feeling pain.

ETA: Maybe he needs to sell that $100M jet he owns.

[RTH10260]

Who ever would want that outdated jet with interior of questionable taste

[chancery]

Big jets depreciate fast, especially when they are older, inefficient models. A 2021 CNN article stated that 757s similar to Trump's were up for sale at a market price of about $7 million - $10 million.

[Volkonski]

Judge in Trump civil fraud case receives envelope with white powder

https://thehill.com/regulation/court-ba ... press.coop

The judge who oversaw former President Trump’s civil fraud case received an envelope with white powder Wednesday morning, prompting an emergency response to the downtown Manhattan courthouse, according to court officials.

The incident occurred around 9:30 a.m. Wednesday at the New York County Courthouse, where court staff opened an envelope addressed to Judge Arthur Engoron that contained a white powdery substance, court spokesperson Al Baker confirmed to The Hill.

Authorities closed the office where the letter was opened and the affected staff were isolated until preliminary testing showed the substance was nonhazardous, Baker added.

“Justice Engoron had no exposure to the letter or the powdery substance,” he said. “The Court remained open. The matter is under investigation by law enforcement.”

The New York Police Department confirmed its 5th Precinct responded to the incident after a 911 call came in for a suspicious powder that fell onto a court officer’s pants. Police did not confirm Engoron was the named recipient of the letter.

Engoron was subject to multiple threats around the time of Trump’s civil fraud trial, including a bomb threat at his home in Long Island last month. Additional security was added out of an abundance of caution following the threat.

[chancery]

I've very briefly skimmed parts of the memorandum and the supporting affidavit of counsel.

While I believe that Trump probably does have non-frivolous appeal issues, this memorandum seems to do a good deal of deliberately missing the point.

For example: "Another example of Supreme Court’s lack of understanding and analysis, as well as its willful failure to consider unrebutted evidence, is its absurd valuation of Mar-a-Lago. Supreme Court valued Mar-a-Lago at $18 million when the unrebutted testimony places its value at over $1.2 billion." Mem. at 8 n.8, (pdf at 1760). The testimony offered by Trump was in fact rebutted, and also rejected as lacking evidentiary value, among other reasons for ignoring the deed restrictions on Mar-a-Lago. See Order Granting Partial Summary Judgment at 25-27; Final Decision and Order at 41, 49, 58, 66-67.

However, what really struck me was the absence of any support whatsoever for the claim of irreparable harm. Trump should have put in an affidavit by someone with knowledge summarizing his financial position. There's nothing, zip, not even a flimsy attorney's affidavit "based on my familiarity with the papers and proceedings in the action."

Instead, citing to nothing, he makes the following squirrelly assertions: "properties would likely need to be sold to raise capital under exigent circumstances" and "[t]he ownership interest in 40 Wall Street is likely alone sufficient to satisfy any judgment." Mem. at 15-16 & n.11 (pdf at 1767-68).

These assertions don't sound incredible, but they wouldn't ordinarily be accepted without support. The First Department might let this slide, but it shouldn't.

[chancery]

Raffi has been reading footnotes that I skipped.

https://twitter.com/RMFifthCircuit/stat ... 4750663978

Raffi Melkonian
@RMFifthCircuit

If you scroll through this, you discover that one of Trump's reasons for a stay without a bond is that some truckers on twitter said they would punish New York for the verdict by refusing to haul products to New York.

It's laughable.

I'm totally serious. Also, some guy threatened to move to Florida.

The post includes an image of this portion of footnote 8 from page 9 of the memorandum:

Steven Calabresi, President Trump’s Kafkaesque Civil Trial in New York State, The Volokh Conspiracy (Feb. 18, 2024); Jay Tucker, New York’s Trump Fraud Findings Refute Judge’s Conclusion, American Thinker (Feb. 22, 2024); Arthur Fergenson, Stalinist $370M judgment against Trump should be vacated immediately, Fox News (Feb. 20. 2024); Jonathan Turley, Democrats weaponized justice system to punish Trump in business case, N.Y. Post (Feb. 19, 2024); Ed Kozak, FedSoc Founder: Trump NY Case a Travesty on Par with Killing of Hamilton, The National Pulse (Feb. 19, 2024); Steven Calabresi, New York’s Civil Lawsuit against Trump is Unconstitutional, Volokh Conspiracy (Jan. 14, 2024), David Zimmerman, Truckers Vow to Cut Off Deliveries to NYC in Protest of Trump’s $355 Million Civil-Fraud Ruling, National Review (Feb. 18, 2024); Wayne Allen Root, Wayne Root: Let “The Great New York City Boycott” Begin. Conservatives to New York: “Drop Dead.” Gateway Pundit (Feb. 18, 2024); Sumanti Sen, Truckers refuse to accept loads from NYC after Donald Trump slapped with a $355M fine in fraud case, Hindustan Times (Feb. 18, 2024); U.S. truckers refuse shipment to New York City after Trump banned for NY business in fraud trial, mint (Feb. 18, 2024); Charles Creitz, Trump’s penalty could cause NY biz exodus to FL, as New York State becomes ‘legal banana republic’: experts, Fox News (Feb. 16, 2024); Arkaprovo Roy, New York City Shipments to Stop after Trump Civil Fraud Verdict? Truck Driver Threatens Boycott in Viral Video, TimesNowWorld (Feb. 18, 2024); Chris Donaldson, Truckers talk stopping shipments to NYC in protest of $350M+ Trump fine, BPR Business & Politics (Feb. 18, 2024); Geeta Pillai, Truckers Rally in Support of Trump: A Bold Protest Disrupts NYC Supply Chain, bnn (Feb. 18, 2024); Kelly Rissman, Truckers for Trump are refusing to drive to New York City after $350m fraud ruling, Independent (Feb. 18, 2024); Patrick Reilly, Trump-loving truckers refusing to drive to NYC after his $355 million fraud ruling, N.Y. Post (Feb. 18, 2024), Report: Truckers to Deny Loads in NYC to Protest $350 Million Ruling Against Trump, The Paradise (Feb. 18, 2024); Charlie Nash, New York Resident Greg Gutfeld Threatens to Move to Florida Over Trump Being Fined for Fraud, Mediaite (Feb. 21, 2024), Jeffrey Lord, Truckers Target Trump- Hating New York Judge, The American Spectator (Feb. 19, 2024); Charlie McCarthy, MAGA Truckers Say They’ll Refuse NYC Loads After Trump Verdict, Newsmax (Feb. 18, 2024); Pro-Trump Truckers to Halt Rides in NYC after Ex-President’s $355M Fine, La Voce di New York (Feb. 18, 2024); Genevieve St. Clair, Truckers Boycott NYC Deliveries After Trump’s Civil Fraud Trial Outcome, Bollyinside (Feb. 17, 2024); Steven Calabresi, Donald Trump is the Victim of Selective Prosecution, The Volokh Conspiracy, (Feb. 10, 2024); Michael Reagan, Mob Rule Law Convicts Trump of Crimeless Crime, Newsmax (Feb. 20, 2024); Joseph Moreno, The ruling against Trump is perverse in true New York fashion, The Spectator World (Feb. 17, 2024).

Note the citation to "friend of TFB" (/snark) Wayne Allen Root, writing at that trusted publication Gateway Pundit.

[chancery]

Here's the NYAG's reply. https://iapps.courts.state.ny.us/nyscef ... lkuSgaTA==

I haven't looked at it.

I got it from Adam Klasfeld @KlasfeldReports, who has a couple of posts about the reply, but I haven't looked at them either.

[Rolodex]

Industry and loan bans being lifted would imply to me that he needs those...iow, he doesn't have the cash. I wonder if he'll have to prepare new financial statements for any loan applications. LOL so meta. Can they sell the properties at fire sale prices if that's all they can get? Trumps argument was "what if I sell assets and then win the appeal."

ETA: the motion was denied, which it doesn't really say in the tweet

[chancery]

The NYAG's reply asserted that the ban on obtaining loans will not interfere with obtaining an appeal bond:

As an initial matter, contrary to defendants’ contentions (Mot. at 15, 25), OAG does not interpret such a bar to apply to sureties that could provide defendants an appeal bond, particularly as the mechanisms for obtaining such a bond are set out by statute,

That's perhaps a little weak, and maybe the judge wanted to play it safe with anything that might interfere with obtaining a bond.

[Rolodex]

Yeah the AG is going to do all the sticking it to him she can, but I think it was the better decision to lift the ban so they can get the show on the road and get the judgment paid (or bond paid). He'd have filed to get rid of that loan ban, delaying things again and the judge cut that option out from under them.

[raison de arizona]

tfg told the trial court under oath that he had like $3B in real assets and $400M cash, yes? That is my recollection. Will there be any comeuppance for him now that he is telling the appellate court that he only has $100M cash? Or is the water under the bridge (or am I remembering wrong?)

[Volkonski]

White Powder Sent to Offices of Trump Judge and N.Y. Attorney General

https://www.nytimes.com/2024/02/28/nyre ... trump.html

One envelope containing the powder was found Wednesday morning at the New York State Supreme Courthouse in Lower Manhattan, officials said. The court building, at 60 Centre Street, contains offices belonging to Justice Arthur F. Engoron, the judge who oversaw Mr. Trump’s civil trial.

Another envelope was received Tuesday at 1 Empire State Plaza in Albany, according to the New York State Police. Attorney General Letitia James of New York, who brought the case against Mr. Trump, has offices in the building. In addition to the State Police, the Albany Fire Department, the F.B.I. and a hazmat team responded.

The powder contained in both letters was found to be harmless.

Police officers responded to a 911 call at 9:29 a.m. Wednesday regarding the discovery of a suspicious powder at the courthouse. A court officer had opened an envelope, and white powder fell onto his pants, the police said.

Judge in Trump civil fraud case receives envelope with white powder

https://thehill.com/regulation/court-ba ... press.coop

The judge who oversaw former President Trump’s civil fraud case received an envelope with white powder Wednesday morning, prompting an emergency response to the downtown Manhattan courthouse, according to court officials.

The incident occurred around 9:30 a.m. Wednesday at the New York County Courthouse, where court staff opened an envelope addressed to Judge Arthur Engoron that contained a white powdery substance, court spokesperson Al Baker confirmed to The Hill.

Authorities closed the office where the letter was opened and the affected staff were isolated until preliminary testing showed the substance was nonhazardous, Baker added.

“Justice Engoron had no exposure to the letter or the powdery substance,” he said. “The Court remained open. The matter is under investigation by law enforcement.”

The New York Police Department confirmed its 5th Precinct responded to the incident after a 911 call came in for a suspicious powder that fell onto a court officer’s pants. Police did not confirm Engoron was the named recipient of the letter.

Engoron was subject to multiple threats around the time of Trump’s civil fraud trial, including a bomb threat at his home in Long Island last month. Additional security was added out of an abundance of caution following the threat.

[chancery]

ETA: the motion was denied, which it doesn't really say in the tweet

The motion was not denied.

This was not an argument on the motion for a stay of enforcement. This was argument before a single judge on an emergency application for a temporary stay pending decision on the motion for a stay of enforcement, which will be decided by a full panel (4 or 5 judges) of the First Department, probably within a couple of weeks.

The emergency application was mostly denied (no stay of enforcement of the damages award, no stay of appointment of compliance director), but granted in part (OK for individuals to act as officers and OK to obtain loans from financial institutions registered in NYS).

[Rolodex]

Yes, I used the wrong term.

[chancery]

No problem! I shouldn't have responded so curtly

[Rolodex]

No problem! I shouldn't have responded so curtly

No worries! I was in a hurry and read too quickly from my sources. It's a complicated situation with lots of motions, filings etc plus IANAL, so there's that. I'm here to learn and I prefer to have a correct understanding (well, what my tiny brain can absorb!) Plus in this case, what's gonna happen is what's gonna happen whether I understand it or not.

[keith]

Big jets depreciate fast, especially when they are older, inefficient models. A 2021 CNN article stated that 757s similar to Trump's were up for sale at a market price of about $7 million - $10 million.

Yeah, everytime I see Turnip and Mercedes posing in some grotesque abomination posing room, I think he thinks the place is worth how much? Who else would pay for such a gawd-awful eyesore? It's only worth what someone is willing to pay.

Once when I was contemplating a renovation at my house and I asked the architect about some feature or other that would suit me just fine, he said, yeah but think about when you want to sell it, you would be overcapitalising for the neighbourhood and unlikely to get your price. And I asked have you looked at the neighbourhood and seen what is happening around here? If the pattern holds, the first time a new buyer enters this house after closing, he'll be driving a bulldozer. Turns out he and I were both wrong. After my renovation the rest of the street stopped being bulldozed and people were renovating to a higher standard too. And the ones that were bulldozed are now the eyesores and the ones not getting the asked for prices.

There just ain't NOBODY gonna buy Mar-a-lago for Turnip's renovations - and when it does get sold it's just as likely to be bulldozed to make them disappear.

[Fiascoist]

The fact that TFG doesn't want to put up the totality of his cash (400 million) doesn't mean he doesn't have it. Businesses need cash and a business the size of his (whether ownership or licensing or whatever new fangled idea he comes up with especially if it's all a house of cards) needs a lot of cash. I am not sure if this is even a lot of cash, too many zeros for me.
While, I am happy as a clam he is having to make public his funding questions, the acts of these filings are nothing more than prudent decision making on somebody's part. (Not TFG, prudent is not a term to be used in any definition of him)
But I do enjoy watching him squirm.

[johnpcapitalist]

The fact that TFG doesn't want to put up the totality of his cash (400 million) doesn't mean he doesn't have it. Businesses need cash and a business the size of his (whether ownership or licensing or whatever new fangled idea he comes up with especially if it's all a house of cards) needs a lot of cash. I am not sure if this is even a lot of cash, too many zeros for me.

Trump doesn't actually need that much cash for capital investment. Historically, he's been so inept that he has had to sell equity stakes in his older projects to stay solvent. For the last 20+ years, he's been basically a marketing organization, slapping the Trump name on projects to raise the value, and collecting sales fees.

I don't think he's trying to keep a lot of dry powder because the office real estate market in the US is suffering massively, especially in major downtown markets, where he (and the Kushner family) have been strong in the past. I wouldn't be putting money into commercial real estate today. I think he's trying to conserve cash for legal fees, which is what's keeping him out of jail. I seem to recall numbers like $200 million or even more spent on the various civil and criminal suits. He's probably figuring that he can't both pay the fines and put up a criminal defense, and he's not going to win if he dumps all the legal "talent" and goes with a public defender. So trying to negotiate out of judgments is the only option he's got.