Opinion
By Steve Nicklas, 3-25-24
Sam Bankman-Fried’s greed precipitated the downfall of his FTX crypto exchange, resulting in billions of dollars in losses for clients.
In similar fashion, notorious swindler Bernie Madoff made off with a fortune, even from celebrity investors like Steven Spielberg. Both committed fraud that mirrored Ponzi schemes.
Prior to their criminal trials, Fried’s bond was set at $250 million. Madoff’s bond came in at $10 million. Even though the circumstances are different, Donald Trump’s bond following his civil trial dwarfs those amounts – at some $460 million. (The bond has since been reduced to $170 million by an appeals court; however, even this lesser amount is outlandish.)
Trump was likewise convicted of fraud, in a contrived civil trial. With no jury, facing a politically motivated judge and state attorney general. And Trump’s bond amount is one of the largest ever sought.
With Fried and Madoff, the bonds were set extraordinarily high to prevent them from fleeing. Fried was ranked 41st-richest on the Forbes 400 list and was one of the biggest Democrat political donors. And Madoff was a prominent socialite, running with the prestigious Hamptons crowd.
Regardless, Trump won’t flee. He’s running for president. Worse yet, no one was defrauded or lost money, while everyone profited in Trump’s financial activities.
While Trump’s bond is nearly impossible to obtain, he must post it (or pay it himself) before he can file an appeal. If not, Trump’s luxurious properties could eventually be seized. Consider the optics there in an election year.
“Now they’re making him do something that is not possible,” says Eric Trump, son of Donald Trump. “Bonds that size don’t exist in this country.”
In addition, in most civil trials, the monetary judgment is often deferred pending appeal. Not so in this kangaroo courtroom. It’s a coordinated scheme to bankrupt Trump and force him from the race for president.
Meanwhile, the ramifications for real estate investing are enormous. You have property rights threatened by an overreaching government.
“People across the planet invest in the U.S. because they know we’re the safe harbor,” says Eric Trump. “Do you know what damage that does to this country?”
It means a once-recognized safe harbor is now unsafe, facing turbulent seas and oppressive winds. Inside Trump’s trial, property valuations used in loan transactions many years ago were challenged.
For instance, the court valued the Mar-a-Lago estate in Palm Beach where Trump lives at $18 million. Its value is estimated at closer to $1 billion.
“The entire Florida real estate community is laughing,” says Eric Trump. “The entire real estate community is petrified.”
The state attorney has already filed a judgement against Trump’s golf course in Westchester, New York. If successful, this would threaten the livelihoods of hundreds of employees, like janitors and door men and contractors.
“All for their political agenda,” says Eric Trump. “They’re sending tremors across this country. People internationally are looking at this charade.”
Ironically, much of the case against Trump was thrown out by an appellate court. Even the statute of limitations was dismissed in various applications by the runaway, Trump-hating judge.
While small businesses are already suffering, a chilling effect has now engulfed New York City. “We’ll do it to him, but we won’t do it to you,” says Eric Trump about Gov. Kathy Hochul’s assurances to the state’s business community.
When state attorneys get involved in real estate, it’s often problematic. Especially with someone holding valuable, high-profile properties like Trump. It inevitably spooks others, like Shark Tank investor Kevin O’Leary. “This is not America,” O’Leary says.
If you think differently, you could be a target. It’s already happened. During the pandemic, government officials in blue states crippled small businesses with regulations and restrictions.
In a nutshell, Trump’s persecution is criminal, not civil(ized). “This is lawfare,” says Eric Trump. “The more they can hurt my father, the more they think it can benefit Joe Biden.”
Steve Nicklas is the managing partner of Nicklas Wealth Management in Fernandina Beach. He is also an award-winning columnist. His columns regularly appear in weekly newspapers in Northeast Florida and in Southeast Georgia, and on his website at www.SteveNicklasMarketplace.com. He has published a book, “All About Money,” of his favorite columns from the past 20 years. The book is available on Amazon. He has also done financial reports for area radio stations and for National Public Radio in Jacksonville. He can be reached by email at [email protected] or by phone at 904-753-0236.
The views expressed in this commentary are those of the author and do not necessarily reflect the official position of Citizens Journal Florida.
The long-running “Investing in Today’s Financial Markets” series will return in April to the Nassau County Council on Aging.
The classes cover stocks and bonds and mutual funds and popular vehicles like IRAs, 401ks and insurance/annuities. The series has been offered locally since 2001 by financial advisor Steve Nicklas, originating at the Florida State College campus in Yulee.
The upcoming schedule is: Investing in stocks, April 2; Investing in bonds, May 29; and Developing a financial plan, June 27. Classes begin at noon, and lunch is provided. The COA can be reached at 904-261-0701.
