Former President Donald Trump could be facing a massive financial burden as he contends with a pair of civil verdicts that may result in over $400 million in penalties. Legal experts warn that these rulings could have a significant impact on his wealth and even dismantle parts of the company that fuels his fortune.
The Financial Tsunami Approaching Trump
Last month, Trump was hit with an $83 million judgment in the defamation case brought by E. Jean Carroll. However, the financial blow may not stop there. In the coming days, another verdict is expected, and it could potentially be multiple times the amount of the previous award. These combined penalties would spell disaster for Trump.
Trump’s campaign spokesman, Steven Cheung, remains confident in his boss’s success, claiming that the cases against him are nothing more than witch hunts. However, legal experts disagree, emphasizing the devastating consequences these verdicts could have on Trump’s financial stability.
The Mounting Debt: How Much Does Trump Owe Carroll?
Trump has been ordered to pay $83.3 million in the E. Jean Carroll defamation case. While he plans to appeal the ruling, he is still required to provide security for the award during the appeal process. This means Trump must come up with the cash, along with a 9% annual interest rate, while the appeal is ongoing.
The Potential Cost of Appeals
Appealing the judgments against him does not absolve Trump of his financial obligations. If he chooses to appeal the verdict in the E. Jean Carroll case or the New York attorney general’s civil fraud case, Trump will likely have to secure a bond, which will come at a significant cost. Surety companies can charge up to 5% of the judgment amount as a nonrefundable fee, potentially costing Trump around $4 million. He would also need to provide substantial collateral to secure the bond.
Trump’s Financial Worth and Options
According to financial documents entered as evidence in the fraud case, Trump claimed to have close to $293.8 million in cash and cash equivalents, with a net worth of $4.5 billion. However, the New York attorney general’s office disputes these figures, arguing that they include assets that are not readily liquid. Bond companies may also conduct their own valuations and financial evaluations.
In addition, Trump has been using money from political action committees supporting his re-election campaign to pay for legal expenses. However, the amount currently available in these PACs is unlikely to make a significant dent in the judgments against him.
The Future of the Trump Organization
The Trump Organization, comprised of hundreds of smaller businesses, could be severely impacted by these legal battles. The New York attorney general’s lawsuit seeks to cancel certificates for businesses involved in the alleged fraud scheme, a move that could trigger defaults on properties with outstanding loans. The dissolution of these businesses, combined with a lack of available cash, may lead to a cascade of financial difficulties.
Trump has already appealed the order regarding the certificates, and an appeals court has temporarily halted the dissolution pending further review.
Trump’s Response: Firm Financial Footing?
In a post on his Truth Social platform, Trump expressed confidence in his financial position, claiming that his commercial properties are not in default and that he has strong financial statements. He believes that the case against him should be dismissed for the good of the country.
While the legal battles continue, the potential financial repercussions for Trump remain uncertain. Only time will tell how these verdicts will impact his wealth and businesses.
Source: Trump could soon face over $400 million in legal penalties. Can he afford it?