Donald Trump could be forced to recover hundreds of millions of dollars – dealing a “huge blow” to his wallet – even as he appeals the New York defamation ruling and the upcoming civil fraud trial, experts say.
The former president will get $370 million when a Manhattan judge issues a verdict this month in a fraud case brought by New York Attorney General Letitia James over the Trump Organization’s business dealings.
He was ordered by a Manhattan federal jury last month to pay sexual assault accuser E. Jean Carroll $83 million for defamation.
But even if Trump, 77, fights the ruling and appeals, he still has to come up with a potential $453 million “undertaking,” or security, in the two cases, according to legal experts.
“If we believe Trump’s claims about his wealth, posting an undertaking of this magnitude (plus interest) while an appeal is pending should not be a problem for him, financially,” New York civil attorney Melissa Levin told The Post Wednesday.
“However, if we consider the actual numbers and facts we know about his true worth,” Levin added, “this could be a major blow to his business viability and personal financial stability.”
Donald Trump is likely to be forced to collect hundreds of millions of dollars in two civil cases in New York – even as he appeals. AP
Under New York law, Trump – should he contest the decision as his lawyer has indicated – would for example have to hand over the full amount he owes Carroll to be held by the court until the appeal is resolved.
He will also have to pay high interest rates if he ends up losing the appeal.
Levin and another Big Apple civil attorney, Imran Ansari, said Trump could get a security bond to help him cover the money — but it wouldn’t be cheap.
“Given the large amount of the judgment, this will be a large bond, backed by collateral, and will be burdened with substantial fees and interest,” Ansari said.
Trump has been hit with a whopping $83 million for defaming E. Jean Carroll. William Farrington
If Trump has trouble raising cash or securing bonds, he could also potentially seek bankruptcy protection.
“However, what complicates that choice, and may make it an unlikely option for Trump at this point, is that filing for bankruptcy opens the book on Trump’s finances, including assets and debts, and he may not want that detailed information out there because he’s running for another presidential term in the 2024 election,” said Ansari.
James claimed during a civil fraud trial that for a decade the real estate mogul exaggerated his net worth by billions on annual financial statements to get better loan and insurance terms.
Manhattan Supreme Court Justice Arthur Engoron is expected to issue a decision in the non-jury trial by mid-February.
Before the trial, a judge had already found Trump liable on one of the AG’s major fraud claims and that he had revoked the business license for the family’s real estate empire. That part of Engoron’s decision has been stayed pending an appeal.
Trump faces another $370 million in penalties when Judge Arthur Engoron rules in a fraud case against the former president and his real estate empire. AFP via Getty Images
In addition to the $83 million Trump hit for defaming advice columnist “Ask E. Jean” in public statements from June 2019, a separate jury last year ordered the 45th president to pay Carroll $5 million after finding him liable for sexual abuse and defamation for statements he made on October 2022.
Trump has an appeal pending in the first Carroll case.
The embattled former commander-in-chief also faces four separate state criminal cases – the first of which is scheduled to begin in Manhattan on March 25 over alleged “hush money” payments.
Trump has maintained his innocence and claims the criminal and civil cases against him are politically motivated and a “witch hunt.”
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Source: thtrangdai.edu.vn/en/
