Donald Trump’s legal woes are a consistent headliner in the news, given that there are new reports being made every week. His various criminal and civil suits across the country are making a new name for the former President, and it’s one that he might not like: poor.
Defamation Damages
Trump was recently ordered to pay more than $83 million in damages to E. Jean Carroll in a second defamation lawsuit. Trump was found liable for sexually assaulting Carroll in the first defamation suit of 2023, and then she sued him again after he took to his social media site, Truth Social, to bash her publicly.
Not only was Trump found liable and ordered to pay damages in the first suit, but his legal team failed to prove his innocence in the second suit as well, ordering him to pay the significant sum of damages listed above. However, the defamation suit is the least of Trump’s potential civil damages, and the big one is still waiting to be ruled on.
New York v. the Trump Organization
One of the cases that has been making a splash in the headlines is out of New York, where Trump is facing multiple charges for having defrauded the state of New York through his corporation, the Trump Organization.
The case was first brought against Trump in the fall of 2022. New York Attorney General Letitia James filed a civil suit against Trump, his adult sons, and his former aide Allen Weisselberg, alleging a multi-year scheme where Trump fraudulently reported the value of his properties in order to lower his taxes, or gain more favorable loan terms with banks.
Trump Found Guilty of Fraud
The case was taken to court, where Judge Arthur Engoron heard the arguments and interviews with the witnesses. He ruled against Trump and his co-defendants in September of 2023, almost a year after the case was first brought to Trump’s doorstep.
In his ruling, Engoron stated that many of the defendants’ claims were “clearly” fraudulent, and that he didn’t need a trial to hear them. Sanctions were also placed against Trump’s lawyers for making repeated frivolous arguments, and the case has been in limbo in the months since, waiting for the final number of damages to be ordered.
How Much Will He Have to Pay?
Since Engoron already ruled that Trump and his co-defendants’ were liable for fraud, the only thing that’s left to be determined is the amount of money that Trump will have to pay the state of New York for the fraud. Additionally, the state of the Trump Organization is in limbo, with the potential of the company and all its holdings being dissolved by court order.
It’s possible that Trump could have to pay as much as $370 million to the state of New York over the fraud charges, which is a steep price to pay, particularly in light of recent tax and property paperwork that reveals that Trump is not nearly as wealthy or liquid in his funds as he wanted people to believe.
Waiting for a Final Ruling
The ruling is expected sometime during the first months of 2024, and many people have been eagerly waiting for the ruling. It is currently on hold while some deliberations take place, over the fact that Allen Weisselberg is considering pleading guilty to perjury.
Engoron shared a letter with both the Trump team and Letiticia James in regards to the ruling, stating that he was taking his time due to the potential perjury plea. If Weisselberg formally admits that he lied on the stand, it could invalidate everything that he said that was in defense of the Trump Organization during the court proceedings.
Legal Fees of Trump’s Co-Defendants
The projected payment of $370 million doesn’t include interest, and according to Forbes, a smaller portion – around $10 million – could be split between Trump’s sons, Eric and Donald Trump Jr., Weisselberg, and the Trump Organization’s former CFO, Jeffrey McConney.
Chris Mattei, an attorney who handled a similar fraud case in the past, stated that a financial obligation like that would be a significant blow to Donald Trump. He even alluded to the fact that Trump may have to file for bankruptcy protection, like Rudy Guiliani did in December of 2023.
The Trump Brand Damaged
Of course, unlike it was for Guiliani, bankruptcy would be devastating for the Trump brand. Mattei explained that the Trump name is worth over $10 billion, and filing for bankruptcy in such a public would could be devastating not only for the name value, but the companies it umbrellas.
Trump’s issues are not simply about net worth. Trump is allegedly worth somewhere between $2.6 and $4.5 billion, but in cash on hand, he only has approximately $420 million. Reports have been trickling in that he has been paying court fees and legal fees through his super PAC, Save America, which also paid Ivanka Trump’s legal fees in 2023.
Super PAC’s Paying Fees
Recent reporting reveals that Trump’s PAC’s paid out more than $50 million in 2023 in legal fees, and not only for himself. In addition to the legal fees paid out for Ivanka, he also paid legal fees for both Eric and Donald Trump Jr., and $11 million for Trump’s civil fraud case.
These revelations do not appear to be slowing Trump’s fundraising efforts. His campaign profited off the reveal of his mugshot in the Georgia RICO case, raising $4.18 million in 24 hours following the release of his mugshot, and $10 million in the following five days. Other candidates have called out Trump for lack of ethics in his campaign fundraising, but it doesn’t appear to have stopped Trump.
Ultimately Devastating, Either Way
The country is waiting with bated breath for the final Engoron ruling in the Trump fraud case, not only to hear the final damages but also to find out whether the Trump Organization is going to be dissolved once and for all.
Regardless of what ultimately happens, it appears that Trump’s reputation as a stellar businessman has been significantly dinged by these proceedings. Being found guilty of fraud will make it difficult for Trump to engage in business in the future, and that’s if he’s able to conduct business in New York at all after all is said and done with this trial.
