News
By Priscilla DeGregory
Published
Feb. 7, 2024, 6:53 p.m. ET
According to experts, even if Donald Trump appeals his New York defamation verdict and a pending civil fraud trial, he may still be required to pay hundreds of millions of dollars, dealing a significant blow to his finances.
A forthcoming verdict in the fraud case brought by New York Attorney General Letitia James over the Trump Organization’s business dealings could result in Trump facing a $370 million liability.
Last month, a Manhattan federal jury ruled that he must pay $83 million to E. Jean Carroll for defamation.
Despite any appeals, legal experts indicate that Trump may need to provide a potential $453 million as an “undertaking,” or security, in these two cases.
New York civil lawyer Melissa Levin stated, “If we’re to believe Trump’s claims about his wealth, posting an undertaking of this magnitude (plus interest) while the appeal is pending shouldn’t be a problem for him, financially speaking. However, if we consider the actual numbers and facts we’ve been privy to regarding how much he’s truly worth, this could be a huge blow to the viability of his business and his personal financial stability.”
Under New York law, if Trump chooses to appeal, he would have to pay the full amount owed to Carroll and could also face hefty interest if the appeal is unsuccessful.
Both Levin and another civil lawyer, Imran Ansari, mentioned that Trump could pursue a security bond to assist with covering the money, but it would come with significant fees and interest.
In the event that Trump faces difficulty in providing the cash or securing a bond, he could consider seeking bankruptcy protection. However, this option may not be favorable for Trump as it would require the disclosure of detailed financial information, including assets and debts, which may not be ideal as he runs for another presidential term in the 2024 election, Ansari added.
During the civil fraud trial, Attorney General James alleged that Trump had inflated his net worth over a decade to secure better loan and insurance terms.
Manhattan Supreme Court Justice Arthur Engoron is anticipated to issue a verdict in the non-jury trial by mid-February.
Before the trial, the judge found Trump liable on one of the AG’s main fraud claims and revoked the business license for the family real estate empire. However, this portion of the decision has been put on hold pending appeal.
In addition to the $83 million defamation ruling, Trump was ordered to pay $5 million to Carroll after being found liable for sexual abuse and defamation. He has an appeal pending in the first Carroll case.
Trump also faces four criminal cases in separate states, with the first scheduled to start in Manhattan on March 25 over alleged “hush money” payments.
He has maintained his innocence and labeled the criminal and civil cases against him as politically motivated and “witch hunts.”
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