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NEW YORK (AP) – Donald Trump’s legal debt could now exceed $500 million.
A New York judge on Friday ordered Trump and his company to pay a $355 million penalty, plus interest, after ruling that the president manipulated net assets in financial statements.
The steep fine comes just weeks after President Trump was ordered to pay author E. Jean Carroll $83.3 million for damaging her reputation by accusing her of sexual assault. Another jury last year awarded Carroll $5 million from Trump for sexual abuse and defamation.
Combined with interest payments, the ruling could deal a staggering blow to Mr. Trump’s personal wealth, which is central to his political appeal. He has categorically denied any wrongdoing on his part and has promised to appeal, a process that could take months or even years.
In the meantime, here’s what we know about how much President Trump owes, whether he’ll have to pay it back, and what’s going to happen next.
How much debt does President Trump currently have?
The civil fraud verdict requires President Trump to pay interest on a portion of the trading profits he was ordered to forfeit. New York Attorney General Letitia James, who filed the lawsuit, said interest payments totaled $99 million and “will continue to increase daily until paid.”
Between Friday’s ruling and the two decisions in Carroll’s case, Mr. Trump will face a legal judgment of about $542 million.
Trump must pay an additional $110,000 for failing to respond to a subpoena in a civil fraud case and $15,000 for violating a gag order and repeatedly disrespecting a judge’s law clerk. As part of Friday’s ruling, the judge also ordered Trump’s two sons to pay $4 million each.
This is not the end of President Trump’s court-ordered debt. Last month, he was ordered to pay nearly $400,000 in legal fees to the New York Times after losing a lawsuit against the newspaper. He is currently appealing a $938,000 judgment against him and his lawyers for filing what a judge called a “frivolous” lawsuit against Hillary Clinton. .
Will he be able to get any of these sentences reduced?
It is not uncommon for the size of a judgment, especially a large one, to be reduced on appeal.
Trump’s civil fraud appeal will first be heard in an intermediate court. If an unfavorable ruling is returned, President Trump could seek to take the case to New York’s highest appellate court, but legal experts say that is unlikely.
How quickly must President Trump pay?
Mr. Trump has already deposited the $5 million owed to Mr. Carroll in the original defamation suit, plus an additional $500,000 in interest required by New York state law, into a court-controlled account. Carroll will not be able to access the funds until the appeal process is completed.
He may soon be forced to do the same with the $83.3 million judgment in the second Carroll verdict. Alternatively, you could secure a bond and pay only a portion upfront, but that option would likely incur interest and fees and require some form of collateral. Mr. Trump will have to find a financial institution to provide the funds.
In the civil fraud case, the court will decide how much compensation Trump must pay when he appeals. And Will Thomas, a law professor at the University of Michigan, said he could be required to pay the full amount immediately after the appeals court’s ruling, which could come as early as this summer.
“New York’s judicial system has shown a willingness to act quickly on some of Mr. Trump’s issues,” Thomas said. “If you listen to what we’re hearing from the First Court of Appeals, that’s almost certainly the point where money is exchanged.”
Can President Trump afford to pay?
Trump claims he is worth more than $10 billion. Most estimates, including an evaluation by the New York State Attorney General, put the number closer to $2 billion.
In his 2021 financial statement, President Trump said he had just under $300 million in “cash and cash equivalents.” Since then, he has made a number of sales, including a golf course in New York and a hotel in Washington, D.C., and could soon see a windfall if his social media company, Truth Social, goes public. I don’t know.
But even with these sources of income, it’s unclear whether Trump and his family will have enough cash on hand to pay all their current debts.
Could he pay with campaign funds or PAC money?
Federal election law prohibits the personal use of campaign funds. But the rules for outsourcing a candidate’s expenses to a political action committee (PAC) are more vague.
Over the past two years, Trump’s Save America political action committee, presidential campaign and other fundraising groups have spent $76.7 million on legal fees. Campaign finance experts predict that Mr. Trump will try to use PAC money to somehow cover the costs of his decision.
“The odds of the Federal Election Commission pursuing these violations under its current structure are not very high,” said Daniel Weiner, director of elections and government programs at the Brennan Center.
Can he or his company declare bankruptcy?
The judge’s ruling Friday means that even if the Trump Organization declares bankruptcy, Mr. Trump will still be liable for the payments. If Trump were to declare bankruptcy himself, enforcement of the judgment against him would be suspended. But political commentators say such drastic measures are unlikely.
Despite the fact that several of the companies he has run have gone bankrupt, President Trump has repeatedly boasted that he has never personally declared bankruptcy.
What if President Trump simply refuses to pay?
Legally, President Trump would face the same consequences as Americans who refuse to pay legal judgments, including possible asset seizure and wage garnishment.
“The president is not the king, and just because he happens to be president doesn’t make his assets sacrosanct,” Weiner said.
On Friday, the judge overseeing Trump’s civil fraud case appointed an additional monitor to oversee the Trump Organization’s finances, ruling that the organization cannot be trusted to comply with the law. If Trump refuses to hand over the payments, courts will have additional discretion to go after him and his companies.
“They have tremendous power, especially for someone like Mr. Trump who has physical assets in the state,” said Thomas, the law professor. “The court might say freeze your bank account. Or worse, it might say, ‘We’re going to seize Trump Tower and put it up for sale.'”
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