Donald Trump's once towering business empire is now teetering on the brink of collapse, engulfed by a deluge of financial judgments, legal fees, and the potential fallout from his involvement in the January 6 Capitol riot. The former president is facing a staggering sum of $445 million in civil judgments for business fraud, coupled with an estimated $100 million in interest and nearly $77 million in legal expenses. A Beltway insider ominously declared, "This could very well spell the end for Donald Trump's business endeavors. The long-delayed day of reckoning seems to have finally dawned."
The financial onslaught was compounded when New York Justice Arthur Engoron levied a monumental $355 million fine against Trump, with an additional $98.6 million in interest, for fraudulent practices within the Trump Organization. Engoron's scathing rebuke, "The frauds found here leap off the page and shock the conscience," underscored the egregious nature of the offenses. This judicial action has not only financially crippled Trump but also restricted his operational involvement in his own company, effectively sidelining him and his sons from their corporate roles.
Amidst this financial maelstrom, Trump also finds himself indebted to writer E. Jean Carroll to the tune of $83.3 million for defamation, adding to the growing list of his financial liabilities. The cumulative effect of these judgments, fines, and legal entanglements poses a significant threat to Trump's liquidity and his ability to navigate these troubled waters.
The potential repercussions of the January 6 lawsuits loom large, with insiders suggesting that the damages from these cases could ascend to billions, further exacerbating Trump's financial woes. The urgency to settle the fines imposed by Engoron and Carroll's defamation award adds a ticking clock to Trump's predicament, with a looming deadline that necessitates swift financial action.
Speculation abounds that Trump may be forced to liquidate assets to meet his obligations, despite assertions from his legal team about his ample liquidity. John Dean, former White House counsel under Richard Nixon, cautioned, "The attorney general might seize and liquidate Trump's properties at significantly reduced prices," further complicating Trump's path to financial recovery.
The insider claimed, "Even if the Trump Organization declared bankruptcy, he'd still be on the hook for the rulings. The only way for him to escape might be to declare personal bankruptcy, which is something he's never done despite bankrupting six companies during his business career."
As Trump grapples with these challenges, his political persona, built on the premise of being a successful businessman capable of reforming Washington, is at risk of being irrevocably tarnished. The proven accusations of fraud threaten to undermine his image and sway undecided voters, potentially impacting his political future.
Moreover, the financial turmoil has personal implications for Trump's family life, particularly concerning former First Lady Melania Trump. Following the renegotiation of her prenuptial agreement, which reportedly increased her financial benefits, insiders suggest that Melania might reassess her situation. With their son Barron nearing adulthood, Melania's financial motivations for remaining in the marriage could diminish, prompting her to contemplate her future independently of the Trump financial empire.
The Globe magazine spoke with the insider.