Former President Donald Trump is staring down two significant legal verdicts in New York that could potentially deplete his cash reserves. This comes as a potential setback for the presidential hopeful, whose brand is intertwined with his financial prosperity.
What Happened: A jury has ordered Trump to pay $83.3 million to writer E. Jean Carroll for defaming her in 2019, reported Bloomberg on Friday. Additionally, a verdict is expected this week in a civil fraud trial seeking the return of $370 million in “illegal profits” Trump allegedly made by lying to banks about his financial status.
The possibility of facing damage awards exceeding $450 million within a week highlights the potential for a financial challenge.
In a deposition last year, Trump claimed his cash reserves were “substantially in excess” of $400 million. The Bloomberg Billionaires Index estimates his liquid assets at around $600 million. These legal verdicts could potentially wipe out a substantial portion of Trump’s cash assets.
See Also: Trump Dominates Over Biden In New Poll, But One Statistic Should Rattle Both Camps
The timing of these legal challenges is unfortunate for Trump, who is the anticipated Republican nominee for the November presidential election. He already faces escalating legal expenses after being charged with 91 criminal offenses in four criminal prosecutions.
Alina Habba, Trump’s lawyer, has described the financial penalties as “clearly all by design and the epitome of selective prosecution against the clear Republican nominee.”
Despite the potential financial setbacks, Trump’s campaign finances remain robust, though they cannot be used to finance these verdicts.
Why It Matters: The potential financial crisis for Trump comes amid a series of legal and financial challenges. A recent report has raised allegations of tax evasion linked to Trump’s business dealings, pointing to potential financial misconduct within his organization. This report, revealed by Barbara Jones, a former judge and the current special monitor of the case, identified several irregularities in the financial documents provided by The Trump Organization.
Trump’s financial troubles are further compounded by the potential loss of his cash reserves. This could have a significant impact on his ability to fund his legal battles and maintain his public image as a successful businessman. The outcome of these legal verdicts could also have far-reaching implications for Trump’s political future.
Trump’s legal troubles have also become a central focus of his fundraising efforts. He has raised millions of dollars from supporters, some of which he has used to pay for his legal bills. However, he may face restrictions on using campaign funds to cover personal expenses like damages, according to former federal prosecutor Jennifer Rodgers.
Despite his financial challenges, Trump has significant assets that he could potentially tap into, including his real estate empire. However, the potential loss of his cash reserves could still have a substantial impact on his overall financial standing.
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