Former President Donald Trump finds himself navigating through what legal experts are calling the most significant financial challenge of his life, triggered by hefty lawsuit judgments against him, according to a report by TheHill.
According to Stephen Gillers, a law professor at New York University, Trump’s recent setbacks, including the $355 million fine imposed by a New York judge on February 16 in his civil fraud trial and the $83.3 million defamation case ruling against him on January 26, have left him in a dire financial predicament.
Gillers emphasized that Trump lacks the liquid funds to settle the substantial sums involved.
In an exclusive interview with Newsweek, Gillers remarked, “I think it’s fair to say that Trump is facing a financial crisis greater than he ever has faced, and now his father is not around to bail him out, not that his father had the funds, either.”
Gillers outlined Trump’s limited options, stating, “I doubt he has the amounts in cash. He’ll either have to sell something or get bonds from a surety, for which he’ll have to put up collateral worth more than the amount of the bond.”
Echoing Gillers’ assessment, Massachusetts-based attorney Anne Stevenson emphasized that Trump’s liquidity constraints pose a significant hurdle.
Stevenson highlighted the complications arising from Judge Arthur Engoron’s September ruling, which ordered key Trump companies into receivership pending appeal.
“I don’t think Trump has that kind of liquidity and may have to sell property,” Stevenson told Newsweek. “However, if Trump loses his appeal on the receivership, he will not be able to sell Trump Tower or other major assets.”
The legal battles facing Trump extend beyond financial penalties. New York Attorney General Letitia James initiated legal action against Trump, his adult sons, and key executives in September 2022, alleging asset inflation to secure favorable business loans.
Following a trial late last year, Engoron ruled on Friday that Trump must pay approximately $355 million in penalties.
Furthermore, Trump, along with key associates, will face restrictions from holding corporate positions within New York for several years.
The financial strain on Trump further intensified with the defamation case brought by E. Jean Carroll. On January 26, Trump was ordered to pay Carroll $83.3 million for defamatory remarks made in response to her accusations of sexual assault.
Trump, who had previously denied any wrongdoing, expressed intent to appeal the ruling.
Despite the mounting legal challenges and financial constraints, Trump remains steadfast in his stance, maintaining his innocence and attributing the lawsuits to political motivations.
