Donald Trump's financial and legal troubles are mounting, casting a long shadow over his business empire and potentially his political future.
Recently, the former president has been hit with staggering financial judgments totaling $445 million for business fraud, along with roughly $100 million in interest and nearly $77 million in legal fees. A source close to the matter commented (via Globe magazine), "This could be the end of Donald Trump's business empire. It's a day of reckoning long delayed, but it seems to have arrived in spades."
The most significant blow came from New York Justice Arthur Engoron, who imposed a $355 million fine on Trump, with an additional $98.6 million in interest. This penalty stems from accusations of fraudulently inflating the value of his business properties. Engoron's ruling also restricts Trump and his sons, Don Jr. and Eric, from holding any roles within the Trump Organization, putting the company under the management of U.S. District Court Judge Barbara Jones as an independent monitor.
Engoron stated, "The frauds found here leap off the page and shock the conscience," highlighting the gravity of the misconduct. This comes on the heels of Trump being ordered to pay $83.3 million to writer E. Jean Carroll for defamation, among other financial obligations from various legal battles.
The implications of these financial woes extend beyond Trump's business dealings. The insider revealed, "The Jan. 6 lawsuits could amount to billions because he's being sued by congressmen and cops injured when the MAGA mob stormed the Capitol Building at his instigation." Trump's ability to cover these debts is in question, with speculation that he may need to liquidate assets to meet his financial obligations.
John Dean, former White House counsel under Richard Nixon, warned, "The attorney general will seize the properties and liquidate them at fire sale prices." This leaves Trump with limited options, particularly since Engoron's ruling has diminished his borrowing power, as reported by Newsweek.
"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," the insider suggested.
Legal expert Richard Pildes noted that Trump cannot use his campaign funds to settle these judgments. In a bid to raise funds, Trump supporters have started a GoFundMe page which has rasied more than $1.3 million at the time of publishing, Business Times has learned. Meanwhile, Trump himself has been selling merchandise, including Never Surrender high-tops priced at $399.
These financial challenges not only threaten Trump's business but also his political persona, which is built on the notion of being a successful outsider capable of reforming Washington. An insider pointed out, "But what happens when that image is eviscerated and replaced with proven accusations of fraud? That might not shake his base, but it could impact undecided voters."
Amid this turmoil, Melania Trump, the former First Lady, might reconsider her position, especially after renegotiating her prenuptial agreement in May 2023 for increased financial benefits. With Barron Trump nearing adulthood, Melania's reasons for staying with Donald, primarily financial, may no longer hold, leading her to contemplate her future without the Trump fortune.
