Why Trump’s 'massive financial headaches' will only get worse: legal expert
Former President Donald Trump was dealt a major financial blow on Friday, February 16 when Justice Arthur Engoron ordered him to pay almost $355 million in New York State Attorney General Letitia James' civil fraud lawsuit. When interest is factored in, that figure increases to $450 million.
Engoron's ruling comes after the damages juries imposed on Trump in former Elle Magazine columnist E. Jean Carroll's civil defamation lawsuits: $5 million in the first one, $83.3 million in the second.
In an op-ed published by MSNBC's website, veteran legal expert Michael Conway lays out some reasons why the "massive financial headaches" Trump is facing after Engoron's verdict "are just beginning."
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Conway, who served as counsel for the House Judiciary Committee during its impeachment inquiry against President Richard Nixon in 1974, explains, "Before he can appeal the verdict, Trump will have to post a bond or pledge assets equal to the verdict plus 9 percent post-judgment interest. This assures that if Trump loses the appeal, the State of New York will collect the money."
Conway elaborates, "A business litigation observer previously told NBC News that Trump would have to pay a nonrefundable fee of around $18 million to obtain a bond for a $370 million judgment, so slightly more than the actual judgment. Any company putting up the bond will demand collateral. If Trump needs to pledge any New York properties or assets to the bonding company to secure the appeal bond, an independent monitor appointed by Judge Arthur Engoron would have to be notified by Trump in advance."
Between the $450 million figure and the damages in Carroll's two defamation lawsuits, Trump is looking at paying more than $535 million.
On top of those financial problems, Conway notes, Trump is facing a civil lawsuit related to the January 6, 2021 attack on the U.S. Capitol Building.
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"No matter how rich Trump may be," Conway stresses, "legal liabilities approaching half a billion dollars constitute a financial disaster. Trump's go-to plan has been to raise money from his supporters to pay his burgeoning legal fee obligations. Indeed, he has spent almost $50 million of campaign funds on lawyers' bills in the past year."
Conway adds, "But while Trump has already appealed to his followers for more money following this most recent verdict, it seems unlikely that he will be able to fundraise his way out of trouble this time."
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Read Michael Conway's full MSNBC op-ed at this link.
