Trump's legal debt growing by £70,000 a day as interest spirals out of control
After being fined hundreds of millions of dollars in a New York civil fraud case, former President Donald Trump's legal debts continue to grow as he pays almost $100,000 a day in interest.
Justice Arthur Engoron ruled on Friday that the Republican frontrunner for the 2024 election and his companies need to pay $355 million (£281.4m) in penalties for what he described as a scheme to deceive banks and insurers by inflating Trump's wealth on his annual financial statements. Along with the financial penalties, Trump's business is also under outside supervision and subject to limits on borrowing, as well as the controversial Republican being banned from serving as an officer or director in any New York corporation for three years.
In total, Trump owes $537,019,274 (£426,670,000) in court orders and interest, as of Sunday, February 18, with $87,502 (£70,000) of interest added in just one day. It comes as Trump faces four criminal trials across the country along with a whole host of civil trials all while fighting for the Republican presidential nomination.
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Trump was fined more than $350million in the New York civil fraud trial (AFP via Getty Images)Trump and his adult sons, Donald Jr and Eric, who were co-defendants in the case, denied any wrongdoing in the case and painted the case brought by Democratic New York Attorney General Letitia James as politically motivated. Following the ruling, Trump spoke at his Mar-a-Lago club in Florida, declaring the ruling "election interference".
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Judge Engoron's ruling requires Trump to pay interest on some of the deal profits he has been ordered to give up. Attorney General James said the interest payments totalled $99 million (£78.5m) and would "continue to increase every single day until it is paid."
The latest ruling and financial penalty came just weeks after Trump was ordered to pay columnist E Jean Carroll $83.3 million (£66m) in recompense for damages to her reputation after she accused him of sexually assaulting him in a luxury department store. Last year, a separate jury awarded Ms Carroll $5 million (£3.96m) from Trump for sexual abuse and defamation.
How much does Trump owe?
Combining Friday's ruling with the two judgements in Ms Carroll's case, Trump owes around $542 million (£429m) in legal judgements. On top of this, he owes another $110,000 (£87,000) for refusing to comply with a subpoena in the civil fraud case and $15,000 for repeatedly disparaging the judge's clerk in violation of a gag order. But the legal fees don't end there.
Last month, Trump was ordered to pay almost $400,000 (£317,000) in legal fees to The New York Times after he unsuccessfully sued the newspaper. He is currently appealing a judgment of $938,000 (£743,000) against him and his attorney for filing what a judge described as a "frivolous" lawsuit against Hilary Clinton.
Trump is currently facing four criminal trials and a whole host of civil lawsuits (AFP via Getty Images)Some of his judgements, particularly those of the highest value, could be reduced on appeals. Trump has already said he would appeal the civil fraud trial ruling from Judge Engoron, with any such appeal going first before an intermediate-level court. If that court then returns an unfavourable ruling, Trump could try and have the case taken by New York's top appellate court, though legal experts have said this is unlikely.
Trump has already deposited the initial $5 million (£3.96m) owed to Ms Carroll for the first defamation case into a court-controlled account, along with the $500,000 (£396,000) in interest required by New York law, but she will not have access to the funds until the appeals process has played out. The outspoken politician could soon be forced to do the same for the $83.3 million judgment in the second verdict.
Trump has been banned from running businesses in New York state for three years as part of the civil fraud trial ruling (AFP via Getty Images)He could alternatively secure a bond and pay only a portion up front - though that option would come with interest and fees and likely require some form of collateral. To do this, Trump would have to find a financial institution willing to front him the money.
When it comes to the civil fraud case, how much Trump must put up will be up to the courts as he mounts his appeal. He could also be required to pay the full sum immediately after the appellate court rules, which could come as soon as this summer, according to Will Thomas, a law professor at the University of Michigan.
"New York's judicial system has shown a willingness to move quickly on some of these Trump issues," he explained "When we hear from the first appellate court, that's a point where money is almost certainly going to change hands."
Can Trump afford to pay it all?
When it comes to paying off the total amount, Trump has previously claimed to be worth more than $10 billion (£7.9 bn). But most estimates, including an assessment by the New York attorney general, have that figure closer to $2 billion (£1.58 bn).
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As part of the New York civil fraud trial ruling, the Trump Organization will be monitored by outside sources (AFP via Getty Images)In his 2021 statement of financial condition, Trump claimed to have just under $300 million (£2376,800) in "cash and cash equivalents". Since then, he has made a number of sales including his New York golf course and his hotel in Washington DC, and may also soon receive a windfall when Truth Social, his social media company, goes public.
Even with those income streams, it's unclear whether Trump and his family members have enough cash on hand to pay all the money they now owe. If Trump were to simply refuse to pay what he owes, he would face the same consequences as any other American citizen refusing to pay a legal judgment, including the possibility of having his assets seized and wages garnished.
"The president is not a king and the president's assets are not sacrosanct just because he happened to be the president," explained Daniel Weiner, director of the Brennan Center's Election and Government Program. One of Justice Engoron's rulings was the appointment of an additional monitor to oversee the Trump Organization's finances after he found they could not be trusted to follow the law.
If Trump were to refuse to hand over payments, the courts would have additional discretion to go after Trump and his businesses. Professor Thomas explained: "They have a huge amount of power, particularly for someone like Trump who has physical assets inside the state.
"The court might say we're going to freeze your bank account. Or even worse, they could say, 'We're seizing Trump Tower and we're putting it up for sale'."
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