Former President Donald Trump is facing serious financial difficulties, with recent court rulings and fraud investigations leaving him scrambling to pay hundreds of millions in debts and penalties. Trump’s mythical billionaire status has been exposed as a sham, revealing a man desperately trying to keep his empire afloat through lies and empty boasts.
Over $900 Million in Debts and Penalties
Trump currently owes over $900 million as a result of two recent major legal judgments against him.
In November 2022, New York Attorney General Letitia James won a civil fraud lawsuit against Trump, with the court ordering him to pay $250 million in penalties. This was after Judge Arthur F. Engoron ruled that Trump had deliberately inflated his net worth on financial statements submitted to lenders.
Then in December, Trump was ordered to pay $83 million in damages to writer E. Jean Carroll, who accused him of sexual assault. Trump had publicly called Carroll a liar, leading to a defamation suit that the jury ruled in Carroll’s favor.
With interest, Trump’s total debts from just these two cases comes to over $450 million to New York State and $83 million to Carroll.
Desperate Attempts to Avoid Payments
Trump has desperately tried to avoid paying what he owes, first trying to delay the penalties and then attempting to lowball the amounts.
After the $250 million fraud penalty, Trump’s lawyers tried to pause the payments while they appealed the ruling. They claimed Trump might need to sell properties if forced to pay the full amount right away.
The appeals court rejected Trump’s request for a reduced bond of only $100 million. They demanded Trump pay the full $450 million, marking the first time he has ever been held fully accountable for his actions.
This comes after Trump has delayed and appealed legal judgments against him for years, never paying a cent of penalties from his numerous lawsuits. His tactics of deny, delay and deflect may have finally failed him.
Where is Trump’s Fortune?
Trump portrayed himself as a multi-billionaire on the campaign trail and throughout his presidency. He used his supposed wealth as evidence of his business acumen, often claiming to be worth over $10 billion.
But that myth has now been shattered, as Trump has scrambled unsuccessfully to find someone to cover his debts. Someone with billions in assets and cash should have no problem posting a $450 million bond.
In reality, Trump’s properties are underwater, hemorrhaging money and overvalued on paper. The Trump Organization is a hollow shell, with little liquidity. Forbes now estimates Trump’s net worth at just $700 million if all assets are sold.
Trump’s lavish lifestyle has always been supported by copious debt and moving money between struggling properties. With his income streams drying up, the former president is experiencing a harsh reality check.
Other Legal and Financial Troubles Mounting
The New York penalties may be just the beginning of Trump’s financial reckoning. Prosecutors and lawmakers are moving in as his legal troubles pile up.
In Georgia, the Fulton County District Attorney is investigating Trump’s attempts to overturn the 2020 election results. Trump infamously called state officials asking them to “find” enough votes for him to win Georgia.
Then there is the ongoing Department of Justice investigation into the January 6th Capitol attack. The DOJ is said to be focused on Trump’s involvement in planning and inciting the riot.
On top of that, the Republican National Committee is suffering from poor fundraising under Trump’s leadership. Filings show the RNC had just $8.7 million cash on hand at the end of 2022, compared to over $70 million for the Democratic National Committee.
Final Decline of the Trump Myth?
For years, Trump succeeded in creating a mythos around himself as a tremendously successful titan of business. He used convenient lies, exaggerations and projections of wealth to con the public and build his persona.
But that facade may finally be crumbling for good under the weight of legal judgments and scrutiny of his finances. The former president is no billionaire tycoon, but a huckster who pushed his hollow empire to the brink through decades of risky gambles, shifty maneuvers and extensions of credit.
Some Trump loyalists cling to hopes he can regain the presidency in 2024. But as his legal and money woes stack up, the former president seems more destined for financial ruin than a political comeback.
For Trump critics, his current desperation and humiliation come as a long-awaited moment of reckoning. After years of boasts and falsehoods, the Trump myth has been debunked. The supposed great dealmaker looks headed for his greatest loss yet, one that his lies cannot cover up.
