Donald Trump is pursuing a legal strategy to eliminate his most substantial financial burden — a staggering nearly $500 million fraud judgment that is accruing interest at an alarming rate of approximately $100,000 each day. Trump’s legal team will present arguments in a New York appellate court, seeking to overturn a significant verdict issued in February, which they claim was filed beyond the statute of limitations and violates constitutional protections against excessive fines.
This legal battle is unfolding just weeks ahead of the upcoming Election Day. Trump’s financial status has seen wild fluctuations recently, largely influenced by the performance of Trump Media & Technology Group Corp., his social media venture. Earlier this year, his stake in the company boosted his wealth by billions, propelling him back onto the Bloomberg Billionaires Index after it first went public in March. However, following a dramatic decline in stock value — with prices plummeting by 80% from their peak in late March — his fortune has sharply decreased, with his net worth now estimated at around $4.1 billion.
If the appellate court rules against Trump, he has the option to escalate the case to New York’s highest court or even the U.S. Supreme Court, but this could prolong the resolution until 2026. During the legal proceedings, Trump’s total liability has swelled to nearly $477 million, inclusive of approximately $23 million in interest accrued as of now due to ongoing appeals. In his financial disclosures submitted to the U.S. Office of Government Ethics, this fraud verdict is featured prominently, dwarfing his other major debts, including a $160 million mortgage from Ladder Capital Finance for his 40 Wall Street property and various Axos Bank mortgages totaling $225 million linked to Trump Tower and Trump National Doral.
The fraud ruling arose from a civil case filed by New York’s attorney general after extensive findings revealed that Trump had inflated his wealth on financial documents over several years to secure better loan conditions. In response to these findings, Trump, who is 78 years old, has firmly denied any wrongdoing. His campaign spokesperson emphasized their confidence in achieving a dismissal of the verdict, labeling it as unconstitutional.
This impending legal showdown has focused public attention on Trump’s unpredictable financial landscape. Earlier this year, the rallying share price of Trump Media caused his wealth to soar, peaking at $8.8 billion and ranking him as the 293rd richest individual globally. However, much of that surge remained theoretical until the lock-up period on his shares concluded recently. As of now, his Trump Media shares are valued at approximately $1.6 billion, and despite his assurances not to sell them immediately, experts warn of significant trading risks.
Trump’s financial challenges are compounded by other liabilities, including an $83.3 million judgment stemming from a defamation case involving writer E. Jean Carroll, along with an additional $5 million verdict in a related lawsuit. Collectively, his legal debts may approach $600 million.
According to the recent financial filing, Trump has reported over $513 million in income from his various U.S. properties, such as Mar-a-Lago and his Bedminster club, alongside substantial earnings from licensing agreements and merchandise. He has also mentioned potential revenue generation from initiatives like collectible silver coins and a crypto project targeted at traditional financial systems.
As this high-stakes legal saga unfolds and with income sources being explored, the complexity of Trump’s situation raises questions about how he could manage to settle such sizeable judgments, should the appeal not yield favor. Trump’s legal team will argue that banks profited from their dealings with him and thus, lack any claims of loss. They also assert that he always made timely payments and fulfilled his loan obligations completely — conditions which they believe support their case for dismissal.
As the November election approaches, the implications of this case not only affect Trump’s financial standing but could also reverberate through the political landscape.