A New York jury ordered former President Donald J. Trump to pay E. Jean Carroll $83.3 million for ruining her credibility as an advice columnist through a barrage of demeaning comments about her—as many as 40 on one recent day.
But will he ever have to pay?
What Are Trump’s Options for Paying the Carroll Verdict?
Trump called the verdict “absolutely ridiculous” and vowed to appeal. That process could take months if not longer. As he awaits the appellate court ruling, Trump is not required to write Carroll a check. But he is on the hook to pay something. Otherwise, Carroll can begin executing on her $83.3 million judgment, which begins earning interest under federal law at the same rate as the weekly average on the one-year constant maturity Treasury yield published by the Federal Reserve, which is roughly 5 percent.
One option is for Trump to pay the full $83.3 million to the court. The court will hold the funds while the appeal is pending. Trump did this last year when a jury ordered him to pay Carroll $5.5 million in a separate instance of defamation.
Another option is for Trump to secure a bond. A bond would save him from having to pay the full amount upfront. But first, Trump would have to find a financial institution ready to write an $83.3 million bond for him despite his significant legal baggage. And it would come at a price—a 4 to 5 percent fee for the underwriter, plus the guarantor will require collateral to secure their interest.
Can Trump Afford to Pay the $83.3 Million E. Jean Carroll Verdict?
Trump has the cash on hand to do so. According to a video deposition excerpt played for the jury by Carroll’s attorney, Roberta Kaplan, Trump estimated his brand was worth “maybe $10 billion” and real estate properties valued at $14 billion. Kaplan used this evidence to convince jurors that Trump could afford significant punitive damages.
But much of his wealth is tied up in the value of his properties, and he’s not keen on parting with large sums of money at once. For many of his legal expenses related to his criminal indictments and civil trials, Trump has tried to avoid spending his own money, choosing instead to dip into his political action committee’s funds to cover his legal fees and other expenses. But there’s not enough money in his political accounts to cover a verdict that size. So, Trump will have to dig into his own pockets.
And he can. According to Dan Alexander, a Forbes editor who has written extensively on Trump’s finances, Trump has about $400 million in liquid assets. “So, sure, $83 million will hurt, but yeah, he could pay it,” he told CNN.
But what if the multimillion-dollar verdicts keep coming? They likely will.
New York AG Seeks $370 Million Penalty from Trump
A Manhattan court is set to announce its ruling soon in a heated three-month civil fraud trial brought by New York Attorney General Letitia James against Trump, The Trump Organization, and top officials at the business. The lawsuit accused the parties of “knowingly and intentionally” creating over 200 overly inflated evaluations between 2011 and 2021 that helped the company secure favorable loans from banks and insurance companies. James is seeking a $370 million judgment and is on course to win.
If hit with a verdict that size on top of the $83.3 Carroll verdict, Trump would face the same options for paying—post $370 million with the court to guarantee payment of the judgment or secure an appellate bond.
The surety company posting that bond will require Trump to provide audited financial statements before it issues a guarantee and probably needs a blanket assignment of his assets, some of which have no doubt been pledged to secure loans and mortgages.
Now that we’re talking about real money, Trump’s finances will face exquisite scrutiny, and who knows where that might lead.
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