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Trump's legal debts top a half-billion dollars. Will he have to pay?

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Trump's legal debts top a half-billion dollars. Will he have to pay?

NEW YORK (AP) — Donald Trump’s legal debts might now exceed a half-billion dollars.

A New York judge ordered Trump and his companies Friday to pay $355 million in fines, plus interest, after ruling that he had manipulated his net worth in financial statements.

The stiff penalty comes just weeks after Trump was ordered to pay $83.3 million to the writer E. Jean Carroll for damaging her reputation after she accused him of sexual assault. A separate jury last year awarded Carroll $5 million from Trump for sexual abuse and defamation.

Add interest payments on top of that and the judgments could deal a staggering blow to the personal fortune that remains core to Trump’s political appeal. He has adamantly denied wrongdoing and pledged to appeal, a process that could take months or even years.

In the meantime, here’s what we know about what Trump owes, whether he’ll have to pay up, and what comes next:

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How much money does Trump owe now?

The verdict in the civil fraud trial requires Trump to pay interest on some of the deal profits he has been ordered to give up. New York Attorney General Letitia James, who brought the case, said the interest payments totaled $99 million and would “continue to increase every single day until it is paid.”

Between Friday’s ruling and the two judgments in Carroll’s case, Trump would be on the hook for about $542 million in legal judgments.

Trump owes another $110,000 for refusing to comply with a subpoena in the civil fraud case and $15,000 for repeatedly disparaging the judge’s law clerk in violation of a gag order. As part of Friday’s ruling, the judge also ordered both of Trump’s sons to pay $4 million apiece.

Trump’s court-ordered debts don’t end there. Last month, he was ordered to pay nearly $400,000 in legal fees to The New York Times after suing the newspaper unsuccessfully. He is currently appealing a judgment of $938,000 against him and his attorney for filing what a judge described as a “frivolous” lawsuit against Hillary Clinton.

Can he get any of these judgments reduced?

It’s not uncommon for the size of judgments, particularly high-dollar amounts, to be reduced on appeals.

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The appeal in Trump’s civil fraud case will go before an intermediate-level court first. If it returns an unfavorable ruling, Trump could try to get the case taken up by New York’s top appellate court, though legal experts say that is unlikely.

How quickly does Trump have to pay?

Trump has already deposited $5 million owed to Carroll for the first defamation case into a court-controlled account, along with an additional $500,000 in interest required by New York law. Carroll will not have access to the funds until the appeals process plays out.

He may soon be forced to do the same for the $83.3 million judgment in the second Carroll verdict. Alternatively, he could 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. Trump would have to find a financial institution willing to front him the money.

In the civil fraud case, it will be up to the courts to decide how much Trump must put up as he mounts his appeal. And he may be required to pay the full sum immediately after the appellate court rules, which could come as soon as this summer, according to University of Michigan law professor Will Thomas.

“New York’s judicial system has shown a willingness to move quickly on some of these Trump issues,” Thomas said. “When we hear from the first appellate court, that’s a point where money is almost certainly going to change hands.”

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Can Trump afford to pay?

Trump has claimed he’s worth over $10 billion. Most estimates, including an assessment by the New York attorney general, put that figure closer to $2 billion.

In his 2021 statement of financial condition, Trump said he had just under $300 million in “cash and cash equivalents.” He has since made a number of sales, including his New York golf course and his Washington, D.C., hotel, and may also soon get a windfall when his social media company, Truth Social, goes public.

But 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.

Could he use campaign contributions — or PAC money — to pay?

Federal election law prohibits the use of campaign funds for personal use. But the rules are far murkier when it comes to tapping political action committees — or PACs — for a candidate’s expenses.

Over the last two years, Trump’s Save America political action committee, his presidential campaign and his other fundraising organizations have devoted $76.7 million to legal fees. Campaign finance experts expect Trump will try to spend PAC money to defray the cost of his judgments in some way.

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“The likelihood of the Federal Election Commission in its current configuration pursuing these violations is not terribly great,” said Daniel Weiner, director of the Brennan Center’s Elections and Government Program.

Can he or his businesses declare bankruptcy?

Under the judge’s ruling Friday, Trump would still be liable to pay even if the Trump Organization declares bankruptcy. If Trump personally declared bankruptcy, the enforcement of the judgment against him would be paused. But political commenters say such a drastic step is unlikely.

Despite the fact that several of his previous companies have gone bankrupt, Trump has repeatedly bragged about the fact that he has never, personally, declared bankruptcy.

What if Trump simply refuses to pay the money?

Legally, Trump would face the same consequences as any American refusing to pay a legal judgment, including the possibility of having his assets seized and his wages garnished.

“The president is not a king and the president’s assets are not sacrosanct just because he happened to be the president,” Weiner said.

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On Friday, the judge overseeing Trump’s civil fraud case appointed an additional monitor to oversee the Trump Organization’s finances, finding they could not be trusted to follow the law. In the event that Trump refused to hand over payments, the courts would have additional discretion to go after Trump and his businesses.

“They have a huge amount of power particularly for someone like Trump who has physical assets inside the state,” Thomas, the law professor, said. “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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Investors brace for a bigger backlash from Middle East war

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Investors brace for a bigger backlash from Middle East war
From being just a fringe risk, conflict in the Middle East has become a top worry for investors unsettled by the prospect of a power struggle in Iran and a protracted regional war, with ramifications for everything from global trade to inflation.
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Tel Aviv analyst shelters from 30 missile sirens in 48 hours, says Iran ‘won’t recover’

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Tel Aviv analyst shelters from 30 missile sirens in 48 hours, says Iran ‘won’t recover’

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The past 48 hours in Tel Aviv have been unlike anything seen before, a leading security analyst has said, as sirens blared amid missile threats following Operation Epic Fury and U.S.-Israeli strikes in Iran.

“We are facing a biblical event — nothing less,” Kobi Michael, a senior researcher at the Institute for National Security Studies and the Misgav Institute, told Fox News Digital, speaking from his shelter in the city.

Like many Israelis, Michael said he had spent hours in reinforced rooms during the ongoing barrage, adding that he was “very experienced in this.”

“But this all requires time and determination, and I do hope that Trump will also have them both,” he said, speaking shortly after the president released a video message stating that the military operation would continue “until all of our objectives are achieved.”

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Explosions from projectile interceptions by Israel’s Iron Dome missile defence system over Tel Aviv. (JACK GUEZ / AFP via Getty Images)

“Trump is the only one who can make the change — and that change will impact the entire region and the international order for years to come,” Michael added.

As of Sunday, Tel Aviv remained under a state of emergency following Iranian missile attacks that caused casualties and widespread damage.

According to The Associated Press, Iranian missile and drone strikes have killed approximately 11 Israeli civilians and wounded dozens more in retaliation for the U.S.-Israel strikes on Iran.

Shrapnel from missile impacts damaged at least 40 buildings in Tel Aviv, and authorities reported at least one death in the area from falling debris.

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The Philippine Embassy in Israel confirmed the death of a Filipino national after a missile strike hit Tel Aviv on Saturday.

TOMAHAWKS, B-2 STEALTH BOMBERS AND ATTACK DRONES POUND OVER 1,000 IRANIAN TARGETS IN 24-HOUR BLITZ

People take shelter as Iran launched missiles and drones towards Israel following the US-Israeli attacks. ( Mostafa Alkharouf/Anadolu via Getty Images)

“We enter our shelter once the siren is heard and stay there until the Home Front Command announces that we can leave,” Michael said.

“Usually, it is about 20 to 30 minutes — unless there are further sirens during our stay. Since yesterday morning, it has happened around 30 times.”

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Israel’s President Isaac Herzog also visited an impact site in Tel Aviv Sunday, delivering a message of resilience.

“The people of Israel and the people of Iran can live in peace. The region can live in peace. But what undermines peace time and again is terror instigated by this Iranian regime,” Herzog said.

EXILED IRANIAN CROWN PRINCE SAYS US STRIKES MARK ‘BEGINNING OF THE VERY END’ FOR REGIME

Israeli emergency service officer walks past building debris at the scene of a Iranian missile attack. (Ahmad GHARABLI / AFP via Getty Images)

Following the reported killing of Iran’s Supreme Leader Ayatollah Ali Khamenei and roughly 40 senior Iranian officials, Iran formed a provisional leadership council.

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Iran named Ayatollah Alireza Arafi, President Masoud Pezeshkian and Judiciary Chief Gholam-Hossein Mohseni-Eje’i to lead roles.

“The Supreme Leader did not complete the necessary groundwork regarding his own succession,” Michael added.

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“Pezeshkian will face very troubling challenges due to their heavy losses, severe disruptions to control and command systems, and the massive bombing and attacks across Iran, including Tehran,” he said.

“Even if this regime doesn’t collapse, it will never be able to reconstitute itself, recover or return to its previous position,” Michael added.

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Israel FM says Europe too divided, slams Spanish PM

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Israel FM says Europe too divided, slams Spanish PM

Israeli minister Gideon Sa’ar said Europe “does not have unified position” on what role it should play in Iran as European ministers sought to establish a joint approach Sunday.

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As Israel and the United States conducted a joint military strike on Iran, leading to the killing of Supreme Leader Ayatollah Ali Khamenei, Europe was kept on the sidelines.

EU member states did not participate in the operation and, in some cases, they were not informed prior as it is customary among strategic allies.

Asked whether Israel sought to keep Europe on the margins, Sa’ar said internal divisions within EU member states had kept them out of critical exchanges of operational details, unlike the United States, which the minister described as his country’s greatest ally.

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“In Europe, you have all kinds of approaches,” he told Euronews. “You have countries like the Czech Republic which is strongly supporting this operation and then you have Spain, which is standing with all the tyrants of the world.”

On Saturday, Spanish prime minister Pedro Sánchez was among the most critical voices in Europe, suggesting the US-Israeli strikes on Iran risk plunging the region into total war.

“We reject the unilateral military action of the United States and Israel, which represents an escalation and contributes to a more uncertain and hostile international order,” Sánchez said Saturday. The Spanish PM reiterated that message on Sunday.

“We urge for de-escalation and call to respect international law in all conflicts,” Sánchez added. “You can be against a heinous regime, like the Iranian regime, while also rejecting a military intervention that is unjustified, dangerous and outside of international law.”

Sa’aar said Israel considers the operation “fully justified” citing the right to self-defense from a regime that “has called for the destruction of Israel” and lashed at the Spanish prime minister for sending an “anti-Israeli, anti-American message.”

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“Read the statement, they are standing with Iran!” he added.

When asked if any of his European counterparts had manifested an interest in joining the military operation or provide support on the ground, Sa’ar said he held multiple exchanges with European ministers over the weekend and suggested that “if others want to join, they will know have to convey the message.”

On Sunday, Commission President Ursula von der Leyen appeared to back regime change in Iran in line with Israel and the US, saying that the “risk of further escalation is real. This is why a credible transition in Iran is urgently needed” in comments on Sunday.

Sa’ar told Euronews said the strategic strikes and the elimination of Khamenei alongside top regime commanders could “create the conditions to weaken the regime enough to allow the Iranians to take their future into their own hands”.

“The future leadership of Iran should be determined by the Iranian people through free elections. Our only requirement is that whoever comes to power in Iran must not pursue the destruction of Israel,” he said.

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Watch the full interview on Euronews from 8pm CET

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