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Trump May Have To Dump His Properties At ‘Fire Sale’ Prices If He Loses NY Fraud Suit

Now that he’s facing massive financial penalties as the result of the civil lawsuit filed against him this week by New York Attorney General Letitia James, failed, one-term, twice-impeached former president Donald Trump is facing massive financial penalties for inflating the value of his properties.

Trump, who is known to be cash-poor, will likely have to start selling some of his skyscrapers, according to Tim O’Brien, a Trump biographer and senior executive editor of Bloomberg Opinion.

O’Brien was a guest on MSNBC Sunday, and was asked by host Alex Witt:

“You say that James’ suit won’t land the Trumps in prison, only criminal convictions could do that. It seeks to bar the Trumps from running a business in New York state and might unravel the Trump organization. You just heard [former Trump lawyer] Michael Cohen say it could actually wipe Trump out. Is that the way you see it?”

O’Brien replied:

“Well, I think it depends on the extent of damage that the case inflicts and her prosecution inflicts on the Trump family and their businesses. Michael is completely right that he has never had a lot of cash on hand, he’s almost a debt addict, he has always heavily mortgaged the properties he owns.”

He continued:

“Most of his wealth is tied up in a handful of skyscrapers in New York City. Tish James is seeking to bar him from doing business in the state of New York, so he’ll have to unload those if he gets convicted. And that is a fire sale, which means everyone who’s a buyer will know they won’t have to pay top dollar because he needs to get out of the property.”

The Trump biographer concluded that the civil suit is an existential threat to the ex-president:

“She has made to two criminal referrals out of this case, one to the IRS and one to the US Attorneys’ office in the Southern District [of New York]. So that is now hanging over his head. I think the family’s legacy is in New York, everything that Donald Trump stands on was built by Trump in New York. Trump has put those holdings in peril twice, the first time in the early 90’s when he gorged on debt and couldn’t repay the banks and again now when he has gotten on the wrong side of the law.

“I think this is an existential threat to his business and his financial well-being.”

By Andrew Bradford

Proud progressive journalist and political adviser living behind enemy lines in Red America.

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