Donald Trump's net worth is at risk of taking a catastrophic hit, a former federal prosecutor said.
Michael McAuliffe, who also is a former elected state attorney, said that the $250 million civil fraud suit being brought against Trump, his two eldest sons and the Trump Organization is posing a significant threat to the former president's net worth and it's likely Trump knows it.
"The case has the increasingly likely consequence of dismantling the Trump family businesses in New York. That would be catastrophic to Donald Trump's net worth, whatever it is," McAuliffe told Newsweek. "That may be why he showed up at trial and is attacking the participants with sustained verbal tantrums."
In a rare court appearance, Trump attended the first three days of his civil trial in Manhattan this week. Ahead of the fourth day, Judge Arthur Engoron, who is presiding over the trial and who has already found Trump liable of fraud, issued a ruling that will block the former president and 2024 candidate, his sons and company executives from secretly transferring or protecting their assets.
McAuliffe said the penalties and consequences of the trial could be foundational to Trump's net worth because it is so deeply intertwined with his ability to promote confidence in his assets.
"A key component of Trump's 'net worth' is his ability to convince others of the value of his brand and his properties. The civil suit takes aim at that very issue," McAuliffe said. "It's like a balloon popping. Once the air starts escaping, it's hard to stop."
Speaking to reporters outside the courthouse on Wednesday, Trump said: "Nobody's supposed to know my net worth, but now everybody is and will—and I hope you're impressed." He also said that the financial documents he submitted in the past are "much less" than his actual net worth.
"It can't be fraud because I gave them lower numbers," he said.
The Trumps have been accused by New York Attorney General Letitia James' office of inflating their assets in an effort to commit insurance fraud. James alleged that Trump, in particular, inflated his net worth by as much as $3.6 billion during three years between 2011 and 2021. Trump has denied all wrongdoing and painted the case as a politically motivated stunt.
Trump this week claimed that Engoron "has been given false and grossly misleading information about my net worth" by James' office.
Forbes magazine dropped Trump from its annual ranking of the wealthiest Americans on Tuesday. While he made the 2022 Forbes 400, the publication estimated that his net worth had fallen from $3.2 billion to $2.6 billion this year, leaving him $300 million short of making the list. Forbes cited Truth Social, Trump's social media platform, as well as a decline in his real estate assets as reasons for the drop.
