Michael Cohen, a former personal attorney for Donald Trump, predicted Tuesday on CNN’s “The Source” that the former president will likely be bankrupted by the damages awarded in New York Attorney General Letitia James’ civil suit after the judge found Trump is liable for fraud.
Judge Arthur Engoron found, “The former president and his company deceived banks, insurers, and others by massively overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing financing.”
Anchor Kaitlan Collins said, “This is still going to trial. This is the judge saying the core of this investigation, it can stand. If he goes to trial and there is a judgment for $250 million, can he pay that or is he going to bankruptcy?”
Cohen said, “Let me say there is a lot of mistakes that have been made by people in the media when they say this is $250 million lawsuit against Trump and the organization. It is not. It is a baseline of $250 million. It could go anywhere up to whatever the judge determines.”
He continued, “Judge Engoron will be the sole decider on what the damages are. The damages, in my estimation, will exceed, with interest and penalty, will exceed $600 million. Does that put the company into bankruptcy? He does not have that liquid cash available in order to pay that off for a multitude of reasons. Many of the assets that he owns, he has limited to no basis in them. Like 40 Wall Street has a $1 million basis. He has $100 million mortgage into it.”
Collins said, “You are saying he cannot pay that.”
Cohen said, “No, because he will also have to pay Uncle Sam tax on the money.”
Follow Pam Key on Twitter @pamkeyNEN
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