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Donald Trump could face major political fallout if he settles his New York fraud trial, a prominent attorney has said.
Paul Golden, a partner at New York law firm Coffey Modica, told Newsweek that while Trump settled a case involving Trump University in 2018, "it is possible the public would view a settlement of the current fraud case very differently."
Golden spoke following courtroom speculation that Trump may be willing to settle the case, which he has already partially lost.
The trial stems from a $250-million lawsuit filed in 2022 by New York Attorney General Letitia James, alleging that Trump and top executives at his family company, The Trump Organization, conspired to increase his net worth by billions of dollars on financial statements provided to banks and insurers to make deals and secure loans.
"Settlement is a difficult decision for anyone, especially if they feel they will ultimately be vindicated," Golden said.
"In the event Trump is considering settlement, and thus far we have not seen any evidence of it, he would have a great many issues to consider, including how a potential settlement would affect his brand, his businesses, and real property, and what kinds of fines would be at stake.
"He would also have to consider his chances of success on appeal, and of course we are not privy to what his counsel are telling him about that."
Golden said the case is "unusual in one major respect: most attorneys never have to consider whether a settlement would affect one's client's ability to win the presidency."
He noted that, in 2018, Trump settled a class action suit with students who enrolled at the ill-fated Trump University.
"Therefore, he should have some idea of how the public reacts to a settlement in the context of a case in which the underlying issue was whether he, or his enterprise, had made false claims. But it is possible the public would view a settlement of the current fraud case very differently," Golden said.
Lisa Rubin, an MSNBC legal analyst who is attending the fraud trial, wrote on X, formerly Twitter, on Tuesday: "There are rumblings that the private conversations we've observed between each side and the court reflect some sort of settlement negotiation."
She noted that Trump lawyer, Alina Habba, "is not just outside counsel to Trump in this case" and is also general counsel of his Political Action Committee, Save America, from which the former president has drawn millions of dollars to pay for his legal fees.
"And although others should correct me if I am wrong, I believe she is also conducting fewer witness examinations here than her colleagues, Chris Kise, Jesus Suarez, and Cliff Robert. She just might be the best positioned to negotiate on behalf of Team Trump," Rubin wrote.
Rubin noted Trump's post on the Truth Social platform on Monday, in which he claimed Judge Engoron asked him to "settle for a MUCH LOWER AMOUNT, at a settlement conference, but I said NO, I DID NOTHING WRONG!"
Rubin noted that Trump's post did not specify when the settlement conference occurred. "The only publicly reported settlement conversations date back to September 2022 before the attorney general's office filed its actual lawsuit," she wrote.
Newsweek sought email comment on Tuesday from Trump's attorney.
Trump, frontrunner in the polls for the 2024 Republican presidential nomination, testified on November 6 and has denied any wrongdoing and has called the trial politically motivated.
Eric Trump and Donald Trump Jr., senior executives at The Trump Organization, are also accused of assisting the former president and have testified in the trial stating they barely had any involvement with the annual financial statements of the company, which they had signed. Instead, they said they relied on the accounting firm they had hired.
In September, Engoron ruled that Donald Trump, Eric Trump and Trump Jr., committed fraud in their property evaluations.
The court will decide on six other accusations, including falsifying business records, insurance fraud, and conspiracy claims. Engoron himself will rule on the charges, as Trump's legal team did not opt for a jury trial.
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About the writer
Sean O'Driscoll is a Newsweek Senior Crime and Courts Reporter based in Ireland. His focus is reporting on U.S. law. ... Read more