The jury in the Sean “Diddy” Combs trial completed their second day of deliberations on Tuesday, weighing a verdict that could not only put the rapper and business mogul in prison but also strip Combs of a sizable share of his wealth.
The jury in Manhattan federal court is debating whether Combs is guilty of racketeering conspiracy, two counts of sex trafficking and two counts of transportation for the purposes of prostitution, all of which Combs has denied.
Combs’ vast portfolio features multi-million-dollar mansions in Los Angeles and Miami, a private jet, high-priced art and private investments, among other holdings, including his Bad Boy Entertainment business assets, which include his Bad Boy Records label.
Last year, before Combs was indicted but after his Los Angeles and Miami homes were raided by federal agents and the video of him physically assaulting former girlfriend Cassie Ventura came to light, Forbes estimated Combs’ net worth at $400 million, which marked a sharp decline from the outlet’s estimate in 2019 of $740 million.
The federal government could seize some of Combs’ assets if he’s found guilty and a conviction would increase the likelihood of success for potential civil suits, some experts told ABC News. If Combs is acquitted, they added, he likely would risk losing some income due to the stigma attached to information that was disclosed at trial.
Here’s what to know about how the Combs trial could impact his wealth, according to legal experts who spoke with ABC News.
What could happen to Combs’ wealth if he’s found guilty?
When federal prosecutors unsealed their indictment against Combs in September, the allegations called for the forfeiture of Combs’ assets in the event of a conviction. Referencing a charge of racketeering conspiracy against Combs, for instance, prosecutors said they would seek all assets “acquired or maintained” in violation of the law.
An attempt to seize assets is fairly common when prosecuting racketeering conspiracy charges, also known as RICO cases, Kenworthey Bilz, a law professor at the University of Illinois, told ABC News.
If prosecutors proved that Combs’ private jet was used to transport sex workers or clients, for example, the asset could be seized, Bilz said. Assets unrelated to the alleged crime, however, couldn’t be touched.
“The government would have to prove that assets were used to further the enterprise,” Bilz said.
In the event of a conviction, Combs’ punishment could also include financial penalties and a requirement that he pay restitution to some victims, Nikos Passas, a professor of criminology and criminal justice at Northeastern University, told ABC News.
“Whenever you have a very wealthy person convicted of this sort of crime, you’re going to have huge implications,” Passas said. “There’s serious damage that he’s done and he has the deep pockets to cover it.”
Combs could also face additional payouts as result of potential civil lawsuits, which would prove more likely to succeed after a criminal conviction, the experts said.
In criminal cases, prosecutors must prove guilt beyond a reasonable doubt. In civil suits, however, prosecuting attorneys need only establish a preponderance of evidence, meaning they must show it’s more likely than not that a defendant committed the offense.
“A criminal conviction on some or all charges would certainly bolster civil claims against Diddy,” Clark Neily, senior vice president for legal studies at the Cato Institute and professor at the University of Texas School of Law, told ABC News.
What might happen to Combs’ wealth if he’s acquitted?
If acquitted, Combs will avoid the immediate financial penalties that would otherwise arise from the criminal case, as spelled out in the indictment, but he would remain exposed to potential civil lawsuits as well as possible lost income due to his damaged reputation, the experts told ABC News.
“For a high-profile artist and performer like Diddy, reputation is currency,” Jeff Apruzzese, professor of the music industry at Drexel University, told ABC News. “For him, right now, that currency is devaluing pretty fast.”
Combs could face greater challenges booking venues and establishing endorsements or corporate partnerships, Apruzzese said. Even more, Apruzzese added, Combs will face difficulty garnering invites to award shows and signing new artists to record deals, limiting his alternate pathways to income.
In 2021, singer R. Kelly – whose full name is Robert Sylvester Kelly – was convicted on nine counts, including racketeering charges tied to the sexual exploitation of children and was sentenced to 30 years in prison.
While Kelly was found guilty, the outcome serves as a cautionary tale about the importance of preserving one’s reputation in the music industry, Apruzzese said, adding that “R. Kelly’s revenue pretty much dried up completely after everything that happened.”
David B. Allan, a professor of music marketing at St. Joseph’s University, said many fans may turn away from Combs regardless of the verdict – and they’ll take their spending power with them.
“I think the jury of public opinion has already decided, and they to a large extent feel like he’s guilty of something that they don’t approve of,” Allan said.
