NEW YORK. The verdict in the civil trial of Donald Trump and his two sons Donald Jr and Eric for the inflated assets of the family holding company is expected today. The indictment focuses on the alleged manipulation of Trump's financial information to obtain credit advantages, resulting in significant legal consequences and potential financial impacts on his assets. The judge asked for sanctions of 370 million dollars and the banning of the tycoon from entrepreneurial activity in the State of New York (for his children only for five years). The proposed sum is calculated taking into account several factors: the alleged savings on loan interest due to the false inflation of assets, the “bonuses” paid to employees involved in the scheme and the profits obtained from real estate deals considered fraudulent. The fine would be a deadly blow to his business empire and his image as a successful entrepreneur.
How much he should pay and how he could do it
The former president, in addition to the 370 million, would also be forced to pay annual interest on the fine, dating back to several years ago, when the alleged crimes took place. The interest rate imposed in New York is 9%, which means he could have to pay an additional nine-figure sum on top of the fine. According to a calculation by Forbes magazine, Trump's total net worth is $2.6 billion. The New York Attorney General's Office estimated his annual net worth at $2 billion in 2021. Based on these estimates, a $370 million fine would cost Trump approximately 15-18% of his net worth. . On top of this fine, he already owes writer E Jean Carroll $83.3 million in damages from a defamation lawsuit that settled in January. His legal bills are also rising because he is fighting four criminal cases at the federal and state levels.
To avoid paying everything up front, Trump could try to get a bond — a third-party guarantee that would allow him to pay the entire fine. This would cost him many more millions, with added interest and fees. He would also likely be required to provide collateral. In this case, if Trump has to shell out $370 million, he may have to pay a bonding company $37 million to issue the bond without getting that sum back.
In a deposition, Trump said he had $400 million in cash, but even that wouldn't be enough given the looming legal fees. In this case he could sell properties. Much of his fortune is tied to his real estate ventures. According to Forbes, those in New York amount to 490 million dollars, including Trump Tower, worth 56 million dollars. His portfolio also includes other properties across the United States including golf courses, condominiums, hotels and even a winery.
Trump may also turn to his supporters to pay the tens of millions in legal fees. According to the New York Times, 10% of every dollar raised by his supporters goes to pay for his defense in civil and criminal trials. He has used two committees — “Save America,” which has been his primary vehicle for legal fees, and “Make America Great Again,” which finances his presidential bid — to raise money to cover the costs of these trials, even though these organizations should only be used for political purposes. Between his first indictment in March 2023 and the end of the year, his “Save America” committee spent nearly $40 million on lawyers and other related expenses, according to Forbes. Under federal campaign finance rules, Trump could not use “Save America” to pay the court-ordered fine in this case.
#Trump #faces #million #fine #York #fraud #trial #pay