New York: Donald Trump, the former US president, was ordered by a New York judge to pay $355 million on Friday. The ruling found him liable for unlawfully inflating his wealth and manipulating property values to secure bank loans and insurance on favorable terms.
Impact on Trump’s Business
The ruling also imposed a three-year ban on Trump running companies in New York, dealing a significant blow to his business empire and financial standing. It bars him from being the CEO of Trump Org and from holding any top business office in the state.
Compliance Measures
Trump is required to appoint a new independent “compliance” officer. A third-party monitor will oversee Trump’s assets, including the Trump Tower and other New York properties, to ensure compliance with financial reporting and accounting rules.
Impact on Trump’s Sons
Eric and Donald Trump Jr., Trump’s sons, were also found liable in the case and ordered to pay more than $4 million each. They, like their father, are prohibited from making acquisitions, taking loans, or refinancing for two years.
Financial Implications
Trump faces the immediate challenge of paying a $355 million penalty, plus a high-interest rate of 9% while his appeal goes through the New York courts. He will likely need to give the bond company about 10% of the penalty in cash to get a security bond.
Trump’s Wealth
A 2021 document from Trump Org, presented in court during the fraud trial, stated that Trump had nearly $293.8 million in cash and cash equivalents, with a total net worth of $4.5 billion. Forbes estimates the worth of Trump’s New York real estate assets at $690 million, and his fortune at $2.6 billion. However, the Attorney General’s office disputed these figures.
Appeal and Legal Challenges
Trump plans to challenge the ruling, branding it a “sham” and accusing President Joe Biden of driving the prosecution. The appeal process may take a couple of years. Veteran New York lawyer Ron Kuby suggested that Trump’s legal team needs to add someone well versed in New York real estate law.
Other Legal Issues
Last month, a Manhattan federal jury ruled that Trump must pay $83.3 million in damages for defaming advice columnist E.Jean Carroll. A separate jury also found him guilty of sexually assaulting the columnist. Trump must also prepare for a criminal trial in the ‘hush money’ case starting March 25.
