Donald Trump faces $370M fine for New York fraud trial

• Prosecutors have requested a $370 million fine and restrictions on Trump’s business in New York.
• The fine could significantly impact Trump’s finances, potentially reducing his fortune.
• Judge Arthur Engoron will determine the financial penalties.

On Friday, a New York judge is anticipated to deliver a verdict that could determine the future of Donald Trump’s family business. The former president, along with his adult sons and his namesake company, has been found liable for fraudulently inflating the value of assets in statements provided to lenders.

Legal experts informed that prosecutors have requested the judge to impose a $370 million (£291 million) fine on Mr. Trump and to impose restrictions on his ability to conduct business in the state. They highlighted that such a significant penalty, along with a potential final verdict that could significantly affect his real estate empire, could seriously impact Mr. Trump’s finances.

“He’s not going to suddenly become working class,” said former federal prosecutor Diana Florence. “But it’s just going to be a lot of cash. His fortune will be significantly reduced.”

Why could Trump be fined $370 million?

In court, New York Attorney General Letitia James argued that the Trumps should pay $370 million in disgorgement, a financial penalty requiring repayment of money obtained through fraudulent means. She calculated this sum based on three factors: the interest rate savings Mr. Trump allegedly earned on loans due to misstating his assets; the “bonuses” paid to Trump Organization employees involved in the scheme; and the profits from two property deals that Ms. James contends were fraudulently obtained.

Judge Arthur Engoron will determine the financial penalties when he delivers his ruling. Regardless of the amount, Mr. Trump would also be required to pay annual interest on the fine, dating back several years to when the alleged offenses occurred. With New York’s 9% interest rate, Mr. Trump might have to pay an additional nine-figure sum on top of the penalty.

Mr. Trump denies committing fraud and asserts that there was no crime because the banks profited from his investments. He is expected to launch an appeal, which would suspend the verdict until a higher court reviews the case. However, if he wishes to prevent paying the fine or facing the seizure of personal assets during the appeal process, he must still deposit the full amount to be held by the court within 30 days.

A punishing amount – but not a ruinous one:

Forbes Magazine calculated Mr. Trump’s total net worth at $2.6 billion, while the New York Attorney General’s Office estimated his annual net worth at $2 billion in 2021. Based on these estimates, a penalty of $370 million would represent approximately 15-18% of his wealth.

In addition to this impending penalty, Mr. Trump already owes writer E. Jean Carroll $83.3 million in damages from a separate defamation case concluded in January. Furthermore, his legal fees are mounting as he faces four criminal cases at the federal and state levels.

These combined financial burdens may exceed the cash Mr. Trump has available. Legal experts suggest he has several potential options.

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