FROM OUR CORRESPONDENT
WASHINGTON – Donald Trump must pay a $354.9 million fine and his sons Don Jr. and Eric, 4 million each. New York Judge Arthur Engoron's highly anticipated ruling came last night in the economic fraud civil trial against Trump and the leaders of the Trump Organization.
The judge had already issued the ruling, agreeing with Democratic state Attorney General Letitia James, who accused the Trump Organization of providing false financial information and inflating the value of assets to banks and insurance companies for about a decade in order to obtain loans and benefits to obtain insurance.
Yesterday's decision concerned the amount of the fine (the prosecution had asked for $370 million, 15-18% of its assets). Instead, the judge backed down from his earlier decision to break up the holding companies, but imposed restrictions: notably an “independent monitor” to monitor the Trump Organization’s activities. Trump will not be able to do business or borrow money in New York for at least three years; his two children are forbidden from doing so for the next two years. It's unclear what this will mean for the company's future and whether daughter Ivanka could take over. Judge Engoron, a Democrat, wrote: “You didn't rob a bank at gunpoint, Donald Trump is not Bernard Madoff,” but noted the “complete lack of remorse bordering on pathology” from the tycoon and his children.
For Trump it is a personal case that affects his identity as an entrepreneur. Alina Habba, his lawyer, defined the verdict as “clearly unjust, the culmination of a witch hunt designed from the start to destroy 'Donald Trump'.”
In addition to the enormous sum, there is the approximately $90 million that Trump has to pay for the defamation of the journalist E. Jean Carroll. Not to mention the court costs for the four criminal proceedings that are still pending. This could lead to liquidity problems. The former president will appeal, but while he awaits the verdict, he may still have to deposit the amount with the court within thirty days. He could also pay a smaller portion (around 10%) thanks to a “bond” he received from a surety company (which requires additional costs for interest and collateral), but some say it won't be easy for him to find someone to take over that. admitted after being convicted of lying about his wealth. It's unclear how much cash Trump has on hand (he said he has $400 million in cash) and estimates of his wealth vary. Forbes magazine estimated his net worth at $2.6 billion, with real estate assets in New York alone at $490 million; his social network Truth is worth 4 billion. He could sell some goods. He could also ask his supporters for help (according to the New York Times, 10% of the donations he receives go toward paying his lawyers). However, there are limitations to the use of campaign funds and it is difficult to achieve such numbers in a short period of time.