Former President Donald Trump Ordered to Pay Over $350 Million in New York Fraud Case
In a shocking turn of events, former President Donald Trump has been ordered by a New York judge to pay over $350 million in a fraud case. The ruling comes as a blow to Trump and his organizations, as they now face looming penalties that could pose a significant challenge to their financial stability. The judge found that Trump and his associates had committed fraud while building his real estate empire by deceiving banks, insurers, and others through the overvaluation of assets and the exaggeration of his net worth on financial documents.
Judge Arthur Engoron ruled that Trump and his organizations will owe over $354 million in damages, along with 9% interest. Additionally, Trump has been barred from running a business as an officer or director in New York State for three years. The judge is expected to issue a decision soon on whether to increase the amount Trump will have to pay to the $370 million plus interest sought by New York Attorney General Letitia James.
This ruling comes just weeks after Trump was ordered to pay over $83 million in a defamation case brought by writer E. Jean Carroll, who accused him of sexual assault. In total, Trump now faces more than $400 million in penalties, raising questions about his ability to pay without having to sell off assets.
Trump’s net worth has been estimated at $2.6 billion by Forbes, but a document from the Trump Organization included as evidence during the trial stated that he had $293.8 million in “cash and cash equivalents” in 2021. However, this figure includes $93 million in non-liquid assets. Trump has disputed these figures, claiming that they do not take into account the billions of dollars in brand value that he possesses.
It remains unclear how much cash and liquid assets Trump currently holds, but it appears that even if he were to use all available resources, it would not be enough to cover his court liabilities without either putting properties up as collateral during the appeal process or liquidating those assets by selling them.
Trump’s attorney, Christopher Kise, has stated that Trump will appeal the ruling and expressed confidence that the Appellate Division will correct the alleged errors made by the trial court. Lawyers have suggested that Trump will likely have to put up 10% of the penalty in cash and use properties as collateral to cover a security bond during the appeals process. However, there is no certainty that the appeals court will reduce the penalties ordered by the judge, and the entire process could take several years.
The Trump Organization has yet to comment on the ruling.
New York Governor Kathy Hochul has sought to alleviate concerns from the business and investment community, assuring them that this case is an isolated incident and does not reflect on law-abiding business owners. She emphasized that most businesspeople are different from Donald Trump and his behavior, stating that they have nothing to worry about.
It is important to note that the governor does not have a say in determining the size of a fine, as that decision rests with the judiciary. Hochul emphasized the need for a clear separation of powers and expressed that interference from the executive branch would be inappropriate.
This ruling against Trump serves as a reminder of the legal challenges he continues to face even after leaving office. The financial implications of these cases raise questions about his ability to maintain his business empire and may force him to divest some property assets. As Trump prepares for his appeal, the outcome of this case will undoubtedly have far-reaching consequences for both him and his organizations.
