Donald Trump’s family business could face a major turning point this Friday, as a New York judge prepares to announce the outcome of his civil fraud trial.
Previously, Trump, along with his adult sons and his company, were found guilty of inflating asset values in statements to lenders.
Prosecutors are seeking a hefty $370 million fine for Trump and restrictions on his business activities in the state.
Experts believe this penalty, combined with potential impacts on his real estate empire, could severely dent Trump’s finances, although he remains wealthy.
“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 the $370 million fine?
New York Attorney General Letitia James argued that this sum represents the gains Trump made through fraudulent activities, including interest rate savings, employee bonuses, and profits from property deals.
Judge Arthur Engoron will decide the final penalties.
Adding to the pressure, Trump would also face annual interest payments on the fine, potentially totaling a significant sum.
Trump denies fraud allegations, planning to appeal the verdict, which would delay the penalty.
But to avoid immediate payment or asset seizure during the appeal, he must deposit the full amount within 30 days.
A Costly Blow, but Not Fatal
Forbes estimates Trump’s net worth at $2.6 billion, suggesting the $370 million fine could dent his wealth by around 15-18%.
However, he already owes $83.3 million in damages from a defamation case and faces mounting legal fees from other ongoing cases.
Options for Payment
Trump could seek a bond, but this would incur additional costs and require collateral.
Selling assets might raise the necessary funds, although liquidating businesses could be complex.
Alternatively, he could turn to his fundraising apparatus, which has previously covered legal expenses.
Yet, raising such a large sum quickly would be challenging.
According to campaign finance rules, Trump’s political action committees could potentially contribute to the penalty.
Regardless of the payment method, a significant fine would pose substantial financial challenges for Trump.
“Trump, for all of his misrepresentations and lies about his wealth, really is a wealthy person,” said business professor William Thomas.
“But most people don’t have $400m lying around.”
