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Thursday November 21, 2024

Will Donald Trump be able to pay $370 million fine in New York fraud trial?

Donald Trump has been found guilty of falsely inflating worth of assets in statements to lenders

By Web Desk
February 16, 2024
Donald Trump gestures during a political gathering. — AFP/File
Donald Trump gestures during a political gathering. — AFP/File

A New York judge's decision in Donald Trump's civil fraud trial is anticipated on Friday, which may make him pay a $370 million fine subjecting a significant impact on his financial future.

The former president has previously been found guilty of falsely inflating the worth of assets in statements to lenders, as have his adult sons and the corporation bearing his name.

The judge has been requested by the prosecution to punish Trump $370 million (£291 million) and impose limitations on his capacity to do business in the state.

Even for a billionaire, that is a substantial sum of money. Legal experts warned the BBC that such a big fine might deal a devastating blow to Trump's finances, especially in light of a possible ruling that may have a significant impact on his real estate company.

"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."

Trump claimed to have $400 million in cash on hand during a deposition in this matter; however, the BBC was unable to independently verify that amount. But that wouldn't be enough to pay a fresh $370 million fine on top of his previous legal obligations and costs.

"He's got to think about what to do with his assets, how to perhaps liquidate businesses to come up with that money," said Sarah Kristoff, a former federal prosecutor.

The majority of Trump's wealth comes from his real estate holdings. According to Forbes, his real estate empire in New York is valued at $490 million (£384 million), which includes the $56 million (£44 million) valuation of his flagship condominium building, Trump Tower.

In order to pay his tens of millions of dollars in legal bills, Trump might also rely on his enormous fundraising machine. The New York Times claims that 10% of every dollar donated by his fans is used to cover the cost of his legal defence in both civil and criminal proceedings.

Even though these kinds of organisations are usually used for political ends, he has raised money to pay for these trials through two political action committees: Make America Great Again, which sponsors his presidential candidature, and Save America, which has served as his main source of funding for legal expenditures. These are not affiliated with his official campaign account for president.