How Trump's $355-million fine in fraud case will impact him
Former United States (US) President Donald Trump was fined $355 million on Friday (local time) in a civil fraud case. A New York judge found him liable for unlawfully inflating his wealth and manipulating the value of properties to obtain insurance and bank loans on favorable terms. The judge also banned him from running companies in New York for the next three years, which could severely impact his financial status and business empire.
Why does this story matter?
The development comes amid Trump's attempts to strengthen his status as the front-runner in the Republican primary for the upcoming US presidential election. Despite facing numerous civil and criminal trials, Trump's recent New Hampshire and Iowa primary wins suggest he continues to hold his popularity among Americans. However, the latest development has the potential to undercut his carefully crafted image of a successful businessman, which has propelled his unexpected ascension from reality television star to onetime president.
Bans and restrictions on Trump and his sons
In addition to Trump, his sons, Eric and Donald Trump Jr., have also been asked to pay a fine of $4 million each in the 90-page judgment and are barred from serving as directors for two years. The former US president and his two sons were found liable for massively increasing the value of their properties by hundreds of millions of dollars during a trial that concluded in January of this year. However, they denied any wrongdoing.
Trump's reaction to being fined $355 million
The 77-year-old called the case a "fraud on me" and a "political witch hunt." Meanwhile, his lawyer, Alina Habba, labeled the ruling a "manifest injustice" and the outcome of a "multi-year, politically fueled witch hunt that was designed to take down Donald Trump." The trial spanned more than two months and featured testimony from 40 witnesses, including Trump himself, his children, and top Trump Organization executives.
Trump to appeal against judgment
While addressing the media outside his Mar-a-Lago estate after the judgment, Trump announced that "we'll be appealing" the decision handed down by New York Judge Arthur Engoron. Furthermore, the 77-year-old accused US President Joe Biden of driving the prosecution against him and called it "weaponization against a political opponent who's up a lot in the polls."
Trump calls judgment 'election interference'
Additional judgments and future implications
Trump won't be required to pay the money right away while the appeals process is ongoing. If ordered to pay, his financial situation may be severely impacted since he has been fined an additional $83.3 million for defaming writer E. Jean Carroll after he denied her accusation of sexual assault from decades earlier. An independent monitor will be installed to oversee Trump's business for three years. The monitor will ensure that the business adheres to financial reporting and accounting rules.
Can Trump afford the fine?
Forbes estimates Trump's net worth at $2.6 billion, while the New York Attorney General's Office estimates his annual net worth at $2 billion in 2021. According to these estimations, a $354.9 million penalty would cost Trump around 14-17% of his wealth. In addition to the penalty, he is facing four criminal cases at the federal and state levels, which are adding to his legal bills. These combined financial burdens may exceed the amount of cash Trump has available, BBC reported.
