Key Takeaways:
– Every morning, Donald Trump accrues $87,500 in interest on the massive legal penalties he received last week in Manhattan.
– Repaying nearly half a billion dollars in fines and interest is set to carry on until resolved, increasing by 9% annually.
– Allegations against Trump and his team focus on intentionally committing fraud, misrepresenting his worth in numerous financial deals.
– The penalties and their impact are provoking Trump, who plans an appeal and continues rallying his diehard supporters amid growing debt figures.
Paying the Price
Every morning, unlike most New Yorkers who spend some spare change on breakfast, former President Donald Trump wakes up with debt growing — by $87,500 in interest each day. This financial headache comes from the massive series of legal penalties bestowed upon him in a Manhattan civil fraud case—an eye-watering sum set to continue until he pays nearly half a billion dollars in interest and fines.
Considerable Consequences
Last Friday, state Supreme Court Justice Arthur Engoron’s verdict left a significant mark on the former president. The colossal fines against Trump and his longtime Trump Organization executives will persistently magnify by 9% per year—amounting to daily interest of $87,500 or an estimated $32 million annually, according to AP calculations.
Engoron’s stinging ruling found Trump, his former finance chief Allen Weisselberg, company controller Jeff McConney, and Trump’s sons, Eric and Don Jr., liable for fraud. They stand accused of habitually exaggerating Trump’s worth, often by billions, in dealings with financial institutions. Engoron held Trump and his aides accountable for top fraud claims even before the trial began in earnest.
Heaviest Blow
Of the imposing $364 million pre-interest penalties in Engoron’s ruling, Trump carries the bulk. His penalties include being barred from leading a New York business for three years. The judge specifically ordered Trump and his controlled entities to repay $168,040,168 from misrepresented net worth in loans tied to his real estate ventures, like his Wall Street skyscraper, Doral golf resort, Old Post Office hotel, and Chicago hotel among others.
Adding Further Insult
The judge added $126,828,600 to Trump’s tally, the profit from the Old Post Office’s recent sale—secured with fabricated valuations of his net worth. The final hit comes from Trump’s dealings with his Bronx golf course at Ferry Point Park. Trump must repay $60 million he pocketed from its sale based on false representations made during the winning bid for licensing.
Appeals Amidst Anger
As the penalties are taking a toll, a furious Trump promises to appeal, capitalizing on his legal battles to rally diehard supporters. Through his Truth Social platform, Trump labelled his predicaments as “shocking”, denouncing the involvement of corrupt politicians and judges. With the possibility looming of a court-controlled account or bond by mid-March, Trump’s financial woes appear likely to escalate.
Chasing a Billion in Debt
Added up with the outstanding $88.3 million owed to writer E. Jean Carroll for proven sexual abuse and defamation charges, Trump’s financial troubles are nearing a billion dollars. According to Trump’s claim during the AG’s office deposition in April 2023, his company accounts held roughly $400 million in cash. The former president’s latest Forbes reported worth was around $2.6 billion, including assets. However, the escalating penalties Trump now faces may profoundly impact these figures.
Possible Pathways
As for Trump’s response to these tremendous financial woes, Syracuse University’s Bankruptcy Clinic director Gregory Germain suggested three paths: Posting the total amount, appealing for a lower bonding requirement, or facing the risk of judgment creditors implementing their judgments against Trump’s assets. The latter could force Trump to file for bankruptcy protection, akin to Rudy Giuliani’s December filing.
Regardless of his civil woes, Trump continues to face significant legal challenges. The 77-year-old Trump remains pleading not guilty to 91 felonies across four state and federal cases, potentially carrying more than six centuries in prison time.