NEW YORK, USA – In a landmark ruling that can significantly impact the political landscape in the States, former President Donald Trump has been ordered by the New York Court to pay a staggering $355 million. This penalty is seen as one of the many legal setbacks he might face this year.
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The Background Behind Donald Trump’s NY Civil Fraud Trial Ruling:
The court’s decision stems from a civil fraud trial where Trump was found to violate several financial regulations. Trump fraudulently overstated his net worth on key financial statements to receive tax and insurance benefits.
This overstatement of net worth was used to dupe lenders, which is a violation of financial regulations.
Alongside the hefty penalty of $355 million, Justice Engoron also suspended Mr. Trump for 3 years from serving in top roles at any New York company, including his own organization.
The penalty extended to the former President’s adult sons as they were ordered to pay more than $4 million each while serving a two-year ban.
However, this wasn’t the First Time…
Donald Trump, throughout his career as a business tycoon and the President of the USA, has shared a love-hate relationship with the judicial system of the country.
Recently, at the turn of 2024, Donald Trump faced a major setback in the courtroom. He was convicted of sexually abusing a writer by the name of E. Jean Carroll, and he was penalized with a whopping amount of $83.3 million.
Similarly, in 2017, Donald Trump was made to pay a hefty fee of $25 million to settle lawsuits over Trump University (now inoperative), to end 7 years of legal battles with customers who claimed they were misled by failed promises to teach success in real estate.
Donald Trump being ordered to pay $355 million seems no big deal, as the man has already established himself in the Guinness Book of World Records for being sued the most in the history of mankind.
But the Lawsuit can Rack His Finances…
The $355 million penalty imposed on Donald Trump’s NY civil fraud trial ruling could have a significant impact on his finances. At an annual rate of 9%, as prescribed by New York law, this interest can add up quickly.
As of the ruling, Trump owed another $98.6 million in interest, bringing the grand total to $453.5 million. Interestingly, with every passing day, interest increases the total amount Trump owes by more than $87,000.
Beyond the financial implications, these legal setbacks could have serious implications for Trump’s potential run in the 2024 Presidential elections. While he has faced legal challenges in the past, the magnitude of the current penalties is unprecedented and could prove to be a major stumbling block for Trump’s campaign.
Notably, the biggest gainers from the verdict will be his opponent-in-chief and his successor Joe Biden, and the Democrats, in general, who have been continuously using these legal issues to question Trump’s suitability for office.
With the Presidential elections set for 2024, it will be interesting to see how Donald Trump’s NY civil fraud trial ruling impacts his candidacy.