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The wide-ranging punishment handed down by a New York judge on Friday against Donald Trump and his family business deals a severe blow to the former president in the local market where he has worked for years.
In addition to a fine of about $355 million, the sentence includes a three-year ban on Mr. Trump’s ability to serve as a company director and seek loans from New York banks.
The ruling retained an independent monitor who had frustrated the Trump family and added an independent compliance director.
“The business is still family-owned in many ways, but it’s outside of family control,” said Will Thomas, a business law professor at the University of Michigan.
President Trump is expected to appeal the ruling, but legal experts see no viable path to avoiding a $355 million fine that must be paid virtually immediately. .
Trump could also obtain bail instead of paying the full amount. But obtaining bail typically requires an advance payment of about 10%, or $35 million, which will not be returned even if Trump successfully appeals, said Brian Quinn, a professor at Boston University School of Law. Stated.
Mr. Trump is known for pushing legal challenges to the limit, or breaking them, and New York state officials have influence over the company.
The company’s properties in the state include Trump Tower, 40 Wall Street, and the Trump Park Avenue Hotel, also known as the venue where Bob Dylan first met the Beatles.
Thomas said those assets could be seized if President Trump does not honor the agreement.
～Controlled by independent monitor～
According to Forbes magazine, President Trump’s New York real estate assets are estimated to be worth about $690 million.
Forbes magazine estimates the former president’s fortune at $2.6 billion, including $870 million in golf clubs and resorts, $190 million in real estate outside York City, and “cash and personal assets.” includes $640 million.
New York Attorney General Letitia James highlighted the fraud committed by Trump and his sons in business, saying on Friday that Trump was “finally being held accountable for his lies, dishonesty, and stunning fraud.” “There is,” he said.
The former president remains deeply unpopular locally as he seeks a third White House bid after decisively losing New York state in both 2016 and 2020.
Trump has a strong reputation in Florida, where his assets include the Mar-a-Lago club, the Trump National Doral Resort in Miami and three homes.
But even if President Trump wanted to move his headquarters to Florida, he would need to be eligible to do business in New York, Quinn said.
In addition, President Trump’s three-year ban on executive positions and the two-year ban on his sons Eric and Donald Jr. mean they will no longer be able to make acquisitions, loans or refinances.
“There’s nothing to prevent him from owning or owning stock,” Quinn said, adding: “It just makes it very difficult to do business.”
Thomas said it becomes much more difficult to move a company to a new state once a legal judgment has been entered against it in a jurisdiction.
Thomas said the courts will now work with independent watchdogs, not the Trumps, to decide exactly how the business will be run.
“New York real estate is the most under the control of the courts,” Thomas said. “But it will be difficult for the rest of the Trump Organization to break free of the limitations of this ruling.”
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