As of: February 27, 2024, 3:36 a.m
By: Kilian Beck
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The ex-president must pay the fine from the New York fraud trial in mid-March.
There is speculation as to whether he can do that.
New York – The court rulings against former US President Donald Trump are becoming a problem for him and his corporate empire.
In mid-February, a New York court sentenced him to a fine of around $355 million (around €330 million) for systematically manipulating the value of his companies.
Trump's team is appealing the verdict.
But he still has to pay, with at least nine percent interest since the investigation began in 2018, reported the US portal
Daily Beast
.
Accordingly, Trump now owes the state of New York around half a billion US dollars, to be paid by mid-March.
Donald Trump and Alina Habba in the courtroom © IMAGO/Doug Mills
Trump reportedly wants to have $400 million in liquid assets - most of the assets in real estate
According to a report in the
Wall Street Journal
, Trump is said to have received a large part of the money from the sale of a hotel in Washington DC.
The investment company CGI Merchant Group bought the hotel in 2022 for $375 million.
According to the report, this was a significantly inflated price and the company said it also had to finance it by $100 million.
It is therefore unclear whether all of the money has already flowed to Trump.
However, it could be that the profit from the sale currently only amounts to a double-digit million amount.
In April, Trump "bragged"
to New York Attorney General Letitia James that he had $400 million in liquid assets, according to the
Daily Beast .
A large part of the
ex-president's fortune, estimated by
Forbes
and
Bloomberg at around $2.5 billion, is in real estate.
However, exactly how much these are worth is an ambiguity that brought Trump the judgment in question.
And in order to challenge the verdict, as New York law requires, Trump must advance the sentence.
Typically, according to
the Daily Beast
, such payments are processed through special insurance companies, which in turn require collateral.
“How are you supposed to get a president in court?” – expert on risky clients Trump
It is “rare” that “the solvency” of those affected in such cases is “really questioned” by the companies, said N. Alex Haley, managing director of such an insurance company in Florida, to the portal.
In this case, however, it depends on how credibly Trump can prove the value of his real estate if he does not have enough money.
“He could have problems with that,” estimated Haley, referring to the process that led to the verdict.
Neil Pedersen, who also runs such a firm, pointed out that Trump's possible second term as president would also deter potential lenders.
“How are you supposed to get a president on trial?” he asked rhetorically.
Trump's election campaign is probably cash-strapped - Biden is swimming in money
Trump avoided major lawsuits during his time in office.
For example, the now successful libel lawsuit by journalist E. Jean Carroll, to whom he now has to pay $83.3 million.
He verbally abused her after she accused him of raping her in the 1990s.
It was unclear on Monday (February 26) when exactly this sum was due.
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Trump's election campaign is also apparently having financial problems.
According to a report by the
Associated Press (AP)
news agency , the two central organizations financing the election campaign are said to have about $36.6 million at their disposal.
The main cost factor is said to be legal and court costs, which are said to amount to around $50 million from the election law proceedings against Donald Trump alone.
US President Joe Biden's campaign is said to have around $170 million at its disposal.
(KiBec)