Aiexpress – According to ABC News’ calculations based on the judge’s extensive ruling in the case, former President Donald Trump is accumulating an additional $87,502 in post-judgment interest every day until he settles the $354 million fine imposed by Judge Arthur Engoron in his civil fraud case.
In the civil fraud case filed by New York Attorney General Letitia James, Judge Engoron has imposed a fine of $354 million on Trump. Additionally, an amount of approximately $100 million in pre-judgment interest has also been levied. The judge found Trump and his adult sons guilty of inflating Trump’s net worth to secure more favorable loan terms. Despite the allegations, the former president maintains his innocence and plans to appeal the ruling.
The court has directed Trump to pay pre-judgment interest on every illicit profit, with the interest accumulating from the date of each transaction. Additionally, a post-judgment interest rate of 9% will be applied once the court finalizes the judgment in the case.
According to University of Michigan business law professor Will Thomas, the mounting interest that Trump owes, which amounts to over $600,000 per week, will not only contribute to his increasing legal bills but also impact his strategy for the appeal process.
According to ABC News, University of Michigan business law professor Will Thomas explained that if Trump loses on appeal, he would be responsible for paying both the pre-judgment and post-judgment interest.
In an interview with ABC News, James made a strong statement, promising that Trump would be held accountable for the fine. He emphasized that even if Trump doesn’t have the cash, measures like seizing his assets, such as his namesake buildings, would be taken to ensure the payment.
James informed ABC News that if the individual in question lacks the financial means to settle the judgment, they will pursue legal measures to enforce the judgment. In such cases, they will request the court to seize the individual’s assets.
Here are four key points to understand about the significant penalties imposed by Trump.
Why does Trump need to pay a 9% interest rate?
Judge Engoron has ordered Trump to pay a fine, and as part of the ruling, he has also imposed a 9% interest rate. This decision is in accordance with the New York Civil Practice Law & Rules.
Engoron had to determine the start date for the accrual of pre-judgment interest, which varies depending on the specific transaction at hand.
Trump is required to pay post-judgment interest at a rate of 9% per year on the fine. This interest begins accruing from the day the ruling was issued, which is Friday, and will continue until the full amount is paid.
How did the judge determine Trump should pay $354 million?
Judge Engoron has ordered Trump to pay approximately $354 million in disgorgement, which is based on three different categories of ill-gotten profits.
The judge has ruled that Trump must pay $168 million in potential interest that his banks lost due to his deception. Trump had used false financial statements to obtain a lower interest rate. Starting from March 4, 2019, the day the New York Attorney General’s investigation began, Trump has been ordered to pay pre-judgment interest for these transactions.
Trump is currently responsible for a debt of $60 million, which is the result of the profits he made from selling a golf course in New York. The interest on this transaction started to accumulate on June 26, 2023, when Trump sold the lease of the course to Bally’s.
Trump sold his Washington, D.C., hotel, and he is currently responsible for a debt of $126 million related to the profits from the sale. The interest on this fine started accruing on May 11, 2022.
What about the other co-defendants?
Donald Trump Jr. and Eric Trump, the adult sons of Trump, were fined $4 million each for the profits they made from the sale of the D.C. hotel, as stated in Engoron’s ruling. The ruling also mentioned that they have accumulated $643,183 in interest on the fine, and they are now liable to pay an additional $990 per day.
Former Trump Organization CFO Allen Weisselberg faced a hefty fine of $1 million due to the separation agreement he signed upon his departure from the company. Judge Engoron concluded that this agreement was strategically crafted to secure Weisselberg’s unwavering allegiance to the Trump Organization and discourage any cooperation with law enforcement.
According to Engoron, there is strong evidence suggesting that the $2 million separation agreement negotiated with Allen Weisselberg was intended to compensate him for his ongoing refusal to cooperate with any parties that have interests conflicting with the defendants. Engoron further argues that allowing Weisselberg to benefit financially from his involvement in fraudulent activities would be unjust, considering his pivotal role in numerous instances of wrongdoing committed by the defendants.
In addition to the overall fine, Weisselberg is also responsible for paying an extra $100,356 in interest.
What happens when Trump appeals?
According to Thomas, Trump will need to deposit the full amount of the fine into an escrow account in order to halt the accrual of interest during his appeal of Engoron’s ruling.
Although Engoron’s ruling will result in an automatic stay of the enforcement of Trump’s appeal, Trump must first deposit funds into an escrow account or provide a bond to proceed with the appeal.
If Trump chooses to post a bond to cover the fine while he appeals, the interest will continue to accumulate, potentially adding tens of millions of dollars in the process.
Thomas expressed his astonishment to ABC News, stating that the amount of money involved was significant.
