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BBC HomepageSkip to contentAccessibility HelpYour accountLiveNotificationsHomeNewsSportWeatheriPlayerSoundsBitesizeMore menuMore menuSearch BBCHomeNewsSportWeatheriPlayerSoundsBitesizeCBBCCBeebiesFoodClose menuBBC NewsMenuHomeIsrael-Gaza warCost of LivingWar in UkraineClimateUKWorldBusinessPoliticsCultureMoreTechScienceHealthFamily & EducationIn PicturesNewsbeatBBC VerifyDisabilityWorldAfricaAsiaAustraliaEuropeLatin AmericaMiddle EastUS & CanadaTrump faces a $370m fine in New York fraud trial. How would he pay it?Published3 minutes agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesImage caption, Former President Donald Trump speaks to the press before closing arguments at his civil fraud trial in New YorkBy Nada Tawfik, Madeline Halpert, & Kayla EpsteinBBC News, New YorkThe future of Donald Trump’s family business may be decided on Friday when a New York judge is expected to deliver a verdict in his civil fraud trial. The former president, his adult sons and his namesake company have already been found liable for fraudulently inflating the value of assets in statements to lenders. Prosecutors have asked the judge to fine Mr Trump $370m (£291m) and to put restrictions on his ability to conduct business in the state. That’s a lot of money, even for a billionaire. Legal experts told the BBC that a penalty that large, coupled with a potential final verdict that may greatly impact his real estate empire, could deliver a serious blow to Mr Trump’s finances.”He’s not going to suddenly become working class,” said former federal prosecutor Diana Florence. “But it’s just going to be a lot of cash. His fortune will be significantly reduced.”Why could Trump be fined $370 million?The New York Attorney General Letitia James told the court that $370m was the appropriate amount the Trumps should pay in disgorgement, a financial penalty that involves paying back the money gained through fraudulent means.She calculated the sum based on three factors: money Mr Trump allegedly earned in interest rate savings on loans due to misstating his assets; “bonuses” paid to Trump Organization employees who participated in the scheme; and profit realised from two property deals that Ms James alleges were obtained fraudulently.It is up to Judge Arthur Engoron to determine the financial penalties when he delivers his ruling. A guide to Trump’s four criminal casesWhatever the amount, Mr Trump would also have to pay annual interest on that fine, dating back several years to when the alleged offences took place. New York’s 9% interest rate means Mr Trump might have to pay an additional nine-figure sum on top of the penalty.Mr Trump denies committing fraud and says there was no crime because the banks made money on his investments. He is expected to launch an appeal, which would put the verdict on hold until a higher court reviews the case. But if he wants to avoid paying the fine or have personal assets seized while the appeal process plays out, he still has to deposit the full amount to be held by the court within 30 days.A punishing amount – but not a ruinous oneOne calculation from Forbes Magazine put Mr Trump’s total net worth at $2.6bn. The New York Attorney General’s Office estimated his annual net worth at $2bn in 2021. Based on those estimates, a penalty of $370m would cost Mr Trump roughly 15-18% of his wealth. On top of this looming penalty, however, he already owes the writer E Jean Carroll $83.3 million in damages from a separate defamation case that concluded in January. His legal fees are also mounting as he battles four criminal cases at the federal and state level.These combined financial burdens may constitute more cash than Mr Trump has available. Legal experts say he has several potential options.Image source, Shannon Stapleton-Pool/Getty ImagesImage caption, Judge Arthur EngoronTrump could secure a bond, but it will cost himTo avoid paying everything upfront, Mr Trump could try to secure a bond – a third-party guarantee that he can pay the full fine. That would cost him many more millions, with added interest and fees. He would also likely be required to put up collateral.To secure a bond from a bonding company, a person typically needs to put up about 10% of the total amount owed, Steven Cohen of the New York Law School explained. So if Mr Trump owed $370m in disgorgement, he might have to pay a bond company $37m (£29m) to issue the bond. And he will not get that fee back.Trump could sell assets to raise enough cashIn a deposition in this case, Mr Trump said he had $400m in cash on hand (the BBC could not verify that sum independently). With his other legal liabilities and fees, however, that would not be enough to cover a new $370m fine.”He’s got to think about what to do with his assets, how to perhaps liquidate businesses to come up with that money,” said Sarah Kristoff, a former federal prosecutor. Much of Mr Trump’s fortune is tied to his real estate ventures. Forbes found his New York real estate empire to be valued at $490m (£384m) including his flagship condominium skyscraper, Trump Tower, worth $56m (£44m) by the outlet’s count. The many lives of Trump TowerHis portfolio includes many other properties around the country, with golf courses, condominium towers, hotels and even a winery. His stake in the Trump Media & Technology Group, which operates the Truth Social messaging platform and is pursuing a public listing, is estimated to be worth almost $4bn. But how investors value that firm has swung wildly in recent months; and under the terms of the deal, he would not be allowed to sell shares to raise money right away. “Something is going to have to be sold or realised in order to get the money to pay for that kind of cost,” said William Thomas, a professor at the University of Michigan Ross School of Business.Image source, Seth Wenig-Pool/Getty ImagesImage caption, New York Attorney General Letitia James sits behind Donald Trump in court during closing argumentsTrump could ask his loyal supporters for the moneyMr Trump may also turn to the massive fundraising engine he uses to pay his tens of millions in legal fees. According to the New York Times, 10% of every dollar that is raised from his supporters goes to pay for his defence in his civil and criminal trials.He has used two political action committees – Save America, which has been his primary vehicle for legal fees, and Make America Great Again, which funds his presidential bid – to raise money to cover the costs of these trials, even though such structures are typically used for political purposes. These entities are separate from his official presidential campaign account.Between his first indictment in March of 2023 to the end of the year, his Save America political action committee spent nearly $40m on lawyers and other related fees, Forbes calculated.Under federal campaign finance rules, Mr Trump could potentially use Save America to pay a court-ordered penalty, said Shanna Ports, a senior counsel at the Campaign Legal Center. He would not be allowed to make this payment with official campaign funds, she added.But fundraising might not be practical in Mr Trump’s case anyway, attorneys told the BBC.A large penalty would “create a real cash-flow crunch for him to come up with nine figures in cash in very short order,” said former federal prosecutor Michel Epner. He added it would be an extraordinary amount to fundraise from his supporters in a brief time period.According to filings with the Federal Election Commission, his Save America PAC started the new year with $5m in cash on hand. Mr Trump will only get a clearer picture of what this means for his business and personal fortune when Judge Engoron delivers his final ruling. But no matter how he chooses to pay, any major penalty will likely cause serious financial headaches for the former president.”Trump, for all of his misrepresentations and lies about his wealth, really is a wealthy person,” said Mr Thomas, the business professor. “But most people don’t have $400m lying around.”If you’re in the UK, sign up here.And if you’re anywhere else, sign up here.Related TopicsDonald TrumpMore on this storyA guide to Trump’s four criminal casesPublished1 day agoThe many lives of Trump TowerPublished4 JanuaryTrump blasts judge as New York fraud trial nears endPublished11 JanuaryTop StoriesLive. Jailed Russian opposition politician Alexei Navalny dead, says prison serviceJob not done despite huge poll wins over Tories, says StarmerPublished19 minutes agoChris Mason: Tory gloom deepens after double poll blowPublished1 hour agoFeaturesAlexei Navalny, Russia’s most vociferous Putin criticAlexei Navalny jokes in January video from penal colony. 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[ad_1] A New York judge is expected to rule in a civil fraud trial that threatens his family’s business empire.
![BBC HomepageSkip to contentAccessibility HelpYour accountLiveNotificationsHomeNewsSportWeatheriPlayerSoundsBitesizeMore menuMore menuSearch BBCHomeNewsSportWeatheriPlayerSoundsBitesizeCBBCCBeebiesFoodClose menuBBC NewsMenuHomeIsrael-Gaza warCost of LivingWar in UkraineClimateUKWorldBusinessPoliticsCultureMoreTechScienceHealthFamily & EducationIn PicturesNewsbeatBBC VerifyDisabilityWorldAfricaAsiaAustraliaEuropeLatin AmericaMiddle EastUS & CanadaUkraine Russia war: US warns Avdiivka could fallPublished3 hours agoShareclose panelShare pageCopy linkAbout sharingRelated TopicsWar in UkraineThis video can not be playedTo play this video you need to enable JavaScript in your browser.Media caption, “I will die here”: Evacuation “angels” help front-line town’s last residents fleeBy Jaroslav LukivBBC NewsThe US has warned that Russia could seize Ukraine’s key eastern town of Avdiivka – the scene of some of the fiercest fighting in recent months. “Avdiivka is at risk of falling into Russian control,” National Security Council spokesman John Kirby said, citing Ukraine’s ammunition shortages. Ukrainian President Volodymyr Zelensky vowed to do everything to “save as many Ukrainian lives as possible”.Russian troops have made gains in Avdiivka, threatening to encircle it.The town – which has been almost completely destroyed – is seen as a gateway to nearby Donetsk, the regional Ukrainian capital seized by Russian-backed fighters in 2014 and later illegitimately annexed by Moscow.Russian President Vladimir Putin launched a full-scale invasion of Ukraine on 24 February 2022.Ukraine battles frostbite and shell shortage in ruined town Nothing but rubble: Ukraine’s shattered ghost town AvdiivkaAt Thursday’s briefing in Washington, Mr Kirby said Avdiivka could fall largely “because the Ukrainian forces on the ground are running out of artillery ammunition”.”Russia is sending wave after wave of conscript forces to attack Ukrainian positions,” he said. “And because Congress has yet to pass the supplemental bill, we have not been able to provide Ukraine with the artillery shells that they desperately need to disrupt these Russian assaults.”Russian forces are now reaching Ukrainian trenches in Avdiivka, and they’re beginning to overwhelm Ukrainian defences.”Earlier this week, the US Senate approved a $95bn (£75bn) foreign aid package – including $60bn for Ukraine – after months of political wrangling, but it faces an uphill battle in the House of Representatives.Ukraine is critically dependent on weapons supplies from the US and other Western allies to be able to continue fighting Russia – a much bigger military force with an abundance of artillery ammunition.Nato Secretary General Jen Stoltenberg warned on Thursday that the US failure to approve continued military assistance to Ukraine was already having an impact on the battlefield.Image source, ReutersImage caption, Smoke rises over an industrial site in Avdiivka on ThursdayIn his video address late on Thursday, President Zelensky said: “We are doing everything we can to ensure that our warriors have enough managerial and technological capabilities to save as many Ukrainian lives as possible.”On Friday, Mr Zelensky is visiting Berlin and Paris where is expected to sign security pacts with German Chancellor Olaf Scholz and French President Emmanuel Macron.A similar agreement on security co-operation was signed between Ukraine and the UK in January.Late on Thursday, Ukrainian General Oleksandr Tarnavsky admitted that “fierce battles” were taking place “within” Avdiivka.”We value every piece of Ukrainian land, but the highest value and priority for us is the preservation of the life of a Ukrainian soldier,” he said.Earlier in the day, Ukraine’s military spokesman Dmytro Lykhoviy acknowledged that Ukrainian troops in Avdiivka were being forced to “sometimes move to more advantageous positions… in some places leaving positions”.Some Ukrainian soldiers have privately admitted the town could fall at any moment.”We’re upset,” Ukrainian officer Oleksii, from Ukraine’s 110th Mechanised Brigade in the Avdiivka area, told the BBC earlier this week, standing beside a huge mobile artillery piece as Russian guns boomed in the distance.”Currently we have two shells, but we have no [explosive] charges for them… so we can’t fire them. As of now, we have run out of shells,” said Oleksii. He suggested that the shortages were widespread and having a dramatic impact on the fighting in Avdiivka.”We feel a very strong responsibility for our guys fighting right now in the town, armed only with assault rifles.”Ukraine’s newly appointed commander-in-chief, Oleksandr Syrskyi, visited the frontline in the Avdiivka area this week, acknowledging that the situation there was “difficult”.He said the Russian military did not “count losses”, using its troops as cannon fodder.Kyiv says an elite Ukrainian brigade has now been sent to Avdiivka and reserve artillery has been deployed.In unverified reports, Russian military bloggers said on Thursday that a key Ukrainian defence position in southern Avdiivka – known as Zenit – was now under Moscow’s control.Related TopicsWar in UkraineRussiaUkraineMore on this storyUkraine battles frostbite and shell shortage in ruined townPublished15 hours agoNothing but rubble: Ukraine’s shattered ghost town AvdiivkaPublished30 JanuaryFull cemeteries and empty homes: Ukrainians struggle to endurePublished1 day agoThe Ukrainians ‘disappearing’ in Russia’s prisonsPublished6 days agoTop StoriesLive. 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