Why Donald Trump’s fines will keep increasing

US Presidential aspirant, Donald Trump, and his former executives have been slapped with a fine involving millions of dollars after a civil fraud case. According to New York Judge, Arthur Engoron, Donald Trump committed fraud by inflating his assets to gain favourable loans from and banks and insurance companies thereby inviting a fine of nearly $355 million imposed on him.

The facts

Trump’s legal team in an email pleaded with the Supreme Court Justice to postpone making a formal announcement of the ruling. But Judge Arthur Engoron of the New York State Supreme Court in a reply noted that he will only finalise his ruling proposed by the state.

Donald Trump is reported to have been involved in the crime spanning years hence depriving the state of New York money.

The case resulted in a fine of $363,894,816 according to Engoron’s verdict, which also included $9,026,048 in penalties for Trump’s two adult sons and another employee from the corporation. Prejudgment interest increased the total amount all defendants were required to pay to over $464 million.

The arguments

Trump’s riches have long been a source of controversy with many individuals casting doubt on his capacity to pay the award. His net worth was recently estimated by the Bloomberg Billionaires Index to be $3.1 billion, including $600 million in cash assets. Forbes estimated his overall worth to be $2.5 billion last year.

For his dishonesty per the financial dealings, Trump was charged to pay three separate penalties for $168 million, $126.8 million and $60 million.

Trump owed a total of $99 million at the time Engoron’s formal judgment was recorded on February 23, 2023. This amount included a nine percent interest rate that Engoron determined began accruing on the fines in March 2019, May 2022, and June 2023, respectively.

The judge who presided over the civil business fraud case initially fined Trump about $355 million and but the additional $99 million in interest brings the total to about $454 million. In addition, Donald Trump has been temporarily barred from engaging in business activities in New York.

According to the Attorney-General’s office in New York, as of Tuesday, February 27, interest is accruing, rising from the initial daily rate of $87,502 to $111,984. This is 9% of the total amount of $454.2 million, which includes interest before judgment.

Meanwhile, Donald Trump has appealed his $454 million New York civil fraud judgment. He also labelled Engoron’s ruling as a ‘witch hunt’.

The Republican front-runner’s appeal means that, as he gets ready for what is expected to be a rematch with Democratic President Joe Biden in November, yet another court battle will stretch into election season.

Additionally, Trump’s attorneys have maintained that he was unfairly sued under a consumer protection law that is usually intended to punish companies who deceive their clients.

The lawyers led by Alina Habba requested that the appeal division determine whether Judge Engoron’s court “acted in excess of its jurisdiction,” “abused its discretion,” and “committed errors of law and/or fact” in their court filing.

Forbes also estimates that on Friday, two weeks after the initial verdict, Trump will owe around $454.9 million at the nine percent interest rate; he will also owe about $473.8 million six months after the August 16 ruling, $456.6 million a month from the March 16 ruling, and so on. By February 16, 2025, if Trump’s appeal procedure in this case continues for a further year, he will repay $494.4 million.

However, even as Trump challenges the decision, the attorney general’s office claims that interest will continue to accrue until it is paid off.

If the former president is unable to make payment, New York Attorney General Letitia James has also vowed to seize his possessions, including his New York City buildings.