Donald Trump faces possible ‘fire sale’ of valuable business assets

If former President Donald Trump refuses to pay a fine imposed after a civil fraud trial in New York, much of his real estate could be sold by the government at “fire sale prices,” says former White House counsel. said.

“Will he be able to harden them? No,” John Dean, who served under Richard Nixon during the Watergate scandal, told CNN on Saturday. “What’s going to happen is the attorney general is going to come in and foreclose on the property and liquidate it at a fire sale price. And that’s probably going to require more buildings than the attorney general can negotiate.”

newsweek asked a lawyer representing Mr. Trump for comment via email on Monday.

On Friday, Trump was fined about $355 million by Judge Arthur Engoron after it was found that he had overvalued several Trump properties and exaggerated his net worth in order to secure loans and business deals. was ordered to pay.

The ruling also fined several Trump associates, including his sons Donald Jr. and Eric, and barred the former president from serving as an officer or director of any New York company for three years.

Engoron argued that the defendants’ “facts and expert witnesses simply denied reality,” that “their complete lack of remorse and remorse is pathological,” and that the defendants committed “venial sins, not mortal sins.” Even though it turns out they did, they are “unable to admit the error of their ways.”

Following the ruling, President Trump continued to disparage Engoron and New York Attorney General Letitia James, who brought the case, calling the case politically motivated.

Trump denied any wrongdoing throughout the trial, and his lawyers vowed to appeal the verdict. They need to find funding or secure a deposit within 30 days.

The valuations of some of Mr. Trump’s most prominent properties, including his Mar-a-Lago mansion in Palm Beach, Florida, his triplex apartment in Trump Tower, and 40 Wall Street in New York City, were determined by Judge Engoron’s previous appraisals. This was questioned in the judgment.

Compounding the problem is that President Trump was ordered to pay prejudgment interest on three parts of the penalty dating back to March 2019, May 2022, and June 2023.

“This judgment is actually a little higher than people think,” Dean said, adding that pre-judgment interest amounts to “about another $100 million on this judgment that already exists, and a daily rate of 9%.” “It’s increasing at a rate,” he added.

“This is not something he can sit back and watch. Even if he appeals, the interest rate is clearly continuing. So this is increasing the debt.”