New York Attorney General Letitia James announced Wednesday that her office has filed a civil lawsuit against former President Donald Trump, three of his adult children and the Trump Organization, accusing them of more than 200 cases of tax fraud. course of the last decade. As punishment, James’s office is demanding around $250 million from the Trump family and his company.
That’s a huge amount of money, even for someone like Trump, who, despite apparently not being as wealthy as he claims, still has a higher net worth than most. we. The sanction James’ office is seeking probably wouldn’t be enough to force the Trump Organization to shut down for good. But here’s the thing: if successful, James’s lawsuit would deal an even bigger blow to Trump than the one against his wallet. It could essentially throw him, his family, and their business out of New York — forever.
This lawsuit could essentially throw him, his family, and their business out of New York — forever.
Initially, it appeared that a fine of this magnitude from James’ office could single-handedly end the Trump empire. In 2020, the Trump Organization was facing $479 million in loans coming due over the next four years, and according to documents filed by James earlier this year, the then-president only had ( “only”) $93 million in liquid assets available to him at the time. Trump International in Washington, his hotel, was plunged into red and floundering, like many of his other properties at the height of the pandemic.
Then, as always, things once again managed to rock Trump’s path. As Dan Alexander of Forbes reported in July, longtime Trump associate Steven Roth of Vornado Realty Trust stepped in last year with a timely windfall on two properties where Trump had a minority stake: Roth has managed to secure new loans from JPMorgan Chase that pushed back the date those loans would mature until 2028 and netted Trump about $162 million.
The Trump family also successfully unloaded Trump International in Washington in May. That sale raised enough money to pay Deutsche Bank $170 million that should have been paid in 2024, Forbes reported. Trump took in about $135 million on that deal, according to Forbes, while the three children named in James’ costume — Donald Trump Jr., Eric Trump and Ivanka Trump — received about $13 million each, according to Alexander.
Trump’s other major lifeline came in the form of a small internet-only company called Axos Financial. Trump Tower in Manhattan had a $100 million mortgage due this month, a major headache even with the recent influx. Axos managed to refinance that loan, as well as provide $125 million to cover a Deutsche Bank loan on its Doral golf course in Florida that was due to mature next year, Forbes reported.
Imagine the psychic damage Trump would suffer if ripped from the family business he spent decades building
In total, Forbes estimated Trump now has about $375 million in cash, more than enough to cover the $250 million in penalties James is seeking. But money isn’t the only thing James is looking for as a reward. His office is also asking the courts to prohibit Trump and the Trump Organization from:
- buy any property in New York for the next five years;
- apply for loans from any New York-based or registered financial institution for the same term; Where
- operate subsidiaries under various names currently registered with the state.
James’ preferred punishment would also bar Trump and his children named as co-defendants from “serving as an officer or director of any New York corporation or similar business entity registered and/or licensed in the State of New York.”
In effect, that would mean Trump – who started his empire in Queens and dreamed of expanding to Manhattan – would be short of not just New York, but New York State as well. The Trump Organization could still go on, just without him or his children running it. (He could, in theory, appoint Tiffany Trump or Melania Trump in his place, but I somehow doubt that would fly with a court.)
Losing the presidency was such a blow to Trump’s psyche that he won’t even admit he lost. Instead, he created an alternate reality involving a massive conspiracy against him. Imagine the psychic damage he would suffer if ripped from the family business he spent decades building through deceit, shortcuts and outright alleged fraud.
Yes, he has already decamped to Mar-a-Lago for his residence. But who is Trump without his companies? What will he do if he no longer always seeks the love and approval of a town that never really loved him back? Such a banishment would be harsh on anyone, let alone the 76-year-old narcissist – but there may be no more appropriate punishment than having the New York real estate mogul kicked out of the place. where it all started.
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