Donald Trump's companies may find themselves in unexpected situations after the former President of the United States was convicted of the crime on February 16 Tax fraudwhereupon it happened sanctioned with $355 million and was barred from serving as an officer or director of some of his companies in New York for three years.
Until now, in this scenario of great uncertainty in Donald Trump's organization, his sons Donald Jr. and Eric will also not have access to civil servant positions or assume the position of directors in their industries in this global city.
Accordingly, the former United States leader will not be able to hold any official or director positions in some of his China-based companies for three years new York. This happens after a ruling by the Judge Arthur Engoron. The case was initiated by the attorney general of this city, Letitia Jamesagainst Donald Trump.
The background to this investigation is the alleged submission of fraudulent financial reports in their companies in order to benefit from favorable insurance terms and loans. Likewise, neither Donald Trump's organization nor he will be able to apply for loans from any financial institution registered or licensed in New York City.
Trump will not be able to hold executive or director positions in some of his companies. Photo: AFP
What is happening to Trump's companies?
Will Thomas, assistant professor of business law at the University of Michigan Ross School of Business and a specialist consulted by CNN, claimed: “Trump still owns his companies. But he and his family can't really manage or maintain it. His control options have been drastically reduced. Furthermore, he added: “It seems to me a really dramatic blockage to their ability to access capital.”
Likewise, David Cay Johnston, a Pulitzer Prize-winning journalist and author of several Trump manuscripts, noted that “the bottom line is that the New York Attorney General's Office got the money, but not the permanent bans (against the companies) from Trump.”), which he wanted.
On the other hand, the final decision requires that an independent monitor, Court assigned in 2022, and a new independent chief compliance officer primarily run the Trump Organization. The decision extended the observer's role “for at least three years.”
The reason Judge Engoron gave for not revoking the company's business licenses Trump card It is based on the introduction of a new government structure. “Going forward, there will be two-tier oversight – an independent monitor and an independent compliance director – over key activities that could lead to fraud, so that revocation of business licenses is no longer necessary,” he said in his decision.
Donald Trump is expected to appeal the verdict after being convicted of tax fraud. Photo: AFP
What impact will the $355 million fine have on Trump's industries?
Donald Trump and his companies are obliged to do so Reimbursement of $355 million based on income that Judge Engoron determined was obtained unlawfully through fraudulent acts. If interest is added from the dates specified in the verdict, the final amount could rise to more than $450 million, according to New York prosecutors' calculations.
Trump is expected to appeal the ruling. You have the option to appeal first to the Appellate Division and then to the New York State Court of Appeals. This process could potentially drag on until 2025 before reaching a final conclusion. However, this does not relieve them of the immediate obligation to pay the $355 million plus accrued interest that must be placed in escrow during the appeal process to ensure compliance with the judgment issued by Engoron if confirmed. The source of these funds remains uncertain, although Trump said last year that he had $400 million in cash that could cover the claimed amount if that claim were true.