Subject: Re: Trump's $364 Million Dollar Civil Fraud Judgm
So the financial numbers are significantly worse and more murky than outlets were reporting initially after the judgment was released.

The figure now being cited as "the amount" is $455 million. That is roughly $355 x 1.09^3 or $355 million compounded at 9% for three years. It seems in NYS, civil fines for these types of actions are applied with interest from either the date of the offense (or maybe the last offense?) or from the date charges are filed. The 9% rate is actually driven by a component of state law which until 2024 had been 9% but was lowered to 2% by a bill passed by the NYS Legislature and signed by Governor Hochul. So I guess Trump has THAT to look forward to... Accrued interest on FUTURE civil judgments will only cost him 2% interest.

Also as I understand what is being conveyed about New York State law regarding civil judgments, if you appeal a judgment, you have only 22 days to pay the cash or post a bond into a state escrow while working your appeal. There also seems to be a 120% factor that applies as well so it COULD be that Trump would need to actually find

$355 x 1.09^3 x 1.2 = $551 million

just for this fraud verdict. He also has the $83 million judgment pending from the E. Jean Carroll trial subject to the same math. Apparently, the person owing civil penalties owes interest while their appeal is pending so just that interest could be nearly $55 million dollars per year, as much as he's spending on legal fees at the moment.

A reporter for Bloomberg that has been following Trump stated that Trump has actually been anticipating this cash draw and has been quietly trying to sell smaller properties for probably the last year. Part of this activity could also be a reflection of a cash crunch that began during his presidency when many of his income sources from licensing deals collapsed when other businesses wanted nothing to do with the Trump "brand."

One concern with all of this... The Special Purpose Acquisition Company (SPAC) that was set up in 2021 shortly after Trump exited office to arrange an IPO for Trump's media company (the one that operates Truth Social) has been given approval by the SEC. Financial journalists are estimating that IPO could eventually be worth about $4 billion to Trump. However, it is not likely that deal will close soon enough to satisfy this cash draw. More critically for Trump, his stake in the company has restrictions which prevent him from unloading any of his shares for six months after any deal closes. Even if a deal closed on February 19, Trump would be unable to sell his shares until August 19. Since Truth Social has had issues paying monthly bills for basic data center operations at the core of its operation, it does not appear to be highly profitable so it isn't clear what is driving the current valuation. I'm sure it has nothing to do with rich foreigners trying to curry favor with someone who might regain the Presidency.


WTH