In a vortex of legal complexities, former President Donald Trump is potentially staring down a whopping $600 million in fines, according to his erstwhile lawyer, Michael Cohen.
A report by Raw Story on Sunday, October 1, 2023, unfurls the tapestry of alleged fiscal malfeasances by the Trump Organization, seizing headlines and sparking inquiries regarding Trump’s financial robustness amid such a tempest.
Cohen, intimately acquainted with Trump’s financial maneuvers, has vaulted into the limelight in this evolving legal theater.
In a dialogue with MSNBC’s Jen Psaki, Cohen extrapolated on the $250 million fine anticipated by Attorney General Letitia James, deeming it merely an introductory figure.
Cohen, voicing his skepticism regarding Trump’s propensity to confront the trial, noted, “And again, that assumes that he actually appears tomorrow for it.”
He proffered that Trump’s hesitancy to appear is ostensibly tied to his concurrent legal fray with Cohen himself.
Cohen placed a speculative bet on Trump’s court appearance, stating, “Knowing Donald the way that I do, I would say that there is less than a 20 percent chance that he actually shows up.”
He pondered over the necessity of Trump’s attendance, proposing that the former President may merely seek to spectate as the judge gauges the scope of the financial implosion.
Cohen underscored Attorney General Letitia James’ initial $250 million estimate, insisting it was just the precursor to a more colossal fine, potentially surpassing $600 million.
“She does not believe that it will be less than $250 million. I suspect that it will be an excess of $600 million,” emphasized Cohen.
Rooted in an indictment from September 21, 2022, the allegations pivot on assertions by James that for over a decade, the Trump Organization utilized deceptive statements to acquire advantageous loans.
The purported financial gain from these alleged false pretenses was around $250 million, enveloping interest savings and transaction gains.
Cohen warned against anchoring solely on the $250 million, entreaty-ing observers to weigh the repercussions of accruing interest and ensuing fines.
“If interest is 2 percent per month, at $250 million, that’s $5 million annually,” detailed Cohen, adding, “So, tack on another five years for that. Compound it, you’re talking about another $30 -35 million. That’s just the interest penalty.”
He further delineated the ballooning implications of accruing interest against a loftier base amount, such as $500 million, amounting to an annual interest of $10 million.
In a revelation about Trump’s fiscal health and the hypothetical impact on his assets, Cohen hypothesized that Trump might not possess the financial fluidity to manage even the foundational $250 million fine, not to mention a heftier levy.