Trump Got Off Easy

By Alec Pruchnicki

The decision to fine Trump $440 million and ban him from operating his business for three years has been described as a massive punishment. It could have been much worse. As a legal layman, I don’t know exactly what the intricacies of the law allow or the exact legal definitions of everything I am going to propose. However, from a common-sense moral point of view, there are a few things Trump got away with.

First, the money. The basic payment of $360 million and interest of $180 million is a lot. Yet, the core $360 million was calculated based on what he saved on loan interest by misstating his financial estimates. This misrepresentation enabled him to finance multiple projects around the country, including substantial buildings and golf courses. Anyone who has applied for a mortgage knows that a small change in the interest rate can mean the difference between a new home and no home. Still, the fine is only compensatory and does not cover punitive damages, meaning that it will only go to the State of New York. In this way, other parties in the financial community who suffered from Trump’s inaccurate financial statements will not receive payment.

So, what would actual punitive damages amount to? In the E. Jean Carroll slander case, she was awarded $16 million in compensatory damages but $65 million in punitive damages. If Trump were given a similar proportion of punitive to compensatory damages in this case, he would be fined an additional $1.5 billion, for a grand total of about $2 billion.

You may think, “isn’t the $540 million Trump owes now a massive enough amount?” To this, I say, no. He is already asking his supporters for donations and hawking gold sneakers as collectibles. Although he is not allowed to borrow from NY banks right now, he might be able to borrow from other sources. For instance, his son-in-law, Jared Kushner, is sitting on an investment fund of Saudi Arabian funny money worth $2 billion. Kushner could loan Trump the $540 million with a theoretical interest charge, declaring it as an investment—not a bailout. Alternatively, Kushner could always stiff his father-in-law but that would be a piece of poetic justice that seems too far-fetched.

You may also point out, “Trump is banned from operating his NY business for three years!” So what? Drug and crime lords can sometimes operate their cartels from prison with the use of proxies. Trump has lots of similar lackeys and minions who can run his business while waiting for his return. Although there will be a special overseer reviewing his businesses, this supervisor can probably only prevent the outright fraud that occurred in the past. Even a diligent overseer will find it difficult to operate every single aspect of every single property.

Most importantly, what happens after three years, when Trump comes back in control? Before, during, and after this trial, he has refused to show remorse and insists that all of his legal entanglements are the result of a political witch hunt. Three years in theoretical exile will not make him see the error of his ways. He’ll just return to his business with the same desire to game the system, albeit a bit more carefully so he won’t get caught. The solution to this would be to dissolve the company completely, like the fraudulent Trump University and Trump Foundation were disbanded. However, Judge Engoron chose to punish him with a three-year time-out.

This leaves us with two unresolved questions. First, if Trump appeals this decision, can a higher court increase the punishment instead of reducing it? Second, when will some judge, somewhere, have the opportunity and guts to throw this guy in jail?