Consequences of Trump Org guilty verdict

“As a practical matter, the potential $1.6M penalty is near meaningless,” noted former federal prosecutor Mitchell Epner, who is now a partner at the New York City-based law firm Rottenberg Lipman Rich PC.

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Far more potentially onerous are two possible collateral consequences of the verdict. One is the threat that the company will be barred from conducting future business with the federal government, which could keep the Secret Service from staying at the former president’s hotels.

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The Trump Organization’s felony convictions do not automatically prevent the company from contracting with the federal government, but they could invoke what is known as the “debarment” process for contracts.

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Looming even larger for the company, the Trump Organization could also find itself in default on outstanding real estate loans.

“In virtually every real estate loan that I’ve been familiar with, over the last 25 years on commercial real estate in New York, there is a standard clause that says it is an event of default if the borrower is convicted of a felony that has as one of its elements: fraud,” Epner said.

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A Manhattan jury returned guilty verdicts on all 17 counts leveled at the Trump Corporation and the Trump Payroll Corp., giving the companies a rap sheet that experts say would fall squarely into these standard real estate contract clause.

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In combination these two collateral consequences could cause “major financial headaches” for Trump.

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Being president of the United States was a status that improved Trump’s otherwise poor credit risk, Epner noted.

“Now, because rates have moved up so much, even his old above-market loans are well below market,” he added. “So if the lenders simply call the loans, they can lend out that money to him or to other people at much higher rates.”

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“Today’s convictions are likely to embolden the DOJ and the Fulton County DA to continue moving their investigations towards indictments,” Epner predicted. “Acquittal of the Trump Organization would have meant the ‘Teflon’ was intact. Now, it is clear that, at least in New York, the Trump name can be convicted.”

  Law and Crime

Something that should have been done decades ago, which would have saved the country and the world the disastrous effects of having Trump in the White House.

...but hey, do what you want...you will anyway.