Trump’s NY Tax Fraud Hit Eclipsed by Impact of Felony Conviction

The $1.6 million penalty two Trump companies must pay for their tax fraud crimes is the maximum under the law, but it is likely to be eclipsed by longer-term blowback to the Trump Organization.

The two business units were sentenced on Friday in New York State Supreme Court after a felony conviction last month. The real punishment lies ahead, in potential fallout that goes beyond reputational damage to freezing the firm out of coveted deals, bank loans and government contracts, legal experts say.

“Doing business with a company that has been found guilty of unscrupulous practices may exceed the ...