New York’s attorney general sued former President Donald Trump and his company on Wednesday, alleging business fraud involving some of his most prized assets, including properties in Manhattan, Chicago and Washington, DC.
Attorney General Letitia James’ lawsuit, filed in New York state court, is the culmination of the Democrat’s three-year civil investigation into Trump and the Trump Organization. Trump’s three eldest children, Donald Jr., Ivanka and Eric Trump, were also named as defendants, along with two longtime company executives, Allen Weisselberg and Jeffrey McConney.
The lawsuit seeks to strike at the core of what made Trump famous, casting a black light on the image of wealth and opulence he has adopted throughout his career, first as a real estate developer, then as a reality TV host on “The Apprentice” and “Celebrity Apprentice”, and later as president.
James, a Democrat, announced details of the lawsuit at a news conference Wednesday. The case was filed in court Wednesday morning.
“Donald Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and cheat the system, thereby deceiving us all,” James said at the news conference.
The goal, the attorney general’s office said, was to bolster Trump’s billionaire image, and the value of his properties in doing so gave him an advantage, while at other times he minimized the value of assets for tax purposes.
James wants to remove the Trumps from the companies involved in the alleged fraud and wants an independent monitor appointed for no less than five years to oversee the Trump Organization’s compliance, financial reporting, valuations and disclosures to lenders, insurers and authorities fiscal
She is seeking to replace the current trustees of Trump’s revocable trust, which controls his business interests, with an independent trustee, to prevent Trump and the Trump Organization from making commercial real estate purchases for five years, from obtaining bank loans from New York for five years. five years and permanently prohibits Trump and his three eldest children from serving as an officer or director in any New York corporation or similar business entity registered and/or licensed in New York State.
It also seeks to permanently bar Weisselberg and McConney from the role of financial controller of any New York corporation or similar business entity registered and/or authorized in New York State.
James said his investigation uncovered potential criminal violations, including falsifying business records, issuing false financial statements, insurance fraud, conspiracy and bank fraud. He said his office is referring those findings to federal prosecutors and the Internal Revenue Service.
The goal, the attorney general’s office said, was to bolster Trump’s billionaire image, and the value of his properties in doing so gave him an advantage, while at other times he minimized the value of assets for tax purposes.
Alina Habba, a lawyer for Trump, said the lawsuit “is not focused on the facts or the law, but is focused solely on advancing the attorney general’s political agenda.”
“It is abundantly clear that the Attorney General’s Office has exceeded its legal authority by investigating transactions where no crime has occurred,” Habba said. “We are confident that our judicial system will not stand for this unchecked abuse of authority, and we look forward to defending our client against each and every one of the Attorney General’s meritless claims.”
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