New York Attorney General Letitia James has announced a major lawsuit against Donald Trump and three of his adult children. James has accused the family of engaging in "numerous acts of fraud and misrepresentations" for 20 years.
The civil lawsuit is asking for a $250 million settlement in favor of New York and is also asking a judge to prevent the Trumps from starting any new businesses in the state.
James explained at a press conference, "We found that Mr. Trump, his children, and the corporation used more than 200 false asset valuations over a ten-year period."
The lawsuit includes several allegations against the family.
These allegations include overinflating the value of Trump's home and golf resort, Mar-A-Lago, to $739 million. James argues the true value is $75 million.
This distinction is important because the higher amount is "based on the false premise that it was unrestricted property and could be developed for residential use even though Mr. Trump himself signed deeds donating his residential development rights and sharply restricting changes to the property."
The lawsuit also raises the possibility that criminal charges of bank fraud could be filed against the family. James alleges that the family convinced banks to loan money to the Trump Organization on terms that were in their favor, despite instances in which they should not have been able to do so.
The lawsuit states, "Mr. Trump made known through [Trump Organization CFO] Mr. Weisselberg that he wanted his net worth on the Statements to increase — a desire Mr. Weisselberg and others carried out year after year in their fraudulent preparation of the Statements. The scheme to inflate Mr. Trump's net worth also remained consistent year after year."
In response to the lawsuit filed by James' office, Manhattan District Attorney Alvin Bragg explained, "Our criminal investigation concerning former President Donald J. Trump, the Trump Organization, and its leadership is active and ongoing."
Trump has denied any wrongdoing so far.
An attorney for Trump explained, "Today's filing is neither focused on the facts nor the law — rather, it is solely focused on advancing the Attorney General's political agenda."
The attorney continued, "It is abundantly clear that the Attorney General's Office has exceeded its statutory authority by prying into transactions where absolutely no wrongdoing has taken place. 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."
