New York sues Trump for fraud as ex-president claims 'witch hunt'

By Darren Lyn

HOUSTON, United States (AA) - New York Attorney General Letitia James announced on Wednesday she is suing Donald Trump, his children and the Trump Organization for $250 million for a decade of financial fraud.

Trump fired back calling it another "Witch Hunt by a racist Attorney General."

“With the help of his children and senior executives at the Trump Organization, Donald Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and cheat the system," said James in the lawsuit.

The civil suit alleged that between 2011 and 2021, Trump -- with the help of his children Donald Trump, Jr., Ivanka Trump and Eric Trump, as well as senior executives at the Trump Organization -- fraudulently inflated his net worth by billions of dollars to induce banks to lend money to his business on more favorable terms.

That alleged fraudulent action allowed the Trump Organization to gain access to economic perks such as inducing insurers to provide insurance coverage for higher limits and at lower premiums as well as gaining tax benefits.

"The very foundation of his purported net worth is rooted in incredible fraud and illegality," said James. "Mr. Trump thought he could get away with the art of the steal, but today, that conduct ends."

The suit also claimed that the Trump Organization knowingly and intentionally created more than 200 false and misleading valuations of assets on his annual Statements of Financial Condition to defraud financial institutions, which violated New York Executive Law.

That allowed the Attorney General's office to go after persistent and repeated fraud and illegality, which in this case included violating other state laws prohibiting the submission of false financial statements, the falsification of business records and the commission of insurance fraud.

Trump took to his social media platform to blast the lawsuit.

"Another Witch Hunt by a racist Attorney General, Letitia James, who failed in her run for Governor, getting almost zero support from the public, and now is doing poorly against Law & Order A.G. candidate, highly respected Michael Henry," he wrote. "I never thought this case would be brought - until I saw her really bad poll numbers. She is a fraud who campaigned on a “get Trump” platform, despite the fact that the city is one of the crime and murder disasters of the world under her watch!"

The Attorney General's office is suing Trump for financial gains obtained through the fraudulent practices.

James is also seeking to permanently bar Trump and his children from serving as officers or directors in any New York corporations or similar business entities and wants to bar the former US president and the Trump Organization from entering into any New York real estate acquisitions for five years.

"There are not two sets of laws for people in this country; we must hold former presidents to the same standards as everyday Americans," said James. "I will continue to ensure that no one is able to evade the law, because no one is above it."

James has referred the matter to the US Attorney’s Office for the Southern District of New York and the Internal Revenue Service for criminal investigation.