NY attorney general sues Trump, his children for fraud

NEW YORK — New York state's attorney general Letitia James on Wednesday filed a civil suit against Donald Trump and his family for allegedly overstating asset valuations and deflating his net worth by billions for tax and insurance benefits.

James told journalists her office is seeking that the former president pay $250 million in penalties, as well as banning his family "from running NY business for good" and barring him and his company from purchasing property in the state for five years.

She also said her office was making a criminal referral to the US Justice Department. 

The lawsuit, filed in Manhattan, accuses the Trump Organization of wrongdoing in preparing Trump's annual statements of financial condition from 2011 to 2021. It also named the Trump Organization, the former president's son Donald Trump Jr. and his daughter Ivanka Trump as defendants.

James said Trump and the Trump Organization misstated the values of its real estate properties to obtain favorable loans and tax benefits. She said she was referring allegations of criminal wrongdoing to federal prosecutors in Manhattan and the Internal Revenue Service.

"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," James said in a statement.

The lawsuit marks one of the biggest legal blows for Trump since he left office in January 2021. Trump is considering running again for president in 2024.

James' civil probe is separate from a criminal tax fraud probe against the Trump Organization by Manhattan's district attorney, Alvin Bragg.

The company is scheduled to stand trial in October, accused of paying off-the-books benefits to employees. Its former longtime chief financial officer, Allen Weisselberg, has pleaded guilty and will testify against the company. — Reuters/Agence France-Presse