New York Attorney General Seeks Preemptive Fraud Liability Verdict Against Trump, Alleges Overstating Net Worth by Nearly $2.2B

The Attorney General of New York, Letitia James, has made a plea to a state judge for a preliminary declaration of fraud liability against former U.S. President Donald Trump. This comes amid accusations that Trump submitted false financial statements to bankers and insurers, exaggerating his net worth by as much as $2.23 billion.

What Happened: As reported by Reuters, Attorney General James submitted filings to a Manhattan state court on Wednesday. These revealed evidence of “repeated and persistent fraudulent use” of misleading financial statements by Trump and his family business over a decade from 2011 to 2021. James argues that the Trumps inflated the values of over a dozen assets by hundreds of millions of dollars, establishing their liability for fraud under state law.

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James is seeking a minimum of $250 million from Trump, his adult sons Donald Jr. and Eric, the Trump Organization, and others. She also seeks to prevent the Trumps from conducting business in New York. However, the defendants’ attorneys have moved to dismiss the case, calling it a “crusade against President Trump” and claiming that many of the transactions in question are too old to be legally examined.

The trial, distinct from four criminal charges against Trump, is set to begin on October 2 under state Supreme Court Justice Arthur Engoron. Trump maintains his innocence in all cases, labeling them as a Democratic witch hunt.

Why It Matters: The lawsuit by Attorney General James alleges a decade-long, extensive fraud that Trump used to benefit himself.

In a retaliatory move Trump, Trump sued James in a Florida Court, accusing her of leading a “crusade” against him and his business.

Despite Trump’s attempts to block James’ access to to his private trust records, a federal judge in Florida denied his request.

According to Trump’s former lawyer, Michael Cohen, this case could financially destroy the the former president.

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