Trump sued for fraud over ‘inflated’ assets

Attorney general accuses ex-president of inflating assets and seeks to bar him from business in New York

New York’s attorney general has filed a fraud lawsuit against Donald Trump and his three oldest children to stop them doing business in the state. In the civil suit in the State Supreme Court in Manhattan, Letitia James claims the Trumps “grossly” inflated the former president’s net worth to secure better terms on loans from banks. Ms James is seeking $250million (£220million) in penalties and a prohibition on the Trumps from leading any company or purchasing property in New York.

‘Claiming you have money you do not have does not amount to the art of the deal. It is the art of the steal’

NEW YORK’S attorney general has filed a fraud lawsuit against Donald Trump and his children to prevent them doing business in the state.

In the civil lawsuit filed in the State

Supreme Court in Manhattan, Letitia James claims the Trumps “grossly” inflated the former president’s net worth by “billions of dollars” to secure better terms on loans from banks.

Ms James is seeking $250million (£220 million) in penalties and a prohibition on the Trumps from leading any company or purchasing property in New York.

Through “persistent” and “staggering” fraud, the Trumps convinced banks to lend money to the Trump Organisation on more favourable terms than deserved, according to the lawsuit, which names Mr Trump, children Ivanka, Eric and Donald Jnr, the company, and two of its executives, Allan Weisselberg and Jeff Mcconney.

The suit claims that between 2011 and 2021 Mr Trump’s Florida estate and golf resort, Mar-a-lago, was valued as high as $739million, 10 times its real value.

Trump Turnberry, his golf club in Ayrshire, Scotland, was valued at $127 million, the suit said, but had operated at a loss since opening in 2017.

The Trump family goal, the attorney general’s office has said, was to burnish the patriarch’s billionaire image by exaggerating the value of his properties, while playing down the value of assets at other times for tax purposes.

“Claiming you have money you do not have does not amount to the art of the deal. It’s the art of the steal,” Ms James said. “There aren’t two sets of laws for people in this nation: former presidents must be held to the same standards as everyday Americans.”

The lawsuit is the culmination of a three-year investigation, and has the potential to become the most important legal challenge that Mr Trump faces.

If he loses, a judge could impose financial penalties and restrict his business operations – possibly in the middle of a 2024 presidential campaign.

Mr Trump has denied all the allegations and called the investigation a politically motivated “witch hunt” by Ms James, who is a Democrat.

Last month, he declined to answer questions in a deposition at the office of the attorney general, invoking his constitutional right against self-incrimination more than 400 times.

Ms James claimed that Mr Trump and his family business violated several state criminal laws and “plausibly” broke federal criminal laws as well.

She has referred the findings to federal prosecutors.