NY attorney general sues Donald Trump and his children for financial fraud

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Donald Trump Falsely Inflated His Net Worth by Billions of Dollars to Further Enrich Himself and Cheat the System, AG says

Trump, Donald Trump Jr., Ivanka Trump, and Eric Trump used fraudulent statements of financial condition to obtain millions in economic benefits

Lawsuit seeks to remove Trump and his children from their roles at the Trump Organization; Ban them from future leadership roles in New York; Repay $250 million they illegally obtained


New York Attorney General Letitia James today filed a civil lawsuit against Donald Trump, the Trump Organization, senior management, and involved entities for engaging in years of financial fraud to obtain a host of economic benefits. The lawsuit alleges that Donald Trump, with the help of his children Donald Trump, Jr., Ivanka Trump, and Eric Trump, and senior executives at the Trump Organization, falsely inflated his net worth by billions of dollars to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company, to satisfy continuing loan covenants, to induce insurers to provide insurance coverage for higher limits and at lower premiums, and to gain tax benefits, among other things. From 2011-2021, Trump and 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.

This conduct was in violation of New York Executive Law 63(12), which gives the Office of the Attorney General “special and broad powers” to go after persistent and repeated fraud and illegality, which in this case includes violating other state laws prohibiting the submission of false financial statements, the falsification of business records, and the commission of insurance fraud.

As a consequence of these violations, the Attorney General’s Office is seeking, among other relief, to: 1) permanently bar Trump, Donald Trump, Jr., Ivanka Trump, and Eric Trump from serving as an officer or director in any New York corporation or similar business entity registered or licensed in New York state; 2) bar Trump and the Trump Organization from entering into any New York real estate acquisitions for five years; 3) award disgorgement of all financial benefits obtained through the persistent fraudulent practices, estimated to total $250 million.

In conjunction with the lawsuit, the Office of the Attorney General has referred the matter to the U.S. Attorney’s Office for the Southern District of New York and the Internal Revenue Service for criminal investigation.