What New York's $250 Million Lawsuit Means For Donald Trump, His Children And Their Company

Former US President Donald Trump, along with three of his adult children and their family company, the ¡®Trump Organization,¡¯ have been sued by New York state Attorney General Letitia James on Wednesday (Sept 21st 2022) following a civil investigation into his business practices.

The civil lawsuit filed by New York¡¯s attorney general came amid the FBI investigating Trump¡¯s holding of sensitive government documents at his Mar-a-Lago estate in Florida, and a special grand jury in Georgia considering whether he and others attempted to influence state election officials after his defeat there by Joe Biden, as per The Guardian.

Reuters

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Letitia James accused Donald Trump and the company of fraudulently misstating the values of numerous properties to obtain favourable loans and tax benefits. The company manages hotels, golf courses and real estate around the world.

In one example, New York state Attorney General James said that the Trump Organization valued its Seven Springs estate in New York's Westchester County at up to $291 million based on the claim that the company had won approvals to build seven mansions on the property. James called that claim a "fiction," noting that local authorities limited how the property could be developed, as per Reuters.

And now, the lawsuit seeks to have Donald Trump and the other defendants give up $250 million that James said was obtained through fraud. As per The Guardian report, James¡¯ office requested that the former president pay at least $250million in penalties.

But that¡¯s not all. New York state Attorney General James is also seeking to ban Trump and three of his children, his sons Donald Trump Jr. and Eric Trump and daughter Ivanka Trump from serving as directors of companies registered in New York, and prevent them and their company from buying commercial real estate or getting bank loans in New York state for five years.

Also, James is also seeking to appoint an independent monitor at the Trump Organization to oversee valuations and disclosures to lenders, among other aspects of its business, for five years. Amidst the allegations, a lawyer for Trump reportedly called the allegations "meritless".

Donald Trump¡¯s Response To The Lawsuit

Following a news conference by James on Wednesday, Donald Trump in a social media post called the lawsuit "another Witch Hunt" and launched a personal attack on her integrity.

"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!" Trump wrote, as per Reuters.

AP

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Warning By The Attorney General

New York state Attorney General James acknowledged at a news conference that amidst this lawsuit, Donald Trump, who now lives in Florida, could try to move his company or borrow elsewhere.

The company's portfolio in New York state includes 14 residential properties, three commercial properties and two golf courses as well as Seven Springs, according to its website.

Trump, who is reportedly considering running again for the US President in 2024, is certain to contest the litigation. The investigation focused on the company's activities before Trump became US President in 2017.

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