Will NY Judge Gut Trump's Fraud Case? #trump #fraud #statuteoflimitations #personalinjuryattorneys

Los Angeles and Texas Trial lawyer, Michael Ehline is covering the statute of limitations and potential malpractice claims against Trump's lawyers in the NY civil case threatening to destroy Donald Trump New York Attorney General Letitia James Files $250M Lawsuit Against Trump for Alleged FraudShow more

In a significant legal development, New York State Attorney General Letitia James has filed a $250 million lawsuit against former President Donald Trump and his firm for alleged persistent and repeated business fraud. The suit, which accuses the Trumps of engaging in numerous acts of fraud and misrepresentations over 20 years, claims that they grossly inflated the former president's net worth by billions of dollars. This alleged misconduct is said to have cheated lenders and others through false and misleading financial statements.

The civil lawsuit was filed in State Supreme Court in Manhattan and seeks a $250 million judgment, along with a prohibition on any of the Trumps leading a company in the state of New York. Attorney General James stated during a press conference that her office found that Mr. Trump, his children, and the corporation used more than 200 false asset valuations over a ten-year period.

Among the allegations, the suit contends that the valuation of Trump's Florida estate and golf resort, Mar-a-Lago, was inflated to as much as $739 million when it should have been valued at approximately $75 million. This higher valuation was reportedly based on the false premise that the property could be developed for residential use, despite Trump signing deeds that restricted changes to the property.

James is referring her findings to federal prosecutors in Manhattan, raising the possibility of a criminal investigation into bank fraud.

The lawsuit alleges that the Trumps used persistent and repeated business fraud to convince banks to lend money to the Trump Organization on more favorable terms than warranted. It names the former president, three of his adult children, the company, and two of its executives, Allan Weisselberg and Jeff McConney.

The suit claims that Mr. Trump expressed a desire for his net worth to increase, a desire carried out year after year through fraudulent preparation of financial statements.

Weisselberg, who pleaded guilty to unrelated criminal charges of tax evasion, is part of an ongoing parallel investigation by the Manhattan district attorney's office. Manhattan District Attorney Alvin Bragg confirmed that their criminal investigation concerning former President Donald J. Trump, the Trump Organization, and its leadership is active and ongoing.

Former President Trump has denied wrongdoing and characterized Attorney General James' investigation as a politically motivated "witch hunt." Attorney James rejected a settlement offer from the Trump Organization last month.

Trump's attorney, Alina Habba, stated that the lawsuit is focused on advancing the Attorney General's political agenda and that it exceeds its statutory authority. A spokesperson for the Trump Organization accused Attorney General James of conducting unethical political harassment.

Despite the legal battle, Attorney General James emphasized that white-collar financial crime is not a victimless crime, and everyday people cannot lie to a bank.

The lawsuit details several instances in which Trump invoked his Fifth Amendment right against self-incrimination during a deposition last month. In a civil trial, jurors could interpret such invocations negatively.

The investigation began in March 2019, following Michael Cohen's testimony before Congress. Cohen alleged that Trump's annual financial statements inflated asset values for favorable loans and insurance coverage while deflating asset values to reduce real estate taxes.

Trump Tower, for instance, was valued at $327 million, a figure contested by James. The lawsuit also highlights inflated valuations for Trump Park Avenue's rent-stabilized apartments and Trump Turnberry, a golf club in Scotland.

Attorney General James asserts that the examples laid out in the lawsuit barely scratch the surface, characterizing Trump's actions as "the art of the steal." The suit underscores the considerable financial benefit Mr. Trump and the Trump Organization allegedly derived through these fraudulent submissions. Source: www.michaelehline.com