Donald Trump and three of his children are being slapped with a fraud lawsuit after a three-year investigation on the Trump Organization revealed the family's alleged sneaky activities.
The family, and their Trump Organization business, were sued by New York Attorney General Letitia James on Wednesday for using false financial statements, according to a press release.
The lawsuit alleges that the former US President, 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 secure favourable loans and lessen tax obligations.
The lawsuit seeks $250 million in damages from the Trump Organization due to their alleged fraudulent activity.
In a press conference, James announced that she will seek to prevent Trump and his children from purchasing real estate in New York and ban them from applying for loans for the next five years.
In addition to the hefty financial penalty, the lawsuit aims at prevent Donald Trump and his three children from holding positions of power at any New York company and also wants to permanently bar the Trump companies named in the lawsuit from doing business in the state of New York.
Trump may now be subject to further investigation by federal prosecutors and the IRS for possible federal crimes at the request of James.
James alleges that Trump falsely claimed that his Manhattan apartment was over three times its actual size as part of the fraud scheme.
She also alleged that he massively overvalued his Palm Beach property at $739 million when "it should have been valued at about $75 million."
"For too long, powerful, wealthy people in this country have operated as if the rules do not apply to them," said James in a statement.
"Donald Trump stands out as among the most egregious examples of this misconduct. With the help of his children and senior executives at the Trump Organization, Donald Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and cheat the system."
According to the prosecutors, the family participated in several fraudulent activities over a decade, particularly from 2011-2021.