New York Attorney General Sues Ex-President Donald Trump, Three Children Over Business 'Fraud'

Donald Trump's three eldest children, Donald Jr, Ivanka and Eric Trump, were also named in the lawsuit.

Former US President Donald Trump and daughter Ivanka

New York's attorney general Letitia James filed a lawsuit on Wednesday against former US President Donald Trump, three of his children and the Trump Organisation in an alleged business fraud case, AP reported. The attorney general has alleged business fraud involving some of the assets owned by Trump like properties in Manhattan, Chicago and Washington DC.

Besides Trump, the suit names the Trump Organisation and three of the former president's children -- Donald Trump Jr, Ivanka Trump and Eric Trump -- who are senior executives at the company.

Allen Weisselberg, former CFO at the Trump Organisation, and Jeff McConney, another longtime company executive, were also named in the lawsuit.

The development comes following a three-year probe by the New York attorney general into dealings by the former president and his family.

In the more than 200-page lawsuit, AG James alleged that the Trump Organisation deceived lenders, insurers and tax authorities by inflating the value of its properties using misleading appraisals.

"These acts of fraud and misrepresentation were similar in nature, were committed by upper management at the Trump Organisation as part of a common endeavor for each annual statement, and were approved at the highest levels of the Trump Organization -- including by Trump himself," the lawsuit stated, according to a report in CNN.

In the lawsuit, the attorney general has sought $250 million in allegedly ill-gotten funds and to permanently bar Trump and his three children from serving as the director of a business registered in New York state. 

She has also sought to cancel the Trump Organisation's corporate certificate. If this prayer is granted by the judge, it could lead to the company ceasing operations in New York state.

Announcing the details of the lawsuit at a news conference, the AG said, "Donald Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself, and cheat the system, thereby cheating all of us."

Alina Habba, an attorney for Trump, said the lawsuit was solely focused on advancing the attorney general's political agenda.

"It is abundantly clear that the attorney general's office has exceeded its statutory authority by prying into transactions where absolutely no wrongdoing has taken place. We are confident that our judicial system will not stand for this unchecked abuse of authority, and we look forward to defending our client against each and every one of the attorney general's meritless claims," AP quoted Habba as saying.