Oct. 14 (UPI) — New York Attorney General Letitia James asked the Manhattan Supreme Court on Thursday to prevent former President Donald Trump from moving his businesses to a new holding company he formed while her civil lawsuit against his current organization over widespread fraud allegations moves forward.
James filed a motion with Judge Arthur Engoron to prevent Trump from using a new statement of his business’ financial conditions in dealings with lenders and insurers either to satisfy existing obligations or to obtain new loans or insurance coverage without adequately disclosing the assumptions and methods used to calculate the valuations of assets.
Last month, James filed a civil lawsuit against Trump, three of his children and the Trump Organization alleging an illegal scheme that amassed $250 million by fraudulently overvaluing assets.
The lawsuit seeks to recover $250 million that James said was received through deceptive practices. It also seeks to bar Trump and his children Eric, Ivanka and Donald Trump Jr., from serving as officers or directors in any New York company.
“Our investigation uncovered the fact that Donald Trump and the Trump Organization engaged in significant fraud to inflate his personal net worth by billions of dollars to illegally enrich himself and cheat the system,” James said in a statement.
“Since we filed this sweeping lawsuit last month, Donald Trump and the Trump Organization have continued those same fraudulent practices and taken measures to evade responsibility. Today, we are seeking an immediate stop to these actions because Mr. Trump should not get to play by different rules.”
