The Daily Fuckup

On Sept. 21, 2022, New York Attorney General Letitia James filed a civil fraud lawsuit accusing Donald Trump, the Trump Organization and three of his adult children — Donald Trump Jr., Ivanka Trump and Eric Trump — of a years-long scheme to inflate asset values and present misleading financial statements. The complaint says the numbers were used to secure loans, insurance and other financial benefits on better terms than the defendants could have obtained with accurate information.

The filing says the alleged misstatements were not isolated errors but repeated across annual statements of financial condition over many years. According to the attorney general’s office, Trump and others at the company altered assumptions, used different valuation methods from one property to another, and ignored limits that would have reduced reported values. The complaint also says the statements were presented as reliable financial records even though they contained false or misleading figures.

James is seeking major monetary relief, including at least $250 million in disgorgement, along with court orders that would limit the defendants’ ability to run New York businesses. The complaint asks the court to permanently bar Trump, Donald Trump Jr., Ivanka Trump and Eric Trump from serving as officers or directors of any New York corporation or similar entity. It also seeks other injunctive relief tied to the Trump Organization’s business activity in the state.

The case matters because it puts Trump’s long-running claim to business genius under direct legal scrutiny. The lawsuit says the financial statements that helped build that image were also the tools used to persuade lenders and insurers. If the state proves its case, the fallout could go beyond a money judgment and reach the way Trump and his family can operate in New York’s business world.