New York Seeks Sanctions Over Trump Fraud Denials
New York Attorney General Letitia James is asking a judge to punish Donald Trump, his adult children, the Trump Organization, and their lawyers for what her office says was a bad-faith response in the state’s civil fraud case against the family business. The filing, made on January 31, 2023, says the defendants’ answer to the lawsuit included denials that conflicted with earlier positions and repeated arguments the court had already rejected.
The motion asks Justice Arthur Engoron to impose sanctions after the attorney general’s office said the defendants denied facts they had already admitted in other proceedings and relied on defenses the court had already found weak. A senior lawyer in James’ office, Kevin Wallace, argued that the answer went beyond ordinary advocacy and crossed into conduct that could justify punishment under court rules.
The fraud case itself alleges that Trump and the Trump Organization inflated the value of golf courses, office towers and other assets to secure better terms from lenders, insurers and business partners. At the time of the sanctions request, Engoron had already denied Trump’s effort to dismiss the case and had described some defense arguments as frivolous, but the broader merits rulings in the case had not yet been issued.
Trump’s lawyers have repeatedly denied wrongdoing and argued that the case is politically driven. The sanctions request adds another layer to a lawsuit that already threatens major financial penalties and other restrictions on the Trump business in New York. It also keeps pressure on a defense team that is trying to fight the case while avoiding language the state says contradicts the record already in front of the court.
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