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Penalties being sought in the civil fraud suit brought by the New York state attorney general’s office against Donald Trump and three of his adult children could potentially result in the end of the Trump Organization, his real estate empire, in its current form.
The former US president, as well as Donald Trump Jr, Ivanka Trump and Eric Trump, were named as defendants in a sprawling 214-page complaint filed by New York attorney general Letitia James for allegedly falsely inflating his net worth by billions to enrich himself and secure favorable loans.
“For too long, powerful, wealthy people in this country have operated as if the rules do not apply to them. Donald Trump stands out as among the most egregious examples,” James said in a statement. “Trump thought he could get away with the art of the steal, but today that conduct ends.”
The restrictions being sought by the New York attorney general include permanent bans on Trump and his three children from serving as executives in any company in New York, a move that would tear the Trump Organization away from his personal control.
The other penalties being sought would prevent Trump from attempting to circumvent that principal restriction to establish his business under a different guise: James is also seeking to bar Trump from acquiring commercial real estate and applying for loans in New York for five years.
Trump could also lose two loyal executives named in the suit – Trump Organization’s chief financial officer, Allen Weisselberg, and its controller, Jeffrey McConney – with James asking the New York state supreme court to bar them from serving in top roles of any company in New York.
The New York attorney general may not succeed in securing all the penalties.
