NEW YORK – New York Attorney General Letitia James on Thursday asked a judge to impose measures to prevent former US President Donald Trump and his company from continuing their alleged fraudulent activities and to prevent them from transferring assets to a new company, fearing that it will use it to evade a possible punishment.
James sued the tycoon and the Trump Organization last month for fraudulently obtaining loans, insurance benefits and paying lower taxes than he was entitled to, a case that is the result of a lengthy investigation and is now in awaiting trial.
According to the prosecutor, on the same day this lawsuit was filed, the former president’s company embarked on a restructuring by which it appears to be trying to “evade the scope” of that action by the authorities.
Among other things, the Trump Organization has registered a new entity in the state of Delaware called Trump Organization II and the company has so far refused to give guarantees that it will not move assets out of New York to escape possible sanctions.
James wants the judge in the case, Arthur Engoron, to rule that the company cannot transfer assets to any other entity without prior authorization from a court.
Furthermore, the New York prosecutor accuses the Trump Organization of “continuing the same fraudulent practices” of which it is accused.
“Today we are looking for an immediate halt to these actions because Trump shouldn’t be able to play by different rules,” James said in a statement.
Specifically, the Prosecutor wants the judge to ban the Trump Organization from presenting financial statements to banks and insurance companies that do not adequately report the techniques used to evaluate their assets.
According to James’s lawsuit, for years the company has pledged to “illegally inflate and deflate” its assets to obtain loans on more favorable terms or to obtain more coverage from insurers at lower rates.
“There can’t be different standards for different people,” said Letitia James.
The Prosecutor’s Office today asked the judge to appoint an independent supervisor to investigate all reports the Trump Organization makes to lenders and insurers pending trial.
“There is every reason to believe that defendants will continue similar fraudulent conduct during the trial unless they are overseen by an order from this court,” James’s office said in its letter to Engoron.
