The saga of Donald Trump’s alleged financial chicanery took a dramatic turn today, with New York Attorney General Letitia James upping the ante in her civil fraud lawsuit against the former president and his company. In a new legal filing, James demands a staggering $370 million penalty, a significant increase from the initial $250 million estimate floated in 2022.
James’ accusations center around claims that Trump’s organization systematically inflated the value of its assets for over a decade. This alleged deception, spanning everything from golf courses to skyscrapers, aimed to secure favorable loan terms and insurance rates for the Trump company. The judge overseeing the case has already sided with James on the issue of liability, deeming Trump responsible for the fraudulent practices before the trial even began.
Today’s filing marks a significant escalation in the financial penalties sought by James. The $370 million figure represents a 48% increase over the initial estimate, reflecting the extensive evidence amassed during the lengthy trial. James highlights instances where the Trump Organization allegedly inflated asset values by as much as 300%, particularly focusing on Trump Tower and Mar-a-Lago.
The hefty price tag isn’t merely a punishment, but a strategic move aimed at achieving two goals: disgorgement and deterrence. Disgorgement seeks to claw back ill-gotten gains accrued through fraudulent activity, ensuring the Trump Organization doesn’t profit from its alleged deception. Deterrence, on the other hand, aims to send a strong message to other businesses, discouraging them from engaging in similar financial manipulation.
Unsurprisingly, Trump’s camp wasted no time in denouncing the increased penalty as “prosecutorial misconduct” and a “witch hunt.” He reiterated his claims of innocence and accused James of being politically motivated.
With the judge already finding Trump liable and the closing arguments scheduled for next week, the fate of the lawsuit rests in the jury’s hands. Whether they agree with James’ $370 million demand remains to be seen, but one thing is certain: the financial fallout from Trump’s alleged asset inflation scheme is only beginning to unfold.
