Alleging ‘staggering’ fraud, NY attorney general lawsuit could have many consequences for Trump
Last year, New York attorney general Letitia James accused Donald Trump of carrying out a “staggering” level of fraud by inflating his net worth to get better loan conditions.
Take for example Mar-a-Lago, his south Florida resort. The property is worth about $75m, but valued as high as $739m, the suit said. Or 40 Wall Street, a commercial property in New York City: James alleged Trump had claimed it was worth as much as $530m, even though commercial appraisals found it would, at best, go for $220m.
James also accused him of inflating the square footage on his Trump Tower in Manhattan, calling it, “intentional and deliberate fraud” and “not a mistake”.
If a judge finds in her favor, it could force Trump to pay a potentially large judgment, and bar him and three of his children from serving as executives in New York state, or from taking out loans or purchasing properties for five years. But perhaps more worrying for the former president was James’s announcement that she had forwarded her findings to federal prosecutors, though they have not yet said if they will pursue criminal charges based on their work.
Here’s our full report from last year, when the suit was filed:
Key events
Conservative supreme court justice Thomas discloses billionaire-funded travel – report
Conservative supreme court justice Clarence Thomas has acknowledged trips paid for by Republican megadonor Harlan Crow in a disclosure released today after a delay, CNN reports.
Reports from ProPublica and other media outlets including the Guardian released earlier this year found Thomas, the court’s longest-serving conservative justice, had questionable entanglements with parties interested in its cases, including by taking luxury vacations with Crow.
In the disclosure, Thomas reports Crow paid for him to fly by private jet for a speech in Texas and a vacation in New York last year, and said one of the trips was necessary because of “increased security risk” caused by the leak of the court’s decision overturning Roe v Wade.
Thomas also said he “inadvertently omitted” information from previous disclosures and amended them in today’s filing to acknowledge a 2014 real estate deal with Crow.
The yearly report was due in May, but Thomas requested, and received, an extension to submit his filing later.
Here’s more from the Guardian’s Martin Pengelly on Mitch McConnell’s health scare yesterday, the second to occur in public in as many months:
The Republican leader in the US Senate, Mitch McConnell, experienced another public health scare on Wednesday when he appeared to freeze for more than 30 seconds while speaking to reporters in his home state, Kentucky.
McConnell, 81, was eventually escorted away by staff, footage from an NBC News affiliate showed.
Asked for his thoughts about running for re-election in 2026, McConnell laughed and said: “Oh, that’s a … ” He then appeared to freeze.
Coming to his side, an aide said: “Did you hear the question, senator? Running for re-election in 2026?”
McConnell did not answer. The aide said, “All right, I’m sorry you all, we’re gonna need a minute.” Another aide exchanged quiet words with the senator, who said: “OK.” The first aide asked for another question, saying: “Please speak up.”
The aide repeated questions loudly into McConnell’s ear. He gave quiet, halting answers.
Told, “It’s a question about Trump,” McConnell said he would not comment on the presidential race “on the Democratic side or the Republican side”.
The two aides then escorted McConnell away.
Hours after top Senate Republican Mitch McConnell froze up while speaking to reporters, he met with a Republican running for Senate in Indiana yesterday:
Banks, who currently represents a district in the state in the House of Representatives, is seen as the frontrunner for the Republican Senate nomination in a state that has lately voted overwhelmingly for the GOP.
Proud Boy faces potentially longest sentence of January 6 cases in sentencing today
Joseph Biggs, a self-described organizer for the Proud Boys militia group who was convicted of seditious conspiracy for his actions on January 6, will be sentenced in federal court today.
Prosecutors are asking the judge to impose a 33-year jail sentence, which would be the longest doled out to any defendants facing charges over the violent attack on the Capitol. Biggs’s sentencing will be the first in a series to take place over the coming days of five Proud Boys defendants, including Enrique Tarrio, the group’s former leader. He will be sentenced on Tuesday.
Alleging ‘staggering’ fraud, NY attorney general lawsuit could have many consequences for Trump
Last year, New York attorney general Letitia James accused Donald Trump of carrying out a “staggering” level of fraud by inflating his net worth to get better loan conditions.
Take for example Mar-a-Lago, his south Florida resort. The property is worth about $75m, but valued as high as $739m, the suit said. Or 40 Wall Street, a commercial property in New York City: James alleged Trump had claimed it was worth as much as $530m, even though commercial appraisals found it would, at best, go for $220m.
James also accused him of inflating the square footage on his Trump Tower in Manhattan, calling it, “intentional and deliberate fraud” and “not a mistake”.
If a judge finds in her favor, it could force Trump to pay a potentially large judgment, and bar him and three of his children from serving as executives in New York state, or from taking out loans or purchasing properties for five years. But perhaps more worrying for the former president was James’s announcement that she had forwarded her findings to federal prosecutors, though they have not yet said if they will pursue criminal charges based on their work.
Here’s our full report from last year, when the suit was filed:
Trump accused of inflating net worth by $2b as he argues he averted ‘nuclear holocaust’
Good morning, US politics blog readers. Besides the four criminal indictments filed against him and others since the start of the year, Donald Trump is also being sued by New York attorney general Letitia James, who alleges he inflated his net worth to secure more favorable terms on loans. Yesterday, a transcript of a deposition from the former president was made public, and reveals just how much James believe he overstated his assets: by as much as $2.2b in some years. The document also shows Trump making grandiose and rambling assertions that won’t be a surprise to anyone who lived through his presidency. He, for instance, asserts that his diplomatic outreach to North Korea averted a “nuclear holocaust”.
Unlike the criminal cases against him, there’s no jail time threatened by this case, but in a best-case scenario for James, a judge could order Trump to pay an expensive judgment. The lawsuit is set to go to trial in October, but the New York prosecutor is hoping a judge will opt to resolve all or part of the case in a hearing set for 22 September.
Here’s what else we’re watching today:
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Questions are swirling about Mitch McConnell’s health after the 81-year-old top Senate Republican froze up during a press conference yesterday, the second time something like this has happened in as many months.
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Hurricane Idalia continues to churn through the southeastern United States, and could potentially already be the costliest climate disaster to strike the country this year.
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Rudy Giuliani yesterday was found liable for defaming two Georgia election workers and ordered to pay what could be an expensive judgment.