Donald Trump, his children, and his central business, the Trump Organization, have engaged in “staggering” fraud by overvaluing their assets to secure loans, and then deflating their worth to the IRS to avoid taxes, says New York Attorney General Leticia James. “The number of grossly inflated asset values is staggering, affecting most if not all of the real estate holdings in any given year,” James said in a press conference last week, announcing the case and its 220-page lawsuit says The New York Times.

• On his social media platform Truth Social, the former president lashed out at the charges, saying it's “another Witch Hunt by a racist Attorney General, Letitia James,” before adding, “she is a fraud who campaigned on a 'get Trump' platform.”

• Beyond the state's case, James also noted that Trump “plausibly” violated federal law, and has referred the case to the federal prosecutor in Manhattan.

• Should her case succeed, the Trumps will be permanently banned from operating a business in the state.

Understanding the Breadth

As The Times details, James's 3-year investigation into Trump and his organization included “​​interviews with over 65 witnesses; millions of documents; a complaint more than 200 pages long, with examples from more than 23 assets. Her office found over 200 false valuations, she said, calling it evidence of a scheme that she characterized as ‘astounding.’”

The Verdict

Trump is no stranger to lawsuits of all shapes and sizes. The question is how political will this case become, and can he figure out some legal maneuvering to avoid facing consequences?