New York AG James Plans to Continue $454 Million Civil Fraud Case Against Trump, Office Confirms
Her office has sent a letter to the attorneys representing Trump, affirming their commitment to continue pursuing the civil case.
The office of New York Attorney General Letitia James has expressed that she will persist with her civil fraud case against President-elect Donald Trump, his sons, and his company, which resulted in a judgment exceeding $450 million earlier this year.
This past year, New York Judge Arthur Engoron mandated Trump to pay $454 million in a civil fraud judgment stemming from James’s lawsuit against him and the Trump Organization. In his ruling, the judge suggested that Trump had defrauded banks, insurers, and investors by purportedly exaggerating his net worth and the value of his properties.
“Your letter provides no justification for this Office to seek to vacate the final judgment or dismiss this action,” she stated in the letter, which was made public online on Tuesday.
Vale further contended that the “ordinary burdens of civil litigation do not obstruct the President’s official duties in a manner that violates the U.S. Constitution” and emphasized that the action initiated by the attorney general’s office is civil in nature, not criminal.
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“The final judgment pertains solely to business actions conducted by entities associated with the Trump Organization and individual defendants acting on its behalf,” Vale noted. “The judgment does not involve any actions related to Mr. Trump’s presidency.”
It also does not touch upon any actions that Mr. Trump may undertake post-inauguration, according to the letter, which pointed out that presidents do not possess “immunity from civil lawsuits stemming from unofficial conduct.”
“Given the ruling in this case, no company will wish to establish operations in New York, and many are already leaving,” his lawyers articulated. “The economic implications of this decision are detrimental for New York.”
The New York Attorney General’s office “has applied the statute in an unprecedented manner,” they remarked.
In September, a panel of the New York Appellate Division court, which is overseeing Trump’s appeal, seemed to display skepticism regarding Engoron’s ruling and James’s case during oral arguments.
“Every case you reference involves harm to consumers, harm to the marketplace,” Appeals Court Judge David Friedman remarked to Vale on Sept. 26.
“We don’t have anything of that nature here,” he noted, indicating that nobody “incurred financial losses.”
The judges also probed into the limitations that apply to the law cited by James in her case, emphasizing that it is typically utilized to target fraudsters who exploit vulnerable consumers.
“How do we establish a boundary or at least set some guidelines?” Justice Peter Moulton inquired at one point.
However, Vale countered, stating that the case is justified because “when risk is introduced into the market, it adversely affects counter-parties and the market overall.” She explained that the statute used in the civil case, known as Executive Law 63(12), broadly targets fraud and illegality, making it suitable for Trump’s circumstances.
As of now, neither Trump nor his team has responded to Vale’s letter. The Epoch Times reached out to his transition team for comments on Tuesday but did not receive any response by publication time.
Reuters contributed to this report.
