NY Attorney General James says Donald Trump dodging $250M lawsuit, formed new company in Delaware to evade responsibility

New York Daily News, The (NY)

Former President Donald Trump and his son Eric Trump are trying to dodge a $250 million civil action lawsuit brought by New York Attorney General Letitia James, according to a Thursday filing that claims they’ve refused service for almost a month.

The allegation was included in a legal filing in State Supreme Court in Manhattan. It also accuses Donald Trump’s family business of moving to transfer its assets out-of-state to evade responsibility.

“Beyond just the continuation of its prior fraud, the Trump Organization now appears to be taking steps to restructure its business to avoid existing responsibilities under New York law,” reads the filing by James’ office.

New York sued the Trump Organization on Sept. 21 following a three-year investigation by the attorney general into its business habits. James’ sweeping lawsuit claims Trump exaggerated his net worth by billions of dollars and grossly manipulated the value of his company assets to score favorable loans and tax breaks.

In the days ahead of the lawsuit’s filing, the Trump Organization incorporated a new entity in Delaware, named “Trump Organization II,” according to James’ office. Trump’s lawyers would not assure New York authorities that they created it for any reason other than to avoid accountability.

The AG’s office asked Judge Arthur Engoron — who Trump wants removed from the case in place of the court’s commercial division — to block the company from shifting its assets out of New York, barring court approval.

She also wants the judge to fast-track the case to trial, bar the Trump Org from providing banks and lenders with financial statements without including background on their method of determining valuations, and appoint a monitor to babysit that process.

In response, Trump’s lawyer Alina Habba said James’ filing was “nothing more than a thinly-veiled attempt to keep this case with Justice Engoron rather than have it transferred to the Commercial Division where it belongs.

“We have repeatedly provided assurance, in writing, that the Trump Organization has no intention of doing anything improper. This is simply another stunt which Ms. James hopes will aid her failing political campaign,” added Habba.

Habba did not respond to a follow-up question asking why Trump had not accepted service of the lawsuit.

A lawyer for Eric Trump did not return a call seeking comment.