New York AG asks judge to bar Trump from moving assets to new company he formed amid fraud lawsuit

Former U.S. President Donald Trump speaks during a rally in Warren, Michigan, U.S., October 1, 2022. 

The New York Attorney General's Office asked a judge to bar former President Donald Trump from moving his businesses to a new holding company because of a pending civil lawsuit.

The AG's office is concerned that they won't be able to get Trump to pay a fine if he loses the case because of his assets being held by a company that is not named as a defendants in the case.

The day after the Attorney General filed her lawsuit, the Trump Organization registered a new company in New York. The new firm is located in Delaware.

James, who on Thursday accused Trump and the Trump Organization of engaging in an "ongoing fraudulent scheme," wants Trump blocked from moving the Trump Organization of moving any materials assets to another entity.

The Trump Organization appears to be taking steps to restructure its business to avoid responsibilities under New York law.

James asked the judge to order Trump not to use a new statement of his business' financial condition in dealings with lenders or insurers without adequately disclosing the assumptions and methods used to calculate the valuations.

James is concerned that Trump's latest statement of financial condition, which includes claims of valuations for a range of real estate, would rely on the same process that she has alleged are fraudulent.

The attorney general wants to appoint an independent monitor who would oversee the submission of Trump's financial statements to any accounting firm, as well as their disclosure to the lender and insurer.

James' office said in the filing that the defendants will engage in similar fraudulent conduct unless checked by the court.

James asked for permission to serve her lawsuit electronically on Trump and his son due to the fact that both of them and their lawyers have refused to accept service of the complaint.

New York Attorney General Letitia James speaks during a press conference at the office of the Attorney General on July 13, 2022 in New York City.

Donald Trump and the Trump Organization engaged in significant fraud to inflate his personal net worth by billions of dollars to cheat the system.

James said that Donald Trump and the Trump Organization have continued their fraudulent practices since they were sued.

We want an immediate stop to these actions because Mr. Trump shouldn't be allowed to play by different rules.

James is accusing Trump of overstating his net worth by billions of dollars in 11 previous annual statements that were provided to banks, insurance companies and the IRS.

James wants the Trump companies to be barred from doing business in New York state for the rest of their lives.

When she announced the suit, she revealed that she had asked federal prosecutors and the IRS to investigate Trump for possible federal crimes, saying her office had found evidence of possible bank fraud and the crime of making false financial statements.

The lawsuit was called baseless by Trump.

James' investigation and suit are politically motivated according to his lawyers.

When he was president, James promised to investigate Trump. There is a chance that Trump will run for president again in four years.

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