AP

NY seeks court oversight after Trump Org.’s concerning moves

Oct 12, 2022, 9:49 PM | Updated: Oct 13, 2022, 3:23 pm

FILE - New York Attorney General Letitia James speaks during a press conference on Sept. 21, 2022, ...

FILE - New York Attorney General Letitia James speaks during a press conference on Sept. 21, 2022, in New York. James has asked a judge Thursday, Oct. 13, to bar the Trump Organization from selling or transferring assets without court approval while a legal battle plays out over her fraud allegations against the former president’s company. (AP Photo/Brittainy Newman, File)

(AP Photo/Brittainy Newman, File)

NEW YORK (AP) — New York’s attorney general has asked a judge to bar Donald Trump’s company from selling or transferring assets without court approval, saying it had engaged in a devious attempt to duck potential penalties in her fraud lawsuit against the former president.

In court papers filed Thursday, Attorney General Letitia James’ office said that shortly before she filed the lawsuit last month, Trump’s company incorporated a new entity in Delaware named Trump Organization LLC — almost identical to the original company’s name.

On the day the lawsuit became public, the Trump Organization registered the new Delaware company in New York as “Trump Organization II LLC.”

“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,” lawyers for the attorney general’s office said.

Manhattan Judge Arthur Engoron scheduled an Oct. 31 hearing on James’ request for an independent monitor to oversee the Trump Organization’s activities.

James’ office said it wants the case to go to trial in October 2023 — almost a year before the next presidential election. Trump has been laying groundwork for a potential comeback campaign.

Trump’s lawyer, Alina Habba, said the idea of court oversight “has no merit and is dead on arrival.”

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

James, a Democrat, is running for re-election as attorney general against a little-known Republican attorney from Queens, Michael Henry. Trump, a Republican, has repeatedly sparred with James and contends that her lawsuit is part of a politically motivated “witch hunt.”

In the lawsuit, filed last month, James’ office accused Trump of habitually misleading banks and others about how much assets like his golf courses and other real estate were worth. In the latest filing, James said the organization continued to use improper methods of creating valuations.

Trump’s attorney has asked that the case be transferred from Engoron, who has repeatedly ruled against Trump in related subpoena disputes, to the court’s Commercial Division, which is set up to handle complex corporate litigation.

In a letter Thursday to the court’s administrative judge, Habba asked for an expedited decision on her transfer request. Habba argued that Thursday’s filing was “an obvious attempt” by the attorney general’s office to get Engoron involved in the case before a decision is made.

The lawsuit also named his three eldest children, Donald Jr., Ivanka and Eric Trump, as defendants, along with two longtime Trump Organization executives.

In her motion for a preliminary injunction, James’ office said it had raised concerns with the Trump legal team about assets being moved out of state and that it asked for assurances that there would be no changes. If changes were to be made, James’ office said it wanted reasonable notice before hand.

Trump’s lawyers “did offer to provide assurances and advance notice,” James’ said, but “no concrete mechanism to either effectuate or enforce that offer.”

James’ office also disclosed that the former president and Eric Trump have yet to accept service of the lawsuit and sought permission to serve them electronically instead. A lawyer for the office, Colleen Faherty, noted that serving Trump with paper copies is “impracticable given the security measures taken for his protection as the former President of the United States.”

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

moore redmond washington...

Mark Sherman, The Associated Press

The Supreme Court upholds a tax on foreign income over a challenge backed by business interests

The court ruled in the case of Charles and Kathleen Moore, of Redmond, Washington after they challenged a $15,000 tax bill.

16 minutes ago

Image:The New York Giants' Willie Mays poses for a photo during baseball spring training in 1972. M...

Associated Press

Willie Mays, Giants’ electrifying ‘Say Hey Kid,’ dies at 93

Willie Mays, whose singular combination of talent, drive and exuberance made him one of baseball’s greatest players, has died. He was 93.

2 days ago

Image: This photo provided by the Washington Department of Ecology shows a derailed BNSF train on t...

Associated Press

Judge orders BNSF to pay Washington tribe nearly $400M for trespassing with oil trains

BNSF Railway must pay the sum to a Native American tribe in Washington after it ran 100-car trains with crude oil on the tribe's reservation.

3 days ago

Photo: In this photo provided by Tieanna Joseph Cade, an amusement park ride is shown stuck with 30...

Associated Press

Crews rescue 28 people trapped upside down high on Oregon amusement park ride

Emergency crews in Oregon rescued 28 people after they were stuck dangling upside down high on a ride at a century-old amusement park.

3 days ago

juneteenth shooting texas...

Associated Press

2 killed and 6 wounded in shooting during a Juneteenth celebration in a Texas park

A shooting in a Texas park left two people dead and six wounded, including two children, on Saturday, authorities said.

4 days ago

Photo: Israeli soldiers drive a tank near the Israeli-Gaza border, in southern Israel, Wednesday, J...

Jack Jeffery, The Associated Press

8 Israeli soldiers killed in southern Gaza in deadliest attack on Israeli forces in months

An explosion in Gaza killed eight Israeli soldiers, the military said Saturday, making it the deadliest attack on Israeli forces in months.

5 days ago

NY seeks court oversight after Trump Org.’s concerning moves