NY AG seeks $20K legal sanctions against Trump and family for ‘frivolous conduct’ in $250M fraud suit

New York Attorney General Letitia James filed a motion Tuesday asking a judge to impose legal sanctions on former President Donald Trump, his children and his legal team for “frivolous conduct” in her $250 million fraud lawsuit against him and his company.

James argued Trump, 77, and the other defendants should collectively be forced to pay $10,000, and their counsel an additional $10,000, for repeatedly using legal arguments that were already thrown out on several occasions by the judge overseeing the case, according to court documents.

“The Court has the discretion to ‘impose financial sanctions upon any party or attorney in a civil action or proceeding who engages in frivolous conduct,’ and may impose sanctions against both,” the AG’s office argued in the Manhattan Supreme Court filing from Tuesday.

“Here, the lack of legal bases for Defendants’ standing, capacity, disclaimer, and disgorgement arguments should have been readily apparently to Defendants and their counsel from the prior rulings of this Court and the First Department,” the motion continued. “Under these circumstances, the Court should impose sanctions against Defendants and their counsel.”

Trump argued in October 2022 that the AG’s office didn’t have a right to bring the sprawling lawsuit against him, his company the Trump Organization and kids Eric and Donald Trump Jr. – but that motion to dismiss the case was struck down by Manhattan Supreme Court Justice Arthur Engoron.

Engoron rejected a second motion to dismiss from November 2022 that used the same three arguments, finding they were “borderline frivolous even the first time defendants made them,” and added Trump’s “sophisticated defense counsel should have known better,” the AG argued.

The judge also warned Trump’s team could face sanctions when rejecting the second motion to dismiss, but did not impose any at the time.

The AG’s office said those same arguments were still used again by Trump’s team in filings on at least three other occasions on February 7, August 4 and September 1 of this year. The most recent two motions have yet to be ruled on.

James’ suit staggering 220-page suit from September 2022 claims the ex-president “grossly” inflated his net worth by billions to cheat lenders with misleading financial statements.

The lawsuit seeks to halt Trump’s ability to run businesses in New York and prohibit him and his team from buying commercial property for several years.

“Donald Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself, and cheat the system, thereby cheating all of us,” James, a Democrat, said at a news conference at the time.

“Claiming you have money that you do not have does not amount to the art of the deal, it’s the art of the steal,” she said, referring to Trump’s 1987 book.

James’ office — which investigated the Trump family for three years — said they’ve uncovered possible criminal violations, including of falsifying business records, insurance fraud, issuing false financial statement, conspiracy and bank fraud.

Additional reporting by Priscilla DeGregory.