Letitia James' 'Major Announcement' Prompts Trump Fraud Lawsuit Speculation

New York Attorney General Letitia James announced she will make a "major announcement" on Wednesday morning, prompting speculation she is due to give an update on her investigation into Donald Trump's business affairs.

James issued a media alert stating she will hold a press conference at 10:30 a.m. without providing further details.

The teasing of the "major announcement" has led to many people predicting that James will reveal new details on her long-running civil probe into alleged tax fraud at The Trump Organization, or launch a civil suit against the former president.

James' office is looking at allegations The Trump Organization exaggerated the value of a number of assets and properties to obtain better loans and other financial benefits.

 Letitia James and Donald Trump
In this combination image, 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 and Donald Trump speaks at a Save America Rally to support Republican candidates running for state and federal offices in the state at the Covelli Centre on September 17, 2022 in Youngstown, Ohio. Getty

The former president and three of his children, Donald Trump Jr., Ivanka Trump and Eric Trump, were ordered to testify as part of the probe. However, Donald and Eric Trump both invoked the Fifth Amendment right against self incrimination hundreds of times while answering questions in August 2022 and October 2020 respectively.

Donald Trump has frequently denied any wrongdoing, calling the investigation into his businesses a "witch hunt," and accusing James, who is Black, of being "racist" towards him.

There is speculation that the announcement from James will be related to recent reports that the New York attorney general's office rejected Trump's lawyer's offer of a settlement with regards to the investigation, and James is preparing to launch a lawsuit alleging fraud against the former president.

The New York Times reported last week that James' office is also considering suing at least one of Trump's three children, who have all worked at The Trump Organization.

Discussing the announcement from James, Harry Litman, legal affairs correspondent for the LA Times tweeted: "Trump tried to settle a civil case and James rebuffed, so that seems the most likely; and it could well include the Trump kids. Plus possibility it's coupled with a criminal referral to the NY AG. He's taking some serious lumps already."

Speaking to MSNBC, Politico's senior legal affairs reporter Josh Gerstein also suggested James' announcement will be a civil case on behalf of New York against The Trump Organization.

"She doesn't have a lot of criminal jurisdiction. So it sounds most likely like this is the long advertised massive civil suit over tax fraud, insurance fraud and similar issues that she has been advertising for some time," Gerstein said.

Discussing why a civil suit from James' office could be the "most important legal challenge Trump faces" author Kurt Eichenwald tweeted: "Bank loans would dry up. Liquidity of company would dry up. Whole firm could collapse. Trump would lose everything. And even as president, he could do nothing to stop it."

The Trump Organization has been contacted for comment.