Oregon attorney general leads 17-state coalition to support NY fraud case

OREGON (KTVZ) -- Oregon Attorney General Dan Rayfield led a 17-state coalition Friday in filing a friend-of-the-court brief supporting New York's civil fraud case against Donald Trump and his business associates.

The brief defends the authority of state attorneys general to enforce fraud laws, arguing that business misrepresentation harms the public and competitive markets even when victimized financial institutions are large or do not complain.

The legal filing relates to People v. Trump, a lawsuit brought by New York Attorney General Letitia James under state business fraud laws. The case names Donald Trump, Eric Trump, Allen Weisselberg and Jeffrey McConney as defendants, alleging they inflated asset valuations to obtain preferable terms on loans and insurance policies.

The matter is currently pending before the New York Court of Appeals. The defendants are seeking a ruling that New York state had no authority to intervene because the involved banks were sophisticated entities that did not initiate legal complaints.

The coalition's brief contends that restricting state oversight based on a victim's financial size would weaken enforcement powers for attorneys general nationwide. According to the filing, state fraud laws exist to protect honest competitors, bank depositors and the general market from unfair practices, regardless of whether individual institutional victims choose to take legal action.

Rayfield emphasized that government enforcement is necessary to preserve public trust in commercial markets. “When someone misleads a bank to get a better deal, everyone else who plays by the rules pays for it — the competitor who told the truth and the workers and depositors who count on that bank staying healthy,” Rayfield said. “Being rich and well-connected doesn't buy you a different set of rules. Our job is to protect the public, even when the party on the other side of the deal is a big bank who would rather sweep the fraud under the rug.”

The amicus brief was spearheaded by Oregon and joined by attorneys general from 16 other states. The participating coalition includes Arizona, Calif., Conn., Del., Hawaiʻi, Ill., Maine, Mass., Mich., Minn., Nev., N.J., N.M., Vt., Va. and Washington.