'A dark day for them': Why NY lawsuit could have disastrous consequences for the Trumps

During a segment on MSNBC this Wednesday, the panel discussed the filing of a sweeping lawsuit targeting Donald Trump, his three adult children, and his businesses by New York Attorney General Letitia James, alleging that they were involved in an expansive fraud scheme lasting over a decade that Trump used to enrich himself.

James said that with the help of his children and others at the Trump organization, the former president gave fraudulent statements of his net worth "to obtain and satisfy loans, get insurance benefits, and pay lower taxes."

"In short, he lied to gain massive financial benefits for himself."

During an appearance on MSNBC, New York Times reporter Susan Craig said that while she expected this day to come, she's still trying to wrap her head around the potential consequences facing Trump down the line if James' suit is successful. She said that the lawsuit could force Trump to renegotiate crucial loans.

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"This is tough stuff for the Trump Organization," Craig said. "There's no question this is a dark day for them."

MSNBC contributor Chuck Rosenberg said that this day came thanks to good reporting from news journalists.

"Liquidity for the Trump Organization is going to be a huge problem," Rosenberg said. "Liens might be called, it's going to be harder to get additional loans, the value of the properties if the Attorney General has correctly stated them are much, much lower than the Trumps had proclaimed, and so this could lead -- without being apocalyptic here -- to financial ruin for the company."

James' office requested that the former president pay at least $250 million in penalties, and that his family be banned from running businesses in the state.

She also urged that Trump along with his children Donald Trump Jr, Eric Trump and Ivanka Trump be barred from purchasing property in the state for five years.

In addition, James said her office, which lacks the authority to file criminal charges, was making a criminal referral to the US Justice Department based on the three-year investigation.

Watch the full segment below or at this link.

With additional reporting by AFP