New York AG is 'considering suing at least one of Trump’s adult children' in fraud probe: NYT
Ivanka, Eric and Donald Trump Jr. -- Trump campaign

New York Attorney General Letitia James has rejected former President Donald Trump's settlement offer -- and is now reportedly has one of Trump's children in her crosshairs.

The New York Times reports that James' rejection of Trump's settlement offer is "setting the stage for a lawsuit that would accuse Mr. Trump of fraud," and sources tell the publication that James "is also considering suing at least one of Mr. Trump’s adult children" as part of the case.

While it's not known which Trump child would be the target of the lawsuit, the Times notes that Donald Trump Jr., Eric Trump, and Ivanka Trump have all served as executives at the Trump Organization.

James' probe is focused on whether the Trump Organization systematically manipulated the value of assets to artificially lower tax bills.

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"A lawsuit from Ms. James would supercharge their drawn-out battle, offering her an opportunity to deliver a significant blow to the former president and his business, which she vowed before taking office to 'vigorously investigate,'" writes the Times. "If the case goes to trial and Mr. Trump loses, a judge could impose financial penalties and restrict the former president’s business operations in New York -- all potentially in the midst of a 2024 presidential campaign that he is expected to join."

Trump himself testified before a grand jury in the probe earlier this year, and he invoked his Fifth Amendment right against self-incrimination hundreds of times.