The state attorney general office’s probe into the Trump Organization will also continue as an ongoing civil investigation

The attorney general office’s investigation into the Trump Organization, which has been underway since 2019, will also continue as a civil probe, but the office recently informed Trump Organization officials of the criminal component.

In an increasingly serious sign for former President Donald Trump, the attorney general’s office is working with the Manhattan district attorney’s office, whose wide-sweeping probe into the Trump Organization has looked into whether the company misled lenders and insurance companies about the value of properties and whether it paid the appropriate taxes. James’ notification to the organization brings a new level of potential legal risk to the former President, with the attorney general now able to seek criminal penalties as part of the probe.

Manhattan District Attorney Cy Vance’s office is examining millions of pages of documents that include Trump’s tax returns.

A person familiar with the investigation said a couple of investigators with the New York attorney general’s office, who are steeped in knowledge about the Trump Organization, have joined the district attorney’s team. A different person familiar with the matter said the New York attorney general is still conducting a civil investigation.

Trump has previously called the New York attorney general’s investigation politically motivated.

For the past two years, James’ office looked into matters including whether or not it improperly inflated assets on financial statements to secure loans and obtain economic and tax benefits, as well as how Trump Organization employees were compensated.

Trump’s former attorney Michael Cohen testified before Congress in 2019 that Trump’s annual financial statements inflated the value of his assets to secure favorable loans and insurance coverage, but deflated the value of other assets to reduce real estate taxes.

Trump’s longtime tax attorney Sheri Dillon was also deposed but the state says she declined to answer certain questions.

Several Trump Organization properties’ financial dealings are being scrutinized as part of the investigation, including Seven Springs Estate in Westchester County, New York; 40 Wall Street, a building in Lower Manhattan; Trump International Hotel and Tower Chicago; and Trump National Golf Club in Los Angeles.

This story has been updated with additional information Tuesday.