• Former President Donald Trump bashed the NY AG who filed a suit against him and his family business.

• His remarks came at a Friday rally where he also lifted up his children, who were named in the suit.

• Trump called Letitia James “racist” and said her actions were “gross prosecutorial misconduct.”

At a Friday rally in Wilmington, North Carolina, former President Donald Trump took the time to lift up three of his children in response to a new fraud suit filed against him.

During the rally in support of GOP Senate candidate Rep. Ted Budd, Trump said he and his fellow MAGA Republicans are not “terrorists” and claimed President Joe Biden “is cognitively impaired and in no condition to lead our country, which may very well end up in World War III.”

But Trump spent more time berating New York Attorney General Letitia James, who has filed a massive fraud lawsuit against the Trump Organization.

The James’ office said “Trump falsely inflated his net worth by billions of dollars to further enrich himself and cheat the system” and “repeatedly and persistently manipulated the value of assets to induce banks to lend money to the Trump Organization.”

The suit follows a three-year probe into Trump and his business dealings.

Trump on Friday called James “racist” — an accusation he’s also made on multiple other occasions — and referred to her actions as “gross prosecutorial misconduct.”

The attorney general is accusing him, his children, and the Trump Organization of years of financial fraud. The case is just one of many legal problems Trump faces, including the investigation into mishandled classified documents at Mar-a-Lago and the probe into the January 6 insurrection.

At the rally, Trump defended his children who were named in the suit, apparently reading off a teleprompter: “Ivanka, Ivanka is a very good person. Don Jr., he’s a good person. Eric. Eric. These are good people.”

He added: “This crazy radical leftist nutjob James should be going after the killers, the gangbangers, the drug dealers.”

James’ office did not immediately respond to Insider’s request for comment.

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