Washington DC - Donald Trump and his legal team have responded after a federal judge uncovered potential tax fraud while monitoring his New York City businesses.

According to The Daily Beast, Trump's attorneys filed a motion on Monday, arguing that a report from Judge Barbara Jones, who was appointed as a monitor to watch over Trump's businesses throughout his New York fraud trial, was a "demonstrable falsehood."

New York Supreme Court Justice Arthur Engoron, who is overseeing Trump's New York fraud case, appointed Jones to make sure assets were not moved or hidden during the trial.

Everything was going well until Jones' most recent report, released last Friday, which alleged Trump lied about a personal loan he made to his companies in an attempt to dodge millions in taxes.

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Trump's attorneys argued in their filing that Jones' assessment is nothing more than "self-serving hyperbole."

They also enlisted their own certified public accountant to review everything, who concluded that "the Monitor did not identify any financial reporting misconduct, suspicious activity, or any suspected or actual fraud."

The former president and his Trump Organization are being sued by New York Attorney General Letitia James for $250 million in damages for allegedly inflating his worth for financial gain.

Trump and his family are also under threat of losing the ability to do business in the state ever again.

Judge Engoron is expected to rule on the case by Wednesday at the latest.