ALBANY, N.Y. – A New York state investigation looking into whether the Trump Organization illegally inflated the value of its properties is now examining whether any criminal misdeeds occurred.

For more than two years, New York Attorney General Letitia James' office has been investigating former President Donald Trump and his company after former Trump attorney Michael Cohen claimed they fraudulently boosted property values to obtain tax breaks and better terms on loans and insurance.

Until recently, that probe had been strictly civil in nature. But by Tuesday, things had changed.

A spokesman for James acknowledged her office is now investigating the Trump Organization for potential criminality, a major shift that could lead to charges if investigators uncover wrongdoing.

James' office is now working with Manhattan District Attorney Cy Vance, whose office has been conducting a separate criminal probe and is in possession of many Trump-related tax returns.

"We have informed the Trump Organization that our investigation into the organization is no longer purely civil in nature," James spokesman Fabien Levy said in a statement first reported late Tuesday by CNN. "We are now actively investigating the Trump Organization in a criminal capacity, along with the Manhattan (district attorney)."