The Trump Organization is being investigated in a "criminal capacity" as New York prosecutors advance their probe into former President Donald Trump's business dealings, the state attorney general announced Tuesday.

"We have informed the Trump Organization that our investigation into the organization is no longer purely civil in nature," said Fabien Levy, a spokesman for Attorney General Letitia James' office.

"We are now actively investigating the Trump Organization in a criminal capacity, along with the Manhattan DA," added the spokesman.

The organization is the holding company of hundreds of Trump entities, ranging from hotels to golf courses. 

Trump, who left the White House in January, denies wrongdoing and has previously described the investigation into his finances by Manhattan District Attorney Cyrus Vance, a Democrat, as "a continuation of the greatest political witch hunt in the history of our country."

James has been investigating whether the Trump Organization inflated the values of some properties to obtain better loans, and lowered their values to obtain property tax breaks. 

The district attorney's investigation initially focused on hush payments made to two women who allege they had affairs with Trump, but had expanded to allegations of tax evasion and insurance and bank fraud.

(With input from agencies)