New York attorney general sues Trump and family over charity, claiming 'illegal conduct' for 'more than a decade'
New York Attorney General Barbara Underwood sued President Donald Trump, three of his adult children, Donald Trump Jr., Eric Trump and Ivanka Trump, and the Donald J. Trump Foundation charity Thursday.Underwood alleges "a pattern of persistent illegal conduct" for more than a decade that included "extensive unlawful political coordination with the Trump presidential campaign."The AG is seeking $2.8 million in restitution and wants to dissolve the foundation.
Dan Mangan | @_DanMangan
Published 1 Hour Ago Updated 9 Mins AgoCNBC.com
Trump tweets about New York AG lawsuit 33 Mins Ago | 00:38
New York Attorney General Barbara Underwood sued President Donald Trump, three of his adult children and their charitable foundation Thursday, claiming "a pattern of persistent illegal conduct" for more than a decade.
Underwood said the Donald J. Trump Foundation engaged in "extensive unlawful political coordination with the Trump presidential campaign."
She also alleged "repeated and willful self-dealing transactions to benefit Mr. Trump's personal and business interests," and that the foundation violated "basic legal obligations for non-profit foundations."
In addition to Trump and the foundation, Underwood is suing Donald Trump Jr., Eric Trump, and their sister Ivanka Trump, a senior adviser to the president.
The family members are all board members of the foundation, according to Underwood, who filed suit in state court in New York City. But Underwood said the board of directors of the charity "existed in name only," since it never met after 1999, and did not approve of any grants.
Instead, Trump himself "made all the decisions related to the Foundation," according to the AG's office.
"As our investigation reveals, the Trump Foundation was little more than a checkbook for payments from Mr. Trump or his businesses to nonprofits, regardless of their purpose or legality," said Underwood in a prepared statement.
"This is not how private foundations should function and my office intends to hold the Foundation and its directors accountable for its misuse of charitable assets."
The attorney general said that President Trump used the foundation's name and funds it raised from the public to pay off his legal debts, promote Trump-branded hotels and other businesses "and to purchase personal items."
Those allegedly questionable payments cited by Underwood included a $100,000 payment to settle legal claims against the president's Mar-A-Lago resort in Florida, a $158,000 payment to settle claims related to a golf hole-in-one tournament at Trump National Golf Club, and $10,000 at a charity auction to buy a painting of Trump that was later displayed at his Trump National Doral in Miami.
And, at Trump's behest, the foundation "illegally provided extensive support to his 2016 presidential campaign by using the Trump Foundation's name and funds it raised from the public to promote his campaign," Underwood's office said.
The AG said the Trump Foundation raised more than $2.8 million at a nationally televised event that Trump hosted after he declined to participate in a presidential debate in Iowa.
Trump's campaign director at the time, Corey Lewandowski, "in violation of state and federal law," then "dictated the timing, amounts, and recipients of grants by the Foundation to non-profits," the AG's office said.
The suit notes that at least five grants, of $100,000 apiece, were awarded by the foundation to groups in Iowa just days before the Feb. 1, 2016, presidential caucuses in that state.
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Eric Trump, Donald Trump and Ivanka Trump speak during a charity event in New York City in 2012.
Underwood is asking for restitution of $2.8 million, plus penalties. She also is seeking to dissolve the foundation and to bar President Trump from serving as a director on a non-profit group in New York for 10 years, and to bar each of his children named in the suit from such posts for one year each.
Underwood has sent referral letters about her allegations to the IRS and the Federal Election Commission for further investigation and possible legal action.
Trump quickly fired back at the suit on Twitter, referencing not Underwood, but her immediate predecessor Eric Schneiderman, who recently resigned after a report that he had been physically violent with four women with whom he had been romantically involved.
Donald J. Trump
?@realDonaldTrump
The sleazy New York Democrats, and their now disgraced (and run out of town) A.G. Eric Schneiderman, are doing everything they can to sue me on a foundation that took in $18,800,000 and gave out to charity more money than it took in, $19,200,000. I won’t settle this case!...
10:09 AM - Jun 14, 2018
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Donald J. Trump
?@realDonaldTrump
....Schneiderman, who ran the Clinton campaign in New York, never had the guts to bring this ridiculous case, which lingered in their office for almost 2 years. Now he resigned his office in disgrace, and his disciples brought it when we would not settle.
10:09 AM - Jun 14, 2018
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In a prepared statement, a Trump Foundation spokesman said Underwood's lawsuit is "politics at its very worst."
"The Foundation has donated over $19 million to worthy charitable causes —more than it even received," the spokesman said. "The President himself – or through his companies — has contributed more than $8 million. The reason the Foundation was able to donate more than it took in is because it had little to no expenses. This is unheard of for a charitable foundation."
"The Foundation currently has $1.7 million remaining which the [New York Attorney General] has been holding hostage for political gain. This is unconscionable — particularly because the Foundation previously announced its intention to dissolve more than a year and a half ago."
"The prior NYAG, who was recently forced to resign from office in disgrace, made it his stated mission to use this matter to not only advance his own political goals, but also for his own political fundraising. The acting NYAG's recent statement that battling the White House is 'the most important work [she] have ever done' shows that such political attacks will continue unabated." |
