NEW YORK (Dec 21, 2018) — President Donald Trump’s troubled charity foundation has agreed to close down amid allegations that he and others illegally misused its funds. The move was announced by the Attorney General of New York State, Barbara Underwood, who will supervise the distribution of its remaining monies.
Underwood has accused Trump and his three eldest children of using the Foundation for private and political gains including unlawful coordination with the Trump presidential campaign.
The lawsuit against President Trump and three of his children – Donald Jr., Ivanka and Eric – will go forward even as the family foundation winds down.
Underwood’s lawsuit seeks more than $2.8 million in restitution plus additional penalties from these four members of the Trump family for allegedly misusing charitable assets and to temporarily prohibit them from serving on the board of any nonprofit incorporated or authorized to conduct business or solicit donations in the state.
Under the deal New York Attorney General Barbara Underwood reached with the foundation two weeks before she will leave her post and be replaced by fellow Democrat Letitia James, the state attorney general’s office will wield veto power over which charities receive the foundation’s remaining US$1.7 million in assets.
Trump has previously said on Twitter that the lawsuit was a concoction by “Sleazy New York Democrats” and that he was not willing to settle the case as the Foundation had done nothing wrong.
The state’s lawsuit against the Trump Foundation spells out a range of alleged violations of laws concerning non-profit organizations. Trump was the sole signatory on the foundation’s bank accounts and approved all of its grants.