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New York attorney general sues Trump Foundation

Last Updated Jun 14, 2018 at 8:42 am PDT

FILE - President Donald Trump holds up an executive order for border security and immigration enforcement improvements after signing the order during a visit to the Homeland Security Department headquarters in Washington, on Jan. 25, 2017. A survey conducted by The Associated Press-NORC Center for Public Affairs Research and MTV finds that parents and their kids agree about a lot of things when it comes to politics. Most in both generations disapprove of Trump, and 55 percent say they usually see eye to eye about politics. (AP Photo/Pablo Martinez Monsivais, File)
Summary

NY AG says Trump's foundation served as a personal piggy bank for his businesses, legal bills and presidential campaign

New York's attorney general is looking to dissolve the Trump Foundation and seek $2.8 million in restitution

NEW YORK – President Donald Trump’s charitable foundation served as a personal piggy bank for his businesses, legal bills and presidential campaign, New York’s attorney general said Wednesday as she sued the charity, Trump and three of his children.

The Donald J. Trump Foundation “was little more than a checkbook for payments from Mr. Trump or his businesses to nonprofits, regardless of their purpose or legality,” Democratic Attorney General Barbara Underwood said as she sued to dissolve the foundation and seek $2.8 million in restitution.

The lawsuit says the foundation illegally helped support the Republican’s campaign by raising money at a nationally televised fundraiser in January 2016, then allowing campaign staffers to dictate how the money was spent in grants.

Foundation attorney Sheri Dillon and a Trump Organization spokeswoman didn’t immediately respond to messages seeking comment.

The foundation’s mission says its funds are to be used “exclusively for charitable, religious, scientific, literary or educational purposes,” either directly or through other organizations, according to the court filing. In keeping with federal tax rules, the charity’s incorporation documents say none of its resources can directly or indirectly go to the benefit of its directors or officers and none of its activities can benefit any political candidate, the filing notes.

Underwood’s predecessor, Democrat Eric Schneiderman, began investigating the foundation in 2016 following Washington Post reports that its spending personally benefited the presidential candidate. Schneiderman ordered the foundation to stop fundraising in New York.

The Trump campaign, at the time, said the foundation intended to co-operate with the investigation. The campaign had previously called Schneiderman “a partisan hack” who backed Trump’s 2016 Democratic rival, Hillary Clinton.

Schneiderman resigned last month after allegations that he abused women he had dated; he denied the claims.