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New York attorney general sues Trump Foundation

Associated Press Jun 14, 2018
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U.S. President Donald Trump participates in a meeting with leaders of the steel and aluminum industries at the White House on March 1, 2018 in Washington, DC. Trump announced planned tariffs on imported steel and aluminum during the meeting, with details to be released at a later date. (Photo by Win McNamee/Getty Images)

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 cooperate 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.

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