Trump accused in lawsuit of misusing foundation
NEW YORK — New York’s attorney general sued President Donald Trump and his foundation Thursday, accusing him of illegally using the charity’s money to settle disputes involving his business empire and to promote his political fortunes during his run for the White House.
The president blasted the case as politically motivated.
The lawsuit seeks $2.8 million in restitution, additional unspecified penalties and the dissolution of the foundation, which Trump had already pledged to dismantle.
The attorney general’s two-year investigation detailed what it said was a closely co-ordinated effort between Trump’s campaign and the foundation to burnish his political image by giving out big grants of other’s people money to veterans’ organizations during the run-up to the Iowa caucuses, the first presidential nominating contest of 2016.
“The foundation’s grants made Mr. Trump and the campaign look charitable and increased the candidate’s profile to Republican primary voters and among important constituent groups,” Democratic Attorney General Barbara Underwood’s lawsuit said.
It accused the foundation of “improper and extensive political activity, repeated and wilful self-dealing transactions, and failure to follow basic fiduciary obligations.”
Underwood referred her findings to the IRS and the Federal Election Commission for possible further action. IRS and FEC representatives declined to comment.
In a couple of tweets, Trump called the case “ridiculous.”
“I won’t settle this case!” he wrote.
The 31-year-old foundation said that it has given more than $19 million to charitable causes while keeping expenses minimal, and that Trump and his companies have contributed more than $8 million.
Some of those expenditures, uncovered by The Post, were cited in the lawsuit, including a $100,000 payment to settle legal claims against Trump’s Mar-a-Lago resort in Palm Beach, Fla.; $158,000 to resolve a suit over a prize for a hole-in-one contest at Trump National Golf Club in Briarcliff Manor, N.Y.; $10,000 to buy a six-foot (1.8-metre) portrait of Trump at a charity auction; and $5,000 for advertisements published in the programs for charitable events. The ads promoted Trump’s hotels.