FRAUD IN THE FAMILY
State AG sues meathead Trump clan for sham charity
OK, dummy up, you! “Charity” run by President Trump and his kids (from left) Donald Jr., Eric and Ivanka is accused of breaking law to enrich them. With bunker mentality, Trump tweeted back, “I won’t settle!”
ALBANY –The Trump family’s claims of good will were built on a bad foundation.
A bombshell civil lawsuit filed Thursday — President Trump’s 72nd birthday — accuses the commander-in-chief and his three oldest children of operating a bogus namesake charity “in persistent violation” of federal and state laws for more than a decade.
The misdeeds included $2.8 million spent to promote Trump’s presidential campaign, along with supposed charitable funds used instead to “pay off the legal obligations of entities (Trump) controlled, to promote Trump hotels, (and) to purchase personal items,” the lawsuit charged.
The suit, filed by state Attorney General Barbara Underwood in Manhattan Supreme Court, alleged the Donald J. Trump Foundation funneled its cash into Trump’s personal dealings rather than assisting those less fortunate as part of its “pattern of illegal conduct.”
The state wants restitution for the $2.8 million in misspent money along with additional penalties, including a 10-year ban on Trump running a not-for-profit organization.
“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,” Underwood said. “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 court filing specifically accused Trump, along with daughter Ivanka and sons Donald Jr. and Eric, of “improper and extensive political activity, repeated and willful self-dealing transactions, and failure to follow basic fiduciary obligations.”
Underwood also notified the Internal Revenue Service and the Federal Election Commission about possible federal law-breaking by the Trumps that falls into their bailiwick.
The President predictably did not react well to the legal action, attacking Underwood’s predecessor Eric Schneiderman — who resigned amid allegations that he physically abused four women.
“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!” he tweeted.
“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,” Trump added.
The suit, stemming from a probe that began just months before the presidential election in June 2016, alleges the Trump Foundation raised $2.8 million that was used at the direction of top campaign officials to help influence the 2016 presidential election.
“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,” the suit says.
The filing includes an email from Trump campaign manager Corey Lewandowski.
“Is there any way we can make some disbursements this week while in Iowa. Specifically on Saturday,” Lewandowski emailed Jan. 29, 2016, to Allen Weisselberg, who at the time was the Trump Foundation treasurer and is currently the chief financial officer for the Trump Organization.
The Lewandowski email was followed by at least five $100,000 grants that were made to veterans groups in Iowa right before the Feb. 1 Iowa caucuses, the suit notes. The oversized checks given at public ceremonies even included Trump’s campaign slogan: “Make America Great Again.”
When a problem arose with making a grant before the Iowa caucuses to one of the designated charities, the campaign quickly secured a replacement Iowa veterans charity to appear at a campaign rally and receive a grant from the proceeds of the Iowa fund-raiser, the suit says.
In an Oct. 20, 2016, filing submitted to the attorney general’s Charities Bureau that Trump signed as president of the foundation, the charity asserted it held the Iowa fundraiser to aid veterans’ organizations.
“This statement was false because, in reality, the fundraiser was a Trump campaign event in which the foundation participated,” the suit charges.
The actions, the lawsuit alleges, violated the Internal Revenue Service code for charities by, among other things, making expenditures to influence the outcome of an election.
“Mr. Trump’s wrongful use of the foundation to benefit his campaign was willful and knowing,” the lawsuit alleges. “Mr. Trump was aware of the prohibition on political activities and the requirement of restrictions on related party transactions.”
The suit also claims that the city-based foundation, which was founded by Trump, who headed it until he became President, was also used to benefit his personal and business interests by paying off his legal obligations, promoting his hotels and other businesses, and purchasing personal items.
According to the suit, $100,000 in foundation money was used to settle legal claims against Trump’s Mar-A-Lago resort in Florida, $158,000 to settle a case against Trump National Golf Club in 2008 over a hole-in-one tournament, and $10,000 to purchase a painting of Trump at a charity auction that was then displayed at the Trump National Doral resort in Miami.