TRUMP ACCUSED OF MISUSING FUNDS FROM FOUNDATION

Responding to a lawsuit by N.Y. attorney general, president says, “I won’t settle this case.”

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 boost his political fortunes during his run for the White House.

The president called the case “ridiculous.” In tweets, Trump vowed: “I won’t settle this case!”

The lawsuit against Trump and the foundation directors — his children Don Jr., Eric and Ivanka — seeks $2.8 million restitution, additional unspecified penalties and the dissolution of the foundation, which Trump already pledged to dismantle.

The attorney general’s office detailed what it said was a closely coordinated effort by Trump’s campaign and the foundation to burnish his political image by giving 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 willful 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.

The Washington Post reported that the foundation’s spending personally benefited the presidential candidate. In a handwritten note, Trump directed that $100,000 in foundation money go to settle legal claims against Trump’s Mar-a-Lago resort, the lawsuit said.

The foundation also paid $158,000 to resolve a lawsuit over a prize for a hole-inone contest at Trump National Golf Club in Briarcliff Manor, N.Y.; $10,000 to buy a 6foot 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.