The New York State attorney general has filed a lawsuit against Donald. J.Trump Foundation. The foundation including its directors - the President, his sons Eric and Donald Jr. and daughter Ivanka - have been accused of violating the state and federal charities law.
Attorney General Barbara Underwood alleges persistent violations of laws for more than a decade which includes illegal coordination with the presidential campaign.
Underwood said, "As our investigation reveals, the Trump Foundation was little more than a checkbook for payments from Trump or his business to nonprofits, regardless of their purpose or legality."
The lawsuit seeking to dissolve the foundation and bar President Trump and his children from serving on nonprofit organizations is a big blow for a sitting president.
Referral letters were sent to the Internal Revenue Service and the Federal Election Commission for further action, in addition to filing the suit. This lawsuit by the Attorney General culminated a nearly two-year investigation by her office.
The investigation reveals that the Trump foundation paid excise taxes on three of the transactions, and Trump restored funds for the transactions to the foundation. The foundation has not paid the excise taxes on the Mar-a-Lago or Trump National Golf Club transactions.
The Attorney General's office alleges that a $10,000 portrait of Trump hung on one of his golf clubs was one of the 'self-dealing transactions' by the foundation, violating tax regulations which prohibit using charity funds for private interests.
The lawsuit seeks the Trump Foundation to pay $2.8 million in restitution which was raised in 2016 for the foundation at Iowa political fund-raiser.
Trump foundation representative has given out a statement. It said, "This is politics at its very worst. The Foundation has donated over $19 million to worthy charitable causes - more than it even received. The President himself - or through his companies - has contributed more than $8 million. The reason the Foundation was able to donate more than it took in is because it had little to no expenses. This is unheard of for a charitable foundation."
"The Foundation currently has $1.7 million remaining which the NYAG has been holding hostage for political gain. This is unconscionable - particularly because the Foundation previously announced its intention to dissolve more than a year and a half ago. The prior NYAG, who was recently forced to resign from office in disgrace, made it his stated mission to use this matter to not only advance his own political goals, but also for his own political fundraising."
"The acting NYAG's recent statement that battling the White House is 'the most important work (she) have ever done' shows that such political attacks will continue unabated," it added.
President Trump was quick to respond to the allegation and took it to his Twitter.
He wrote, "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!..."
