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Trump Foundation to Close in Deal With New York Attorney General Trump Foundation to Close After Lawsuit by New York Attorney General
(35 minutes later)
The Donald J. Trump Foundation has agreed to close following a court decision that allowed a lawsuit against the foundation to move forward, the New York attorney general’s office announced Tuesday. The Donald J. Trump Foundation will close and give away all its remaining funds amid a lawsuit accusing the charity and the Trump family of using it illegally for self-dealing and political gain, the New York attorney general’s office announced Tuesday.
The attorney general, Barbara Underwood, accused the foundation of “a shocking pattern of illegality” that was “willful and repeated” and included unlawfully coordinating with Mr. Trump’s 2016 presidential campaign.The attorney general, Barbara Underwood, accused the foundation of “a shocking pattern of illegality” that was “willful and repeated” and included unlawfully coordinating with Mr. Trump’s 2016 presidential campaign.
[Want to know more about the Trump Foundation? Read this explainer.]
“This amounted to the Trump Foundation functioning as little more than a checkbook to serve Mr. Trump’s business and political interests,” Ms. Underwood said.“This amounted to the Trump Foundation functioning as little more than a checkbook to serve Mr. Trump’s business and political interests,” Ms. Underwood said.
She has sought to bar Mr. Trump and his three eldest children from serving on the boards of other New York charities in the future. The foundation’s remaining assets are to be redistributed. The closure of the foundation is a milestone in the investigation. But the broader lawsuit, which also seeks millions in restitution and penalties and a bar on President Trump and his three oldest children from serving on the boards of other New York charities, is proceeding.
Ms. Underwood’s office sued the Donald J. Trump Foundation in June, charging it with “improper and extensive political activity, repeated and willful self-dealing transactions, and failure to follow basic fiduciary obligations or to implement even elementary corporate formalities required by law.” Ms. Underwood and a lawyer for the foundation signed the stipulation agreeing to the dissolution. The foundation’s remaining assets are to be redistributed under judicial supervision.
“This is an important victory for the rule of law, making clear that there is one set of rules for everyone,” Ms. Underwood said. “We’ll continue to move our suit forward to ensure that the Trump Foundation and its directors are held to account for their clear and repeated violations of state and federal law.”
The Trump Foundation’s lawyer did not immediately respond to a request for comment.
Mr. Trump had said after the 2016 election that he would dissolve the foundation to avoid any appearance of conflict of interest. But the attorney general’s office said that such a move would require its approval, given the continuing investigation.
Ms. Underwood’s office sued the Trump Foundation in June, charging it with “improper and extensive political activity, repeated and willful self-dealing transactions, and failure to follow basic fiduciary obligations or to implement even elementary corporate formalities required by law.”
The lawsuit follows years of scrutiny of President Trump’s charitable activities and adds to the president’s extensive legal challenges, amid a continuing investigation by special counsel Robert S. Mueller III.
[Want to know more about the Trump Foundation? Read this explainer.]