New York Sues Trump for Using His Foundation As A Slush Fund

New York Sues Trump for Using His Foundation As A Slush Fund

NY state's new attorney general Barbara Underwood sued the Donald J. Trump Foundation on Friday, including President Donald Trump and his three oldest children, alleging self-dealing, unlawful political coordination and other illegal practices.

At the heart of the case is a fundraiser that took place in January 2016, while Trump was a candidate in the heated Republican primary.

During the campaign Trump frequently derided a charity run by the Clinton family, saying without proof that the former secretary of state gave favourable treatment to the Clinton Foundation's wealthy donors.

NY is also seeking $US2.8 million ($3.7 million) of restitution plus penalties, a 10-year ban on Mr Trump serving as a director of a NY nonprofit, and one-year bans for his children Donald Jr, Eric and Ivanka.

The lawsuit claims that the Trump Foundation "is little more than an empty shell that functions with no oversight by its board of directors". Whatever board there is, it says, "existed in name only", failing to serve any role in overseeing or controlling the organization for the past 19 years.

A full copy of the petition, which was filed in New York Supreme Court on Thursday, can be found here.

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Banks said he had no Russian holdings and added that his only connection to the country was through his wife, who is Russian. Earlier, Mr Banks told the committee he does not have any business interests in Russian Federation .

The Republican president attacked the lawsuit in a series of posts on Twitter that blamed Democratic politicians in his home state.

The Trump Foundation later issued a statement slamming the lawsuit as "politics at its very worst" and accused Underwood of holding $1.7 million of its remaining funds "hostage for political gain". After the election, Eric Trump distanced himself from his charitable foundation, which has also been under investigation by the attorney general's office related to the shifting of its resources to the Trump Organization.

"The foundation illegally coordinated with the Trump campaign in 2016 around Trump's then-prominent veterans" fundraiser, allegedly allowing the campaign to manage the event and disburse donations, including letting Trump award oversized checks to groups at campaign events.

The White House did not have an immediate comment. She also wants him barred from serving as the head of a nonprofit for ten years.

U.S. President Donald Trump answers a final question while departing a press conference following his historic meeting with North Korean leader Kim Jong-un June 12, 2018 in Singapore.

Underwood's office also said that she sent referral letters to the IRS and the Federal Election Commission, identifying possible areas of federal law for further investigation. As evidence, the foundation cited the lawsuit's public release on the same day as the release of the Department of Justice inspector general's report on the Hillary Clinton email investigation. Ms Underwood may not be as outspokenly anti-Trump as her predecessor, but she appears to be equally - or more - aggressive where it counts, in courtroom.

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