The New York state attorney general's office on Thursday sued the Donald J. Trump Foundation and its directors, accusing the charity of unlawfully coordinating with Mr. Trump's presidential campaign.
Prosecutors charge Trump with repeatedly misusing the nonprofit to pay off his businesses' creditors, to decorate one of his golf clubs and to stage a multimillion dollar giveaway at his 2016 campaign events. "I won't settle this case!"
Underwood said her office began probing the foundation in June 2016, when Schneiderman was still attorney general, and found that it operated without any oversight by a functioning board of directors.
NY is also seeking $2.8 million of restitution plus penalties, a 10-year ban on Trump serving as a director of a NY nonprofit, and one-year bans for his children Donald Jr, Eric and Ivanka. But those presidential powers couldn't be applied to state level prosecutions such as the one in NY.
Underwood is also seeking restitution of the $2.8 million she says was paid to the presidential campaign and penalties.
Trump Foundation "was little more than a checkbook for payments from Mr. Trump or his businesses to nonprofits, regardless of their goal or legality", Democratic Attorney General Barbara Underwood said as she sued to dissolve the foundation and seek $2.8 million in restitution.
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Barbara Underwood said the foundation had engaged in "extensive unlawful political coordination" created to influence the 2016 election.
She also sent referral letters to the Internal Revenue Service and the Federal Election Commission for possible further action, adding more weight to the legal troubles the president faces.
New York Attorney General Barbara Underwood has opened a new front in the ongoing criminal investigations into Donald Trump and his empire.
Nevertheless, as NY attorney general Ms Underwood has significant investigatory and prosecutorial power - and if she starts flushing the bushes of some of Mr Trump's more questionable charitable activities, there's no telling what she might turn up.
"This is politics at its worst", the foundation said in a statement.