The attorney general of NY state sued the Donald J Trump charitable foundation, President Trump and three of his children on Thursday for violating state charity laws, alleging that the Trumps used charitable assets as "little more than a checkbook for payments to not-for-profits from Mr Trump" and his companies.
Underwood further asked that the state judge dissolve Trump's foundation, which he founded in 1987, and ordered Trump to pay a minimum of $2.8 million in penalties.
'Schneiderman, who ran the Clinton campaign in NY, never had the guts to bring this ridiculous case, which lingered in their office for nearly 2 years.
The lawsuit says the foundation illegally helped support the Republican's campaign by raising money at a nationally televised fundraiser in January 2016, then allowing campaign staffers to dictate how the money was spent in grants. Trump's oldest children - Ivanka Trump, Donald Trump Jr., and Eric Trump - are also named in the lawsuit because as board members, they were legally required to make sure funds weren't being misused.
Trump responded on Twitter, taking aim at former New York Attorney General Eric Schneiderman, who resigned after reports of domestic violence abuse, and his successors.
A section of the New York State lawsuit against the Trump Foundation
The lawsuit alleges illegal activity that took place over more than a decade, including "extensive unlawful political coordination with the Trump presidential campaign, repeated and willful self-dealing transactions to benefit Mr. Trump's personal and business interests, and violations of basic legal obligations for non-profit foundations".
In the suit, Underwood noted that the president had already paid more than $330,000 in reimbursements and penalty taxes since 2016.
Underwood also asked that Trump be banned from leading any other NY nonprofit for 10 years.
The foundation pressed the NY attorney general to withdraw the lawsuit so that it could dissolve and make remaining donations it proposed as a part of that plan.
Prosecutors also want to bar Trump's three eldest children from the boards of nonprofits based in NY or that operate in NY for one year.