New York Attorney General Barbara Underwood announced this week that the Trump Foundation has agreed to dissolve under the supervision of a judge, as Underwood’s lawsuit against the Trump Foundation moves forward. In June, Underwood sued the Foundation and its board members, including Donald Trump, Ivanka Trump, Donald Trump Jr., and Eric Trump, for allegedly committing unlawful political coordination with the Trump presidential campaign and using the Foundation to illegally fund their business and personal interests.
According to the lawsuit, Donald Trump used the Trump Foundation’s charitable assets to pay off his legal obligations, to promote Trump hotels and other businesses, and to purchase personal items. In addition, at Trump’s behest, the Trump Foundation illegally provided extensive support to his 2016 presidential campaign by using the Trump Foundation’s name and funds it raised from the public to promote his campaign for presidency.
In addition to seeking $2.8 million in restitution, Underwood’s lawsuit seeks to ban Trump and his eldest children from serving on the board of any other New York nonprofit. A recent court decision allowed Underwood’s lawsuit against the Trump Foundation to continue moving forward.
On Tuesday, Underwood announced that the Trump Foundation has signed a stipulation agreeing to dissolve under judicial supervision, with review and approval by the Attorney General of proposed recipient charities of the Foundation’s remaining assets. The foundation’s most recent tax return listed its net assets at slightly more than $1.7 million.
Alan Futerfas, a lawyer for the Trump Organization, issued a statement saying, “The Foundation has been seeking to dissolve and distribute its remaining assets to worthwhile charitable causes since Donald J. Trump’s victory in the 2016 Presidential election. Unfortunately, the NYAG sought to prevent dissolution for almost two years, thereby depriving those most in need of nearly $1.7 million.”
On Tuesday, New York Attorney General Underwood released the following statement: “Our petition detailed a shocking pattern of illegality involving the Trump Foundation – including unlawful coordination with the Trump presidential campaign, repeated and willful self-dealing, and much more. This amounted to the Trump Foundation functioning as little more than a checkbook to serve Mr. Trump’s business and political interests.
“Today’s stipulation accomplishes a key piece of the relief sought in our lawsuit earlier this year. Under the terms, the Trump Foundation can only dissolve under judicial supervision – and it can only distribute its remaining charitable assets to reputable organizations approved by my office.
“This is an important victory for the rule of law, making clear that there is one set of rules for everyone. 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.”