Trump Foundation is facing lawsuit from Democratic Atty. Gen. Barbara Underwood, who says Mr. President misappropriated funds from the charity organization during his 2016 US Presidential Election campaigns.
Image: President Trump’s family
The New York-resident legal practitioner alleged that President Trump’s foundation served like a “personal piggy bank” for his private business operations, including payment of legal bills and miscellaneous expenses from the presidential campaign.
Attorney General Underwood filed a lawsuit valued at $2.8 million in restitution on Wednesday, the UK Guardian reported.
Defendants in the lawsuit include Trump Foundation, its management board, President Trump and his children – Donald Trump Jr., Eric Trump and Ivanka Trump.
The lawsuit file on Mr. Trump’s 72nd birthday is seeking huge penalties against the Republican president. The demands include distribution of $1 million-worth of assets belonging to Trump Foundation to other charities outfits within the country.
Underwood claims the foundation doled out “illegal” sums of money in support of President Trump’s campaign and raised funds for same purpose through a nationwide televised fundraiser in January 2016. Campaign managers were allowed to decide what part of the funds was spent as grants but, in his response, the US President tweeted soon after the news that his alleged misuse of public funds is a handiwork of “sleazy Democrats in New York.”
Mr. President argued that his foundation withdrew only $18.8 million and made even higher donations to charity, specifically $ 19.2 million.
In the President’s words on Thursday, “I won’t settle this case!”
According to the UK Guardian, if President Trump insists on not settling the case out of court, a trial would be unavoidable, and this situation may involve a thorough investigation that will uncover the inner workings of Trump Foundation. This process will also unsettle the US president’s administrative responsibilities.
Underwood was quoted as saying, “…In violation of state and federal law, senior Trump campaign staff, including campaign manager Corey Lewandowski, dictated the timing, amounts, and recipients of grants by the foundation to non-profits.”
Just before his inauguration, President Trump reportedly paid $25 million for a fraud case filed against Trump University by the state attorney general’s office, then managed by Schneiderman.