NY AG: Trump Foundation Signs Stipulation To Dissolve

December 18, 2018 - 2:19 pm
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NEW YORK (WCBS 880) -- The New York Attorney General announced Tuesday that the Trump Foundation has signed a stipulation agreeing to dissolve.

State Attorney General Barbara Underwood had sued the Donald J. Trump Foundation over allegations that the president used his charity for personal benefit.

That lawsuit will continue with Underwood seeking $2.8 million in restitution, and a ban on President Donald Trump and his three eldest children from serving on the boards of other charities.

Underwood says the Trump Foundation functioned "as little more than a checkbook to service Mr. Trump's business and political interests."

The foundation will now dissolve and its remaining $1.7 million in assets will be distributed to charitable organizations approved by the attorney general's 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," Underwood said.

Harvey Dale, a professor of philanthrophy and law at New York University, said this kind of resolution is uncommon.

"I don't know of many cases in which a private foundation is dissolved as a result of litigation by the attorney general. That's an unusual situation," Dale told WCBS 880's Peter Haskell.

A lawyer for the president said the charity has made legitimate donations and the attorney general is politicizing the matter.

A judge must sign off on the agreement.