NY Attorney Sues Trump, Family And Foundation For Charity Self-Dealing; A Furious Trump Responds

And here is Trump's furious response coming, of course, by twitter:

The sleazy New York Democrats, and their now disgraced (and run out of town) A.G. Eric Schneiderman, are doing everything they can to sue me on a foundation that took in $18,800,000 and gave out to charity more money than it took in, $19,200,000. I won’t settle this case!

Schneiderman, who ran the Clinton campaign in New York, never had the guts to bring this ridiculous case, which lingered in their office for almost 2 years. Now he resigned his office in disgrace, and his disciples brought it when we would not settle.

So if Trump "won't settle", does that mean that as part of discovery, the president will finally be forced to disclose his tax records?

Either way, it looks like war is about to break out between the White House and New York prosecutors.

* * *

Disgraced former NY Attorney General may have been a sexual deviant which cost him his job, but his replacement, acting NY AG Barbara Underwood has been busy, and moments ago confirmed that in just a few weeks she collected enough allegations to launch what the NYT called a "scathingly-worded" lawsuit against president Trump, his family and the Trump foundation, accusing the charity and the Trump family of sweeping violations of New York campaign finance laws, self-dealing and illegal coordination with the presidential campaign.

Acting NY AG Barbara Underwood

The lawsuit also accuses defendants of making expenditures to influence the outcome of an election Attorney general accuses defendants of self-dealing, wasting charitable assets, or violating US Tax law. It  seeks restitution of $2.8 million, penalties against the president, a ban on donald trump serving as an officer of a charity, and a declaration that the foundation conducted business in a 'persistently illegal manner' Lawsuit filed in the new york state supreme court in Manhattan.

The lawsuit, which seeks to dissolve the foundation and bar President Trump and three of his children from serving on nonprofit organizations, was an unprecedented rebuke of a sitting president. The attorney general also sent referral letters to the Internal Revenue Service and the Federal Election Commission for possible further action, adding to Mr. Trump’s extensive legal problems.

* * *

As the petition further alleges, 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 Mr. 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, including in the days before the Iowa nominating caucuses.

“As our investigation reveals, the Trump Foundation was little more than a checkbook for payments from Mr. Trump or his businesses to nonprofits, regardless of their purpose or legality,” said Attorney General Underwood. “This is not how private foundations should function and my office intends to hold the Foundation and its directors accountable for its misuse of charitable assets.”

The Attorney General’s investigation allegedly found that Trump Foundation raised in excess of $2.8 million in a manner designed to influence the 2016 presidential election at the direction and under the control of senior leadership of the Trump presidential campaign. The Foundation raised the funds from the public at the nationally televised fundraiser Mr. Trump held in lieu of participating in the presidential primary debate in Des Moines, Iowa, on January 28, 2016.  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, as evidenced by communications between Campaign staff and Foundation representatives:

Photo

At least five $100,000 grants were made to groups in Iowa in the days immediately before the February 1, 2016 Iowa caucuses. 

The Trump Foundation also entered into at least five self-dealing transactions that were unlawful because they benefitted Mr. Trump or businesses he controls.  These include a $100,000 payment to settle legal claims against Mr. Trump’s Mar-A-Lago resort; a $158,000 payment to settle legal claims against his Trump National Golf Club in 2008 from a hole-in-one tournament; and a $10,000 payment at a charity auction to purchase a painting of Mr. Trump that was displayed at the Trump National Doral in Miami. Following commencement of the Attorney General’s investigation, the Foundation paid excise taxes on three of the transactions and Mr. Trump restored funds for the transactions to the Foundation, but the Foundation has not paid excise taxes on the Mar-A-Lago or Trump National Golf Club transactions. 

As described in the Attorney General’s petition, none of the Foundation’s expenditures or activities were approved by its Board of Directors.  The investigation found that the Board existed in name only: it did not meet after 1999; it did not set policy or criteria for choosing grant recipients; and it did not approve of any grants. Mr. Trump alone made all decisions related to the Foundation.  

The Attorney General’s lawsuit seeks an order finding that the Foundation’s directors breached their fiduciary duties requiring them to make restitution for the harm that resulted, requiring Mr. Trump to reimburse the Foundation for its self-dealing transactions and to pay penalties in an amount up to double the benefit he obtained from the use of Foundation funds for his campaign, enjoining Mr. Trump from service for a period of ten years as a director, officer, or trustee of a not-for-profit organization incorporated in or authorized to conduct business in the State of New York, and enjoining the other directors from such service for one year (or, in the case of the other directors, until he or she receives proper training on fiduciary service). To ensure that the Foundation's remaining assets are disbursed in accordance with state and federal law, the lawsuit seeks a court order directing the dissolution of the Foundation under the oversight of the Attorney General's Charities Bureau. 

In addition to filing its dissolution petition, the Office of the Attorney General sent referral letters to the Federal Election Commission and the Internal Revenue Service. These letters set forth in specific detail the underlying facts that have led the Attorney General to conclude that additional investigation and potential further legal action by these federal authorities are warranted.  

* * *

This case is being handled by Matthew Colangelo, Executive Deputy Attorney General, James Sheehan, Chief of the Charities Bureau, Laura Wood, Senior Advisor and Special Counsel, Assistant Attorney General Yael Fuchs, Co-Chief of the Enforcement Section of the Charities Bureau, and Assistant Attorneys General Steven Shiffman and Peggy Farber of the Charities Bureau. This matter is being overseen by Chief Deputy Alvin Bragg and Chief of Staff and Deputy Attorney General Brian Mahanna. 

The full lawsuit can be found at the following link.

Comments

El Vaquero Bastiat Thu, 06/14/2018 - 11:24 Permalink

“As our investigation reveals, the Trump Foundation was little more than a checkbook for payments from Mr. Trump or his businesses to nonprofits, regardless of their purpose or legality,” said Attorney General Underwood.

So it doesn't matter whether the law was broken or not, you're going to punish somebody.  Nice.  Why not file this in criminal court, rather than civil?  Something about differing standards of evidence?

In reply to by Bastiat

CuttingEdge El Vaquero Thu, 06/14/2018 - 11:28 Permalink

Timing dictates this is pure distraction from the IG drop in 3 hours.

Gives the MSM something else to go wall to wall on, and put Horowitz in the background - even if it is a load of bollocks.

Cunts.

 

And that acting AG?

One seriously butt-ugly mother.

I've just realized why burkas are trending. Someone mail this bitch one, please.

In reply to by El Vaquero

fleur de lis Whoa Dammit Thu, 06/14/2018 - 11:53 Permalink

So an Attorney General with the responsibilities of governance is still furious at an election outcome after all this time and uses her state position to torment anyone?

Isn't that what they call abuse of power?

If she is so obsessed with abusing her DoJ power why doesn't she make it official and go work for Mueller?

That ugly broad needs to be disbarred and sent to psych ward. 

At the very least she should be fired since she is not working on her civil obligations, has too much free time on her hands, and is still collecting a big fat .gov paycheck.

Package her out and close the spot to save money  -- it is obviously not needed.

In reply to by Whoa Dammit

ironmace King of Ruperts Land Thu, 06/14/2018 - 12:45 Permalink

The people in most of the state are actually ok. It's the government that gets voted in by the 5 boroughs that sucks.

NYC ruins that state. They should make it a city state like the Vatican or City of London, and leave the rest of NY alone. It would snap to red in an instant. 

Politically wall off NYC, Queens, Brooklyn, Westchester and the Bronx (maybe really wall off the Bronx.) Let them vote for their own.

That's your swamp right there. Thats the festering cancer that's killing this country.

In reply to by King of Ruperts Land

Endgame Napoleon CuttingEdge Thu, 06/14/2018 - 12:18 Permalink

Over the course of history, some foundations have advanced civilization greatly, but today, there is a fake foundation culture that is a symptom of wealth concentration.

Foundations are just a rite of passage for the 1%.

Giving to PC foundations and other not-for-profits is a social requirement for the top 20%. It is a fake version of the social graces and good manners among the top 20% of dual-high-earner parents, with the small perk of a place to wear fancy ball gowns for the well-past-prom-age Establishment. 

However, this scandal could be a distraction from the impending betrayal from RepubliCONs on the main issue that put Trump in office: http://www.breitbart.com/big-government/2018/06/13/gop-immigration-deal…

Foundations—

How about addressing the fact that, since wealth concentration levels climbed to the moon in the USA, American Elites do not spend as much time building strong businesses that employ American citizens, likewise increasing the national tax base. They divide their highly-paid work time into the following slices:

  1. 1/3rd courting deep-pocketed, global contacts to ramp up business opportunities in countries with cheap labor markets;
  2. 1/3rd setting up foundations, many of which claim to serve the global poor, like the Clinton Foundation, and most of which milk the theme of needy children, which brings in the most $$$$; 
  3. 1/3rd to fend off legal challenges from an increasingly impoverished citizenry in a country that used to have a huge middle class with lots of social mobility, but that now has a top 20% of well-vacationed, dual-high-earner parents in households with assortative mates and a top 1% with fabulous amounts of wealth, albeit a lot of it is so-called paper wealth, which is less & less engaged in creating new & viable businesses that employ American citizens in substantial ways and more & more engaged in 1) global ventures in countries with cheap and racially homogenous labor pools, 2) creating static & inter generational wealth through stock market betting and other safer investments and 3) foundations with heartwarming baby themes.

Noted: American foundation elites, including but not only politicians, mostly serve the interests of less-developed, cheap-labor countries, where they might be able to make pots of money since there is less already-in-place development in those nations, whereas the US has what is called a mature economy. Wonder why they do that? 

Noted (with weepy eyes if any baby pics are waved around for PR purposes): The USA is full of poverty that is less PR worthy and that is not addressed by the elaborate welfare system. None of the less PR-friendly poverty is dented by all of this dual-purpose charitable enterprise that also serves as advertising.

Since some charity provides better advertising benefits than other charity, it is also redundant. The groups served by foundations & other not-for-profits are mostly the same groups that qualify for a motherload of government assistance: from free rent, to free food, to monthly cash assistance, to free electricity, to refundable child tax credits up to $6,431. 

Morality is not on an upswing due to all of these charitable foundations, large and small, whether owned by the off-the-charts wealthy or people with lesser wealth. There has never been as many not-for-profits in America with kid themes, and yet, we have never had so much moral depravity to the point of schools being shot up by kids themselves every couple of months. Kids do not come pre-packaged with as many layers of fake. Maybe, the kids see through all of this. 

In reply to by CuttingEdge

Pollygotacracker Endgame Napoleon Thu, 06/14/2018 - 13:07 Permalink

If this immigration plan gets to Trumps desk will he veto it? Does Congress have the votes to over ride a veto? If Paul Ryan gets this through it will be the end of Trump, in my humble opinion. Who cares about North Korea when your own neighborhood is going down the tubes?

P.S. I hope that the cheap labor lobby understands that once this country goes full Democrat, due to huge amnesty programs, they will have to live with the left and their insane policies FOREVER!

In reply to by Endgame Napoleon

Oh regional Indian BaBaBouy Thu, 06/14/2018 - 11:21 Permalink

Can't wait for TeeeheeeMousely come and explain how this is all masterful art of the deal.

And not what it obviously is. A criminal family's criminal dealings. Straight up.

Also, reading down the line, the Fuck Hillary crowd, who cannot get away from their mistake, have a binary view of life and stuck in a fucking twilight zone of needing a strong leader.

Fucking brainless twits cannot see that his "forgiving" hillary, essentially in his victory speech was all the tell that was needed.

Get fucking educated about reality, so you can be free....

https://aadivaahan.wordpress.com/2016/09/13/hey-americans-and-indians-r…

In reply to by BaBaBouy

Oh regional Indian Billy the Poet Thu, 06/14/2018 - 13:47 Permalink

Billy the poo-yet. Never read anything remotely poetic or sensible from you. Only butthurt. 

All the way down the thread, like a dog yipping.....

Why so butthurt Billy? Because an Indian makes more sense than you?

The link is an expose of how DC was created, 13th amendment citizens etc.... a real education....

Anyways, I'm sure you love all the angry white boy up arrows (up your butthurt ass arrows)...

A sad specimen you are, a fuckwit to boot....

In reply to by Billy the Poet

GoingBig Oh regional Indian Thu, 06/14/2018 - 13:29 Permalink

Trump is a self dealing criminal. He used to be okay but something happened to him in the 90's and 00's. Now he is a brain dead narcissist who doesn't read or write. He is basically a trailer park boy with a lot of cash because he fucked over so many people and banks. But why confuse people on ZeroHedge with facts? They only like to believe their own garbage. 

In reply to by Oh regional Indian

Deep Snorkeler CuttingEdge Thu, 06/14/2018 - 11:12 Permalink

Self Dealer Trump

With a squid beak face, he operates a sonic wave machine

that daily destroys the brains of sane Americans.

King of the billionaire leech class, he successfully combines

neo-fascism with cartoons, celebrity culture and presidential politics,

creating a daily tirade of dumb noise we can no longer stand.

The Trump family is another NYC crime family.

In reply to by CuttingEdge

Oh regional Indian Deep Snorkeler Thu, 06/14/2018 - 11:25 Permalink

Brother DS, while your poetic skills are cool, your insights are spot on. Every time.

Your raft of down arrows is a direct reflection of how dumbed down everyone, including the majority of the once sharp readership of this board, has become.

Keep doing what you do man, someone might get a hint.... some one, might even think for once instead of having to be thought for....

In reply to by Deep Snorkeler

the artist BaBaBouy Thu, 06/14/2018 - 11:28 Permalink

This means that the DOJ is getting very close to revealing the crimes surrounding the Clinton charities. 

Just like Russiagate, it is an effort to get out ahead of the PR by blaming others for what you are doing. 

Good, maybe this will turn up the heat of the abortion that is the Clinton Foundation and the massive fraud ongoing there. 

In reply to by BaBaBouy