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President blasts Trump Foundation lawsuit

President blasts Trump Foundation lawsuit

New York's attorney general is suing Donald Trump, his children and the Trump Foundation, alleging what she called "extensive and persistent violations of state and federal law".

The president is accused of using the charitable assets of the foundation to "pay off his legal obligations, to promote Trump hotels and other businesses, and to purchase personal items".

The lawsuit seeks to dissolve the foundation, Ms Underwood said.

Shortly before his inauguration, Trump settled a fraud case brought against Trump University by the state attorney general's office, then run by Eric Schneiderman, for $25m. "Trump ran the foundation according to whim, rather than law".

The lawsuit, filed in Manhattan Supreme Court, also names Trump's children Donald Trump Jr., Ivanka Trump and Eric Trump because they have been board members of the Donald J. Trump Foundation.

New York Attorney General Eric Schneiderman speaks during a news conference to discuss the civil rights lawsuit filed against The Weinstein Companies and Harvey Weinstein in New York on February 12, 2018.REUTERS/Brendan McDermid Schneiderman, Underwood's predecessor who started the investigation, resigned last month after allegations of abusing multiple women were made public. "I won't settle this case!".

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Underwood is also seeking restitution of the $2.8 million she says was paid to the presidential campaign and penalties.

The lawsuit claims that the charity engaged in illegal political coordination with Trump's campaign, made multiple self-dealing transactions to benefit Trump personally and his business interests, and violated legal obligations for such nonprofits in NY.

Underwood also asked that Trump be banned from leading any other NY nonprofit for 10 years.

The lawsuit follows an investigation of the Trump foundation that began in June 2016 under the previous NY attorney general, Eric Schneiderman, who resigned in disgrace in May.

Nevertheless, as NY attorney general Ms Underwood has significant investigatory and prosecutorial power - and if she starts flushing the bushes of some of Mr Trump's more questionable charitable activities, there's no telling what she might turn up.