The Donald J. Trump Foundation is shutting down permanently after a judge allowed a lawsuit against it by the state of New York to go forward.
New York Attorney General Barbara Underwood and a lawyer for the foundation signed the agreement stipulating that the foundation will be dissolved and its assets distributed to other nonprofits. On Tuesday, Underwood noted that the lawsuit is still going forward but celebrated the decision as "an important victory for the rule of law."
"There is one set of rules for everyone," Underwood said.
She also blasted the foundation as a sham intended to benefit Trump and his family that engaged in "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."
Underwood took credit for accomplishing some of their demands with the stipulation, which names the people of New York and Underwood as the petitioners and Trump and his children Don Jr., Ivanka, and Eric as the respondents, alongside the foundation.
"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," Underwood said.
"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," she concluded.
The attorney general previously said Trump would need her approval before dissolving the foundation, on account of the ongoing investigation. A lawyer for the foundation characterized her announcement as making a "misleading statement," the New York Times reported.
"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," Alan S. Futerfas said. "Unfortunately, the N.Y.A.G. sought to prevent dissolution for almost two years, thereby depriving those most in need of nearly $1.7 million."
"The N.Y.A.G.’s inaccurate statement of this morning is a further attempt to politicize this matter," he added.
The state of New York’s lawsuit still seeks millions from the Trumps in restitution and penalties.
When New York sued Trump in June, it charged "improper and extensive political activity, repeated and willful self-dealing transactions, and failure to follow basic fiduciary obligations or to implement even elementary corporate formalities required by law."