Posted
A New York state judge has ordered US President
Donald Trump to pay $US2 million ($2.9 million) for misusing his
namesake charitable foundation, resulting in funds being used to advance
his 2016 presidential campaign.
Key points:
- The money will go to eight charities, including the Army Emergency Relief and Children's Aid Society
- Mr Trump accused the Attorney-General of using the decision for "political purposes"
- The Donald J. Trump Foundation was dissolved in 2018
Justice Saliann Scarpulla, of the state Supreme Court in Manhattan, directed the payment to eight non-profits, in connection with a lawsuit by the state's Attorney-General against the President and three of his adult children over the now-dissolved Donald J. Trump Foundation.
Mr Trump defended the charity in a statement on Twitter, saying the foundation was an "incredibly effective philanthropy" that had made "some small technical violations".
A spokesman for the Trump Foundation said it was pleased the court rejected the Attorney-General's request for punitive damages.
Attorney-General Letitia James said her office had also reached agreements with the foundation and its directors to end the June 2018 lawsuit, which was filed by her predecessor, Barbara Underwood.
Ms James said Mr Trump admitted to "personally misusing funds at the Trump Foundation," which agreed last December to dissolve, and accepted limits on his activities if he created a new charity.
Ms James also said Mr Trump's children — Donald Jr, Eric and Ivanka — agreed to "mandatory training" on the duties of charity officials.
"The court's decision, together with the settlements we negotiated, are a major victory in our efforts to protect charitable assets and hold accountable those who would abuse charities for personal gain," Ms James said in a statement.Mr Trump, in his statement, accused Ms James of "deliberately mischaracterising this settlement for political purposes".
Ms Underwood had filed suit after a 21-month probe that she said uncovered, "extensive unlawful political coordination" between the Trump Foundation and Mr Trump's campaign.
The lawsuit sought to recoup $US2.82 million ($4 million) donated to the foundation in a 2016 Iowa fundraiser for military veterans, but which Ms Underwood said Mr Trump allowed his campaign to control.
Justice Scarpulla agreed with the Attorney-General's office that Mr Trump had breached his fiduciary duty to the foundation.
"Mr Trump's fiduciary duty breaches included allowing his campaign to orchestrate the fundraiser, allowing his campaign, instead of the foundation, to direct distribution of the funds, and using the fundraiser and distribution of the funds to further Mr Trump's political campaign," she wrote.The judge said that because the money ultimately went to support veterans, Mr Trump should pay just $US2 million, without interest, rather than the entire $US2.82 million.
In refusing to award punitive damages, Justice Scarpulla cited Mr Trump's agreement to take steps to avoid a recurrence.
The money is expected to go to Army Emergency Relief, the Children's Aid Society, City Meals-on-Wheels, Give an Hour, Martha's Table, the United Negro College Fund, the United Way of the National Capital Area and the United States Holocaust Memorial Museum.
Reuters
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