The NY AG sues the Trump Foundation for willful self-dealing

The AG sent referral letters to the IRS and the Federal Election Commission, no doubt to investigate tax and campaign finance violations uncovered by the AG’s office.

Updating on 6/14: A quirk in NY law prevents the NY AG from indicting the Trump family over misusing (stealing) charity funds. However, Cuomo can direct the NY Department of Taxation and Finance to refer the matter as a tax crime offense.

@adamdavidson did some excellent reporting on this latest with this case. The Trump Foundation asked that the trial not be set for the fall because that would be right before the midterms. The judge “laughed” and refused the request.

The case against the Trumps (using charity funds as a slush fund to enrich themselves and their cronies) is so strong that the judge expects them to settle—which means admitting to stealing charity money.

The judge hinted that the president may be required to testify.

11-23 update: The Trumps lost their motion dismiss the case. The document is here: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=5gpi0UXWZTG2BxZsqSlyBA==&system=prod

Here’s what happened: Instead of answering the petition, the Trumps filed a motion to dismiss the case. One of their claims was that a sitting president can’t be sued. Not surprisingly, the rejected this argument, relying on Clinton v. Jones.

The Trumps also claimed that the statute of limitations had expired on many of the transactions. The Court rejected this argument on the grounds that the illegal conduct was ongoing.

Here’s my favorite: the Trumps claimed that the case should be thrown out because the NY AG was motivated by a “pervasive bias” against Trump. The Court rejected this, citing the seriousness of the allegations.

Courts don’t evaluate government motives.Court’s look at the legality of the petition. Besides, there was no evidence that bias was the sole motivation.

The court granted one (minor) request: The Count found the preliminary injunction to prevent the Trump’s from operating the Foundation until the case is resolved moot because the Trumps are actively trying to dissolve the Foundation.

What this means is that the case goes forward.

The Trumps are required to answer the petition within 40 days.

Updating this with new info on November 23:

After the court ruled in the NY AG’s favor allowing the lawsuit to move forward,the Trump Foundation signed a stipulation to dissolve the Foundation under judicial supervision with review and approval by the AG: https://ag.ny.gov/sites/default/files/stipulation_re_dissolution_execution_version.pdf …

The NY AG is still seeking millions in penalties & restitution and a bar on Trump & his 3 oldest children from serving on the boards of other NY charities.

https://ag.ny.gov/press-release/ag-underwood-announces-stipulation-dissolving-trump-foundation-under-judicial. IOW, the lawsuit against the Trump Foundation moves forward.

NY AG makes this statement: https://twitter.com/NewYorkStateAG/status/1075058113148002305. It’s easy for this to get lost in the news hurricane, but stealing from charities is kind of a big deal. You might say that the Trumps habitually seeking to enrich themselves at the expense of others is starting look like what the rules of evidence call “habit, routine practice.” (understatement).