Trump Will Dissolve Foundation In Partial Settlement With NY Attorney General

WASHINGTON, DC - DECEMBER 11 : President Donald J. Trump debates with House Minority Leader Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., as Vice President Mike Pence listens during a meet... WASHINGTON, DC - DECEMBER 11 : President Donald J. Trump debates with House Minority Leader Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., as Vice President Mike Pence listens during a meeting in the Oval Office of White House on Tuesday, Dec. 11, 2018 in Washington, DC. (Photo by Jabin Botsford/The Washington Post via Getty Images) MORE LESS

New York Attorney General Barbara Underwood announced Tuesday that President Trump signed off on an agreement to dissolve his scandal-plagued private foundation. Underwood’s lawsuit against Trump and his three oldest children for violating state charity law will move forward.

The move is a win for Underwood’s office, which sought the Donald J. Trump Foundation’s dissolution as part of a June lawsuit alleging that it served as a personal piggy bank servicing the President’s business and political needs. Trump has dismissed the suit as a partisan smear job brought by “sleazy New York Democrats.”

Underwood said in a statement that the development “accomplishes a key piece of the relief sought” by her office.

“This is an important victory for the rule of law, making clear that there is one set of rules for everyone,” Underwood said.

Under the stipulation, the $1.75 million remaining in the foundation’s coffers can only be dispersed to other charities approved by Underwood’s office and a state judge.

Trump announced in late 2016 that he planned to close the foundation, but the New York attorney general blocked him from doing so given the ongoing investigation.

The June lawsuit alleged that Trump used the foundation to settle private business matters and build up his goodwill among GOP voters during his campaign for president. Days before the 2016 Iowa primaries, Trump used campaign resources to organize a fundraiser for veterans, promoting both his personal foundation and his presidential bid simultaneously.

A New York judge ruled in November that the civil suit could move forward given the “very serious” allegations of wrongdoing by the president and his charity.

Read the new court document below.

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