Trump must pay $2 million for misusing namesake charity - NY judge

By Jonathan Stempel NEW YORK (Reuters) - A New York state judge on Thursday ordered U.S.

Reuters November 08, 2019 03:11:22 IST
Trump must pay $2 million for misusing namesake charity - NY judge

Trump must pay 2 million for misusing namesake charity  NY judge

By Jonathan Stempel

NEW YORK (Reuters) - A New York state judge on Thursday ordered U.S. President Donald Trump to pay $2 million for misusing his namesake charitable foundation, resulting in funds being used to advance his 2016 presidential campaign.

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.

The White House was not immediately available for comment. A lawyer for the Trumps did not immediately respond to a request for comment.

The attorney general, Letitia James, said her office has also reached agreements with the foundation and its directors to end the June 2018 lawsuit, which was filed by her predecessor, Barbara Underwood.

James said 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. James also said 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," James said in a statement.

Underwood had filed suit after a 21-month probe that she said uncovered "extensive unlawful political coordination" between the Trump Foundation and Trump's campaign. The lawsuit sought to recoup $2.82 million donated to the foundation in a 2016 Iowa fundraiser for military veterans, but which Underwood said Trump allowed his campaign to control.

Scarpulla agreed with the attorney general's office that 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, Trump should pay just $2 million, without interest, rather than the entire $2.82 million. She rejected James' request for punitive damages, citing Trump's agreement to take steps to avoid a recurrence.

The $2 million 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.

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.