Trump Foundation agrees to dissolve amid corruption investigation
Trump Foundation agrees to dissolve amid corruption investigation

The Trump Foundation agreed by a stipulation on Tuesday to dissolve under judicial supervision, with review and approval by the New York Attorney General Barbara Underwood, amid an investigation and lawsuit alleging the charity’s involvement in fundraising for Donald Trump’s own presidential campaign.

Underwood filed a lawsuit in June that alleges the Trump Foundation engaged in “a pattern of persistent illegal conduct … includ[ing] extensive unlawful political coordination with the Trump presidential campaign, repeated and willful self-dealing transactions to benefit Mr. Trump’s personal and business interests, and violations of basic legal obligations for non-profit foundations.”

The foundation was required to file with the IRS every year promising it had no political engagement.

Tuesday’s stipulation follows a court decision last month that allowed lawsuit proceedings to advance. The lawsuit, which seeks more than $2.8 million in restitution and additional penalties, remains.

Trump had initially agreed to dissolve the foundation following the 2016 election, but the charity was blocked from doing so surrounding fear the foundation would destroy documents and assets related to any conflict of interest.

Underwood said in a press release Tuesday that the agreement to dissolve “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.”