Here Are The Three Violations By The Trump Organization That Cost Donald Trump $2 Million

In a settlement agreement filed on Thursday, a New York State judge ordered President Donald Trump to pay $2 million to charities in relation to allegations that the Trump Foundation violated state charity laws and wrongly spent the funds.

Judge Saliann Scapula also approved the shuttering of the Trump Foundation, which began a dissolution process last year. The lawsuit was filed in June 2018 by New York State Attorney General Barbara Underwood, against Trump and his children Donald Trump Jr., Ivanka Trump, Eric Trump and the Trump Foundation.

Here are the violations that cost Trump $2 million:

Breach of financial duties

The lawsuit states that Trump, his children and the foundation "failed to discharge their duties as directors with the degree of care, skill, prudence, diligence, and undivided loyalty required of them." Specifically, it states they failed to hold at ones one annual board meeting or review the foundation's assets as is mandatory under law.

In addition, the suit says they failed to provide oversight of the foundation's work and "caused and/or allowed the Foundation to misuse charitable assets for the benefit of Mr. Trump and his personal and/or business interests."

Failure to administer the charity's assets properly

The suit states that Trump and his children failed to properly administer their duties to the foundation by "wrongfully" distributing charitable assets for the benefit of Trump and his interests, and "caused and/or permitted the Foundation to engage in political activity to influence the outcome of specific elections in violation of the Foundation's certificate of incorporation."

Wrongful transactions

According to the suit, Trump "caused the Foundation to enter into transactions in which he had a financial interest without obtaining authorization from the Board for those transactions" or without the board certifying the transactions were fair and reasonable.

Among the transactions were payments to the organizations including the Fisher House Foundation, the Martin B. Greenberg Foundation and the DC Preservation League.

"He fully understood and intended the financial benefits he and his businesses would derive from the transactions," the suit states.

The White House and the Trump Organization did not immediately respond to requests for comment from Newsweek on Thursday. The Trump Foundation could not be reached. However, in a statement to The Washington Post, the foundation said it was "pleased to donate an additional $2 million" to "worthy organizations."

The additional $1.7 million, the Post said, is what remains in the Foundation. The Foundation told the newspaper it would donate the money to charities that include the Army Emergency Relief, City Meals-on-Wheels, Martha's Table, the Children's Aid Society, the United Negro College Fund and the U.S. Holocaust Memorial Museum.

Tuesday's ruling comes after a three-year investigation into the Trump Foundation by the watchdog Citizens for Responsibility and Ethics in Washington (CREW). In a statement to Newsweek, CREW executive director Noah Bookbinder said the group "turned up repeated abuses of the law, leading to numerous complaints and an IRS fine."

"Today's settlement of the suit brought by the New York Attorney General's Office is a fitting and poetic end to this scandal," Bookbinder stated.

The Donald J .Trump Foundation announced its closure in December 2018 after the Foundation and the Attorney General for the Southern District of New York agreed on the terms. Those stipulations included that the Foundation donate its remaining funds to non-profit organizations.

Donald Trump Trump Foundation
President Donald Trump walks to board Air Force One before departing from Andrews Air Force Base in Maryland on August 21, 2019. MANDEL NGAN/AFP via Getty Images
Here Are The Three Violations By The Trump Organization That Cost Donald Trump $2 Million | Politics