NEW YORK, New York - U.S. President Donald Trump has agreed to shut down his controversial charitable foundation, amidstallegations of illegal and unethical practices.
The Trump foundation has signed a stipulationagreeing to be dissolved under the supervision of the New York Attorney General's office.
The dramatic move, negotiated over the past four weeks, follows a court decision last month which approved a lawsuit filed by the attorney general against the foundation, allowing it to proceed.
Under the terms of the agreement reached on Tuesday, the attorney general's office will need to review and approve of how the foundation's remaining assets and funds are distributed, includingto which charities, and to what extent.
This latest development is a victory for Attorney General Barbara D. Underwood (pictured) who sued the Trump Foundation in a bid to have it dissolved under judicial supervision and with the oversight of the Attorney General's Charities Bureau.
Underwood, despite being successful in shutting the foundation down, is to continue the lawsuit which also seeks millions in restitution and penalties, and a bar on President Trump and his three eldest children from serving on the boards of other New York charities.
Our petition detailed a shocking pattern ofillegality involving the Trump Foundation, including unlawfulcoordination with the Trump presidential campaign, repeated and willful self-dealing, and much more.This amounted to the Trump Foundation functioning as little more than a checkbook to serve Mr. Trumps business and political interests," theattorney general said Tuesday.
Todays stipulation 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. "
This is an importantvictoryfor the rule of law, making clear that there is one set of rules for everyone. Well continue to move our suit forward to ensure that the Trump Foundation and its directors are held to account for their clear and repeated violations of state and federal law, Undewood said.
The attorney general filed the stipulation with the court on Tuesday.