Trump Foundation shutting down amid allegations money used for personal benefit

By Aimee Picchi

/ MoneyWatch

N.Y. investigating Trump Foundation

President Donald Trump has agreed to shut down his family's embattled Trump Foundation, following investigators' allegations the charity misused funds by directing them to Mr. Trump or his businesses.

New York Attorney General Barbara D. Underwood said in a statement the Trump Foundation had signed an agreement to dissolve the charity under court supervision. The attorney general will review and approve the process, including approving the charities slated to receive the foundation's remaining assets.

The attorney general's office filed a lawsuit in June accusing the Trump Foundation of misusing funds for personal benefit, including Trump Organization legal payments and Mr. Trump's 2016 presidential campaign. Among the claims were that the foundation raised money at a nationally televised fundraiser in January 2016, then allowed Trump campaign staffers to dictate how the money was spent in grants.

The lawsuit, which seeks to bar Mr. Trump and his three eldest children from serving on the boards of other New York-based charities, will continue, the AG said in the statement. The lawsuit also seeks "millions in restitution" for what it said was a "a shocking pattern of illegality."

The Trump Foundation functioned "as little more than a checkbook to serve Mr. Trump's business and political interests," Underwood said in the statement. "This is an important victory for the rule of law, making clear that there is one set of rules for everyone."

The Trump Foundation could not be immediately reached for comment.

First published on December 18, 2018

© 2018 CBS Interactive Inc.. All Rights Reserved.

Trump Foundation shutting amid probe into donations

New York's attorney general says Trump Foundation has agreed to dissolve, with its assets going to approved charities

updated 3M ago

Court hearing scheduled for Rep. Chris Collins in insider trading case

The New York Republican, charged with insider trading, is accused of sharing information with his son about a biotech company in which he held the largest shares

updated 10M ago

Station plays "Baby, It's Cold Outside" for hours in protest

"WE LOVE THE SONG" the radio station proclaimed after several others banned it

updated 14M ago

Rep. Martha McSally appointed to finish McCain's term in Senate

McSally lost a race for the Senate in November to Democratic Rep. Krysten Sinema, but now both will head to the chamber

updated 36M ago

Elderly neighbor's Christmas generosity melts hearts

2-year-old Cadi now has a special present to open every Christmas until she is 16 years old

updated 45M ago

Trump Foundation shutting amid probe into donations

New York's attorney general says Trump Foundation has agreed to dissolve, with its assets going to approved charities

updated 3M ago

Court hearing scheduled for Rep. Chris Collins in insider trading case

The New York Republican, charged with insider trading, is accused of sharing information with his son about a biotech company in which he held the largest shares

updated 10M ago

Rep. Martha McSally appointed to finish McCain's term in Senate

McSally lost a race for the Senate in November to Democratic Rep. Krysten Sinema, but now both will head to the chamber

updated 36M ago

Michael Flynn to be sentenced – live updates

Flynn, the former national security adviser, is the highest-ranking member of the Trump administration to be sentenced in the Mueller probe

updated 31M ago

Denver may ban conversion therapy for minors

Denver City Council considers a proposal to ban the discredited practice that aims to change a LGBTQ person's sexual orientation, gender identity or expression

1H ago

U.K. to put troops on standby for no-deal Brexit "contingencies"

With a trade and customs deal with EU still seemingly out of reach as deadline nears, government warns businesses to be ready for disruption

updated 38M ago

Russia rejects damning reports on pro-Trump election meddling

Moscow issues oft-repeated flat denial of "any kind of interference" in U.S. politics as Senator warns it's "time to get serious in addressing this challenge"

2H ago

Neo-Nazi couple jailed for belonging to group banned in U.K.

All 6 found guilty of membership in National Action, a group banned under anti-terror laws for advocating "overthrow of democracy" by violence

2H ago

Ross from "Friends" lookalike faces arrest for skipping court

Abdulah Husseni, who looks an awful lot like David Schwimmer, was facing theft and fraud charges, now there's a warrant out for his arrest

3H ago

Yemen truce off to rocky start, but calm prevails on day 1

Ceasefire in port city of Hodeida – a vital port for the flow of desperately needed humanitarian aid – appears to hold after a violent start

1H ago

"Vice's" Christian Bale and Adam McKay chronicle Dick Cheney's rise to power

To play the former vice president, Bale shaved his head and packed on some 40 pounds

2H ago

Alfonso Ribeiro sues Fortnite over alleged use of "Carlton dance"

At around $5 per dance it's earned the game creators hundreds of millions of dollars

3H ago

Ray Rice says he doesn't want a second chance – he already got one

In February 2014, surveillance video showed the former Baltimore Ravens running back punching his fiancee in an elevator

2H ago

Kurt Russell, Goldie Hawn share Christmas photo

Hawn posted the picture on Instagram and wrote, "Never thought I'd be sleeping with Santa!"

17H ago

"The Dark Crystal" prequel reveals first look

Taron Egerton, Anya Taylor-Joy and Nathalie Emmanuel lead the voice cast

18H ago

How I tried and failed to quit Google

Technology experts explain why attempting to stop using one of the world's largest tech companies is so difficult – and possibly futile

updated 58M ago

New reports detail sophistication of Russian influence efforts in U.S.

Two new analyses this week portray a sprawling, multifaceted operation affecting millions of users in the U.S. and persisting long after the 2016 presidential election

20H ago

Google to spend $1B on major New York City expansion

The 1.7 million square-foot campus will help the tech giant double its New York City staff within a decade

16H ago

First of new fleet of GPS satellites set for launch

New generation is designed to be more secure and accurate but many new features won't be available until 2022 or later

2H ago

Colin Kroll, HQ Trivia and Vine co-founder, dies at 34

Colin Kroll, the CEO and co-founder of the popular HQ Trivia app, has died, the company said Sunday

Dec 16

How does federal judges' health insurance stack up?

With a federal court ruling that Obamacare is unconstitutional, here's a look at the kind of health coverage judges get

2H ago

Child abuse rises on day after Friday report cards, study shows

But no such trend noted on other days of week, and researchers could only speculate about the reason for the increases

6H ago

3 who got Legionnaires' disease in Wisconsin hospital die

University of Wisconsin Hospital says 10 others recovered and were released; blames outbreak on since-flushed hot water system

1H ago

David Begnaud on seeking "acceptance" for Tourette's

The CBS News correspondent recently revealed that he struggled with debilitating Tourette syndrome as a child

15H ago

Cuomo cites marijuana legalization in speech laying out priorities

Cuomo says the legalization of recreational marijuana and fixing New York City's subway system are among his top priorities for his third term

18H ago

Trump Foundation shutting amid probe into donations

New York's attorney general says Trump Foundation has agreed to dissolve, with its assets going to approved charities

updated 3M ago

How business owners can stand out amid market's noise

Entrepreneurs can build great products, but without a distinct brand, marketplace noise will drown them out.

updated 18M ago

Gary Cohn: Economy "strong," but U.S. has "huge debt problem"

This week marks one year since the passage of the Tax Cuts & Jobs Act, which reduced the corporate and individual tax rate

1H ago

America's cheese hoard at record 4.3 pounds per person

Massive inventories of unsold cheese, thanks in part to President Trump's trade war and shifting millennial tastes

2H ago

Fed rate moves for 2019: The suspense is building

With one more hike likely this week, the betting on what happens next year has plenty of wild cards in play

2H ago

Man in alleged GoFundMe scam could face jail on traffic charges

Mark D'Amico, his girlfriend and a homeless veteran allegedly concocted a good Samaritan story to scam donors

updated 48M ago

Teen caught on video attacking girl wearing hijab in school

Authorities in suburban Pittsburgh say they deem the bathroom incident bullying, not hate crime for now

updated 11M ago

Two Chicago police officers killed by train

Police said the officers were investigating a call of shots fired when they were hit by the passing train

6H ago

Statue of Liberty climber convicted in July 4 protest

Therese Okoumou testified she climbed the base of the statue to protest separation of families at the U.S-Mexico border

17H ago

Mother in viral video where NYPD take toddler speaks out

"I was so afraid. I was combative with my thoughts … I just remember being talked to very viciously," Jazmine Headley said Sunday

Dec 16