Trump Organization Settles Lawsuit Over Inauguration-Related DC Hotel Payments | Top news

NEW YORK (Reuters) – Donald Trump’s family business and his 2017 U.S. presidential inaugural committee will pay $750,000 to settle a lawsuit brought by the attorney general in Washington, DC, claiming the committee funneled excessive amounts of funds charities to the Trump International Hotel.

The payment represents nearly three-quarters of the $1.03 million that Attorney General Karl Racine said the nonprofit’s inaugural committee had “significantly” overpaid to rent event space at the hotel, including for a party private for Trump’s adult children the night Trump became president.

Both the Trump Organization and the committee have denied wrongdoing in agreeing to settle the January 2020 lawsuit.

“After his election, one of Donald Trump’s first actions was to illegally use his own nomination to enrich his family,” Racine said in a statement. “Nonprofit funds cannot be used to line the pockets of individuals, however powerful they may be.”

Trump was not a defendant. His family expects to soon sell the hotel, located several blocks southeast of the White House, to Miami investment firm CGI Merchant Group.

The hotel will be converted into a Waldorf Astoria, and Trump’s name will drop.

In light of the sale, “we have reached a settlement to end any litigation with Democratic Attorney General Racine,” Trump, a Republican, said in a statement provided by his company.

“This was yet another example of the militarization of law enforcement against the Republican Party and, in particular, against the former President of the United States,” Trump added. “Too bad for our country!

The $750,000 will go to two nonprofit organizations that support young people in Washington, D.C.

In November 2019, Trump paid $2 million to settle allegations by New York Attorney General Letitia James that he abused his eponymous charitable foundation.

She said it resulted in funds being used to advance her 2016 presidential campaign and paying for a $10,000 portrait of Trump, among other expenses.

James is leading a civilian investigation into the Trump Organization and said he found evidence that the values ​​of some assets had been wrong for more than a decade.

(Reporting by Jonathan Stempel in New York; Editing by Marguerita Choy)

Copyright 2022 Thomson Reuters.

Aubrey L. Morgan