Trump Foundation to shut down amid lawsuit against the charity

The lawsuit was filed by New York Attorney General Barbara Underwood, who accused the foundation of "a shocking pattern of illegality" that was "willful and repeated" and included self-dealing and unlawful coordination with Trump's 2016 presidential campaign.

"This is an important victory for the rule of law, making clear that there is one set of rules for everyone", she said in a statement.

The Trump Foundation-the president's philanthropic organization, which he allegedly treated more like a personal pocketbook than a charity-will dissolve pursuant an agreement signed by the Foundation's attorney. The lawsuit remains ongoing, seeking $2.8 million in restitution and to ban Trump and his children from serving on the boards of other NY nonprofits.

President Donald Trump's titular foundation is dissolving amid legal action.

Tuesday's agreement was reached after a NY judge last month rejected arguments from the foundation's lawyers that the lawsuit was politically motivated and should be thrown out. The deal is subject to approval by a NY state judge. Over time, his reporting turned up more evidence that the Trump Foundation was in violation of numerous laws.

The agreement resolved one part of the legal drama surrounding Trump, whose campaign, transition, inauguration and real estate empire are all under investigation. It also is still seeking $2.8 million in restitution.

Tuesday's decision came less than a month after Justice Saliann Scarpulla of the New York State Supreme Court in Manhattan rejected Trump's motion to dismiss Underwood's lawsuit.

The charity's official treasurer, Trump Organization executive Allen Weisselberg, told investigators that he wasn't aware he was on the board at all.

The lawsuit alleged that during the 2016 campaign, Trump received more than $2m at a fundraiser in Iowa and the money went to his foundation.

We've been telling you for a year and a half about how Donald Trump used charity as a way to take money from people trying to do some good in the world and put it right in his pocket instead.

There are far smaller donations, like a $7 gift to the Boy Scouts in 1989.

State investigators asked Weisselberg what the foundation's policies were to determine whether its payments were proper. Given that The Washington Post's David Fahrenthold won a Pulitzer for exposing the rampant corruption known as the Trump Foundation, it was likely a futile effort to expose the organization to more scrutiny. Federal law prohibits using charity money for personal gain. The petition alleges that those funds raised from the public were used to promote Mr Trump's campaign for the presidency, in particular in the Iowa nominating caucuses.