New York Attorney General Barbara Underwood on Thursday filed a lawsuit against President Donald Trump, his charity, and his children Donald Jr., Eric, and Ivanka, alleging that the Trump Foundation followed "a pattern of persistent illegal conduct" for more than a decade.
The president is accused of using the charitable assets of the foundation to "pay off his legal obligations, to promote Trump hotels and other businesses, and to purchase personal items". The suit seeks $2.8 million in restitution and the dissolution of the foundation.
The lawsuit was filed with the New York State Supreme Court in Manhattan.
"I won't settle this case!" he said.
Also named in the suit were Mr Trump's two sons, Eric and Donald Jr.
The lawsuit says the foundation illegally helped support the Republican's campaign by raising money at a nationally televised fundraiser in January 2016, then allowing campaign staffers to dictate how the money was spent in grants.
"The Trump Foundation also entered into at least five self-dealing transactions that were unlawful because they benefitted Mr Trump or businesses he controls", the attorney general's office added.
Underwood was promoted to attorney general a fews weeks ago, succeeding Schneiderman after he resigned following allegations that he had physically abused several romantic partners.
"The president added: ".Schneiderman, who ran the Clinton campaign in NY, never had the guts to bring this ridiculous case, which lingered in their office for nearly 2 years. "Now he resigned his office in disgrace, and his disciples brought it when we would not settle". She's seeking to ban Trump from serving as a director of a NY not-for-profit for 10 years.
Trump has already paid more than $330,000 in reimbursements and penalty taxes, Underwood said in the suit.
The foundation pressed the NY attorney general to withdraw the lawsuit so that it could dissolve and make remaining donations it proposed as a part of that plan. The board, though, had not met since 1999, and Underwood asked that the Trump children be banned from serving as director of any NY nonprofits for a year.