Trump’s inaugural committee to pay $750,000 to settle lawsuit
DC Attorney General Karl A. Racine said the settlement allows the city to “recoup money” that Trump’s inaugural committee misused.
“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. “We refused to let this corruption continue. No one is above the law, not even a president. Nonprofit funds cannot be used to line the pockets of individuals, however powerful they may be. Now, all future Presidential Inaugural Committees are warned that they will not get away with such egregious actions.
Nonprofits such as Trump’s committee cannot use funds to give private benefits to their leaders. Trump was not officially an officer of the inaugural committee, but Racine asserted that for the purposes of the trial, Trump and his family should still be treated as its leaders because they exercised control over the books.
Racine’s office has identified two youth-focused DC nonprofits — Mikva Challenge DC and DC Action — that will each receive $375,000 through the settlement.
In city’s lawsuit, lawyers claim Trump organization and inaugural committee paid ‘highly inflated prices’ at hotel even after senior committee officials and members of the Trump family were warned that the charges were unreasonable. Committee payments, the lawyers argued in their filings, “flowed directly to the Trump family,” thereby ignoring committee bylaws that prohibited the use of its funds for private enrichment.
In court documents, the Trump Organization and the Inaugural Committee argued that the Trump Hotel was charging “market rate” for its spaces, consistent with its status as a luxury hotel near the White House.
Trump’s attorneys could not immediately be reached for comment on the settlement.
City attorneys also argued that Trump’s inauguration committee misused nonprofit funds by paying a $50,000 debt owed for Loews Madison hotel rooms for family and friends of Trump. Trump during inauguration week. The Trump Organization booked the rooms, the lawyers say, and then failed to pay the bill.
Trump’s lawyers had tried unsuccessfully to have the case dismissed.
A 2021 DC Superior Court judge dismissed part of the district’s lawsuit alleging Trump’s 2017 inaugural committee ‘wasted’ $1 million on the president’s hotel after determining the city could not prove that the misuse of funds was deliberate. But the judge also ruled that the rest of the lawsuit accusing the nonprofit’s assets of being misused could stand.