The Trump Organization agreed to pay Washington D.C. $750,000 on Tuesday to settle a lawsuit that claims the organization misused nonprofit funds.
The committee "improperly spent nonprofit funds" for former President Donald Trump's inauguration on events at the Trump Hotel, alleged the lawsuit filed with the Superior Court of the District of Columbia in 2020 against the Trump Organization, the Trump Hotel, and the 58th Presidential Inaugural Committee. The defendants reached the settlement with Washington D.C.'s Attorney General Karl Racine "with absolutely no admission of liability or guilt," Trump said in a statement the organization shared with the Washington Examiner.
"As crime rates are soaring in our Nation's Capital, it is necessary that the Attorney General focus on those issues rather than a further leg of the greatest Witch-Hunt in political history," Trump's statement read. "This was yet another example of weaponizing Law Enforcement against the Republican Party and, in particular, the former President of the United States. So bad for our Country!"
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Trump also referenced "the impending sale" of the Trump Hotel, which was put up for sale for $375 million in November 2021, in his statement. The Trump Hotel is in the process of selling its interest to a third party with an expected closing date this spring, the lawsuit states.
The 58th Presidential Inaugural Committee's insurance company paid $350,000 in its portion of the settlement, a PIC official told the Washington Examiner. The committee "remains confident" it would have prevailed if the case had gone to trial, a statement from Lee Blalack, counsel for the Inaugural Committee, said.
“While the Attorney General sought no monetary damages from the PIC, the PIC and its insurer determined that settlement was prudent simply to avoid the significant costs of litigating these baseless allegations through trial," Blalack's statement read. "Indeed, it would have required the PIC’s insurer to spend double the amount of this insurance settlement just to try this case to verdict, and thus this modest settlement payment only makes common sense."
In settling the lawsuit, Racine warned people on social media that "if you violate DC nonprofit law—no matter how powerful you are—you'll pay."
"In the District, we’re committed to ensuring that corruption comes at a cost," Racine said. "That should be clear to everyone, including future presidents."
In the District, we’re committed to ensuring that corruption comes at a cost. That should be clear to everyone, including future presidents.— AG Karl A. Racine (@AGKarlRacine) May 3, 2022
Read the agreement here: https://t.co/kpB350yGw2
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The $750,000 will be split between two nonprofit organizations in Washington D.C., with one $375,000 donation going to Mikva Challenge and the other to DC Action for Children.