Judge fines Trump USD 2 million for misusing charity foundation
New York: A judge Thursday ordered President Donald Trump to pay USD 2 million to an array of charities as a fine for misusing his own charitable foundation to further his political and business interests.
New York state Judge Saliann Scarpulla imposed the penalty in connection with a lawsuit brought against Trump by the New York attorney general's office over the handling of the Trump Foundation's assets.
Among other things, the judge ruled that Trump improperly allowed his presidential campaign staff to work with the foundation in holding a fundraiser for veterans' charities in the run-up to the 2016 Iowa caucuses. The event was designed "to further Mr Trump's political campaign," Scarpulla said.
Last month, Trump's lawyers and the attorney general's office reached agreements to dissolve the foundation and distribute about USD 1.7 million in remaining funds to other nonprofits.
As part of those agreements, made public Thursday, Trump admitted personally misusing foundation funds. He and the attorney general's office further agreed to leave it up to the judge to decide what penalty he should pay.
The settlement was an about-face for Trump. He and his lawyers have blasted the lawsuit as politically motivated, and he tweeted, "I won't settle this case!" when it was filed in June 2018.
Trump's fine and the charity's funds will be split evenly among eight organisations, including City Meals-on-Wheels, the United Negro College Fund and the US Holocaust Memorial Museum.
Attorney General Letitia James welcomed the resolution of the case as a "major victory in our efforts to protect charitable assets and hold accountable those who would abuse charities for personal gain."
"No one is above the law not a businessman, not a candidate for office, and not even the President of the United States," said James, a Democrat.
The president admitted, among other things, to improperly arranging for the charity to pay USD 10,000 for a 6-foot portrait of him. He also agreed to pay back USD 11,525 in foundation funds that he spent on sports memorabilia and champagne at a charity gala.
Trump also agreed to restrictions on his involvement in other charitable organisations. His three eldest children, who were members of the foundation's board, must undergo mandatory training on the duties of those who run charities.
Charities are barred from getting involved in political campaigns, but in weighing the Iowa fundraiser, Scarpulla gave Trump credit for making good on his pledge to give USD 2.8 million of the money raised to veterans' organisations.
Instead of fining him that amount, as the attorney general's office wanted, the judge trimmed it to USD 2 million and rejected a demand for punitive damages and interest.
The Trump Foundation said it was pleased by those decisions, claiming that the judge "recognised that every penny ever raised by the Trump Foundation has gone to help those most in need."
Trump Foundation lawyer Alan Futerfas said the nonprofit has distributed approximately USD 19 million over the past decade, including USD 8.25 million of the president's own money, to hundreds of charitable organisations.
At the time of the Iowa fundraiser, Trump was feuding with then-Fox News anchor Megyn Kelly and refusing to participate in the network's final Republican presidential primary debate before the Iowa caucuses.
Instead, he held a rally at the same time as the debate at which he called on people to donate to veterans' charities. The foundation acted as a pass-through for those contributions.
James said the evidence of banned coordination between campaign officials and the foundation included emails exchanged with then-Trump campaign manager Corey Lewandowski.
In one email, a Trump company vice president asked Lewandowski for guidance on precisely how to distribute the money raised.
Trump also admitted in the agreements to directing that USD 100,000 in foundation money be used to settle legal claims over an 80-foot flagpole he had built at his Mar-a-Lago resort in Palm Beach, Florida, instead of paying the expense out of his own pocket.
In addition, the foundation paid USD 158,000 to resolve a lawsuit over a prize for a hole-in-one contest at a Trump-owned golf course, and USD 5,000 for ads promoting Trump's hotels in the programs for charitable events.
Trump admitted these transactions were also improper. As part of the settlement, Donald Trump Jr. reimbursed the Trump Foundation for the cost of the portrait.
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Satyagraha sparks political storm in Kerala as CM accuses Centre of financial squeeze
Thiruvananthapuram (PTI): Kerala saw a heated political showdown on Monday as state ministers led by Chief Minister Pinarayi Vijayan took to the streets with a Satyagraha, accusing the BJP-led Centre of squeezing the state financially.
What followed was a war of words, with the BJP hitting back hard and the Congress keeping its distance, turning the issue into a three-cornered political battle.
Standing before party leaders, ministers and supporters at the Martyrs' Column in Palayam here, Vijayan said Kerala had been pushed into an "extraordinary struggle" to protect its rights.
He told the gathering that the Centre was trying to "snatch away" what the Constitution had guaranteed to the states.
According to him, this was not just about money, but about dignity, federalism and democracy.
"This is a struggle for the survival of this land and its people. Believing that all authority rests in their hands, the rulers at the Centre are arbitrarily usurping our rights," Vijayan said, a day after Union Home Minister Amit Shah claimed that the funds given to the state during the NDA period were more than three times higher than what it received during the Congress-led UPA period.
"The present situation has compelled us to take to struggle in order to protect those rights. This is an extraordinary and grave circumstance," the veteran CPI(M) leader said.
He said the Union government was treating Kerala with bias and political vengeance.
The cuts in grants and borrowing limits, he claimed, were meant to choke the state financially.
Vijayan pointed out that Kerala was supposed to get Rs 12,000 crore between January and March, but was denied Rs 5,900 crore without any clear reason. This, he said, had made it difficult for the government to pay bills and run welfare schemes smoothly.
The CM also accused the Union government of centralising power and using money to reward states ruled by friendly parties while punishing opposition-ruled states like Kerala.
He reminded the people of how Kerala was denied permission to receive foreign aid during the 2018 floods and how support was lacking after the Wayanad landslide. These were, Vijayan said, clear examples of discrimination.
Rejecting claims of financial mismanagement, he said the state had continued to invest in welfare, development and jobs despite financial pressure.
Taking on Amit Shah's claim that Kerala received more funds under the Modi government, Vijayan said tax devolution was not a gift, but a constitutional right. He accused the Centre of interfering with the Finance Commission and quoted NITI Aayog CEO B V R Subrahmanyam.
"Subrahmanyam, who is currently serving as the CEO of NITI Aayog, has stated that soon after becoming Prime Minister in 2014, Narendra Modi exerted pressure on the Finance Commission to reduce the tax share of states," he said.
The chief minister said the Finance Commission had recommended 42 per cent for states and that there was an attempt to cut it to 33 per cent. He added that the Prime Minister had not denied this claim.
"When Amit Shah cites figures, he must also clarify these facts. Perhaps realising that none of this can be defended, he has now resorted to dreaming about a distant future," he said.
Calling for wider protests, Vijayan said Kerala would fight legally and politically to protect federalism and ensure its rightful share. He also criticised the Congress-led UDF for not standing with the state at this crucial time.
But the BJP hit back almost immediately. State BJP president Rajeev Chandrasekhar said the Left government was trying to fool the public.
He said a government that had ruled for nearly 10 years had no excuse to shift blame.
"A government that has ruled for 10 years should explain what it has done for the people. That is the basic courtesy in a democracy," Chandrasekhar told a press conference here.
He challenged Vijayan to a public debate on governance and finances. He claimed that Kerala received Rs 72,000 crore during UPA rule, but Rs 3.2 lakh crore under the NDA.
He argued that nearly Rs 7 lakh crore had come through central assistance and borrowings in the last decade, and over Rs 10 lakh crore including revenue receipts.
Chandrasekhar said central schemes worth Rs 16,000 crore were not implemented and pointed to water shortages, unpaid contractors and homelessness.
Meanwhile, the Congress-led UDF chose not to join the protest.
Opposition leader V D Satheesan said his party would not be part of what he called political drama by the LDF.
He alleged an "unholy understanding" between the CPI(M) and the BJP and said the Left was pretending to fight the Centre while quietly supporting its policies.
"If we participate in such protests, we too will lose credibility," he said.
Later in a post on X, Vijayan said Kerala's share in tax devolution, grants and scheme funds have been reduced.
"We have suffered a total revenue loss of Rs 57,000 crores due to the Union Government’s financial discrimination against us."
He said the state was merely demanding what is rightfully owed to it, not any handout from the Union Government.
"Kerala stands firm in its resolve and will resist every attempt to subvert states' constitutional rights," Vijayan said.
