D.C. sues Trump organization, alleging inflated inaugural party bills
President Donald Trumps inaugural committee and his private business empire were hit with a lawsuit Wednesday alleging that his luxury hotel in Washington illegally received more than $1 million from inauguration-related event space rentals that were grossly overpriced and in some cases not even used.
The suit filed by District of Columbia Attorney General Karl Racine alleges that citys laws governing nonprofit organizations were violated when the Trump International Hotel charged the Presidential Inaugural Committee inflated prices to use ballrooms and other spaces during the festivities surrounding Trumps swearing-in three years ago.
In a conference call announcing the suit, Racine accused the committee, the Trump Organization and the hotel of blatantly and unlawfully abusing nonprofit funds to enrich the Trump family.
While donations to the inaugural committee were not tax deductible, the organization was a nonprofit and received tax advantages from that status, the D.C. attorney general added.
Nonprofits are unique entities that function as public trusts, said Racine, who is trying to recover the money from the Trump businesses so it can be put to public benefit. The committee has a legal responsibility to avoid unreasonable, wasteful expenses, he said.