Trump Foundation to be dissolved amid financial irregularities

The Trump Foundation, a charitable organisation started by United States President Donald Trump, is set to be dissolved under judicial supervision amid an ongoing civil lawsuit pertaining to its finances.

An agreement signed by both the foundation and New York state Attorney General Barbara Underwood's office stated that Trump and his children flouted campaign finance laws and breached its tax-exempt status, CNN reported.

"Our petition detailed a shocking pattern of illegality involving the Trump Foundation -- including unlawful coordination with the Trump presidential campaign, repeated and willful self-dealing, and much more. This amounted to the Trump Foundation functioning as little more than a chequebook to serve Mr Trump's business and political interests," Underwood said in a statement on Tuesday.

"This is an important victory for the rule of law, making clear that there is one set of rules for everyone. We'll continue to move our suit forward to ensure that the Trump Foundation and its directors are held to account for their clear and repeated violations of state and federal law," Underwood added.

The legal proceedings will continue as it also seeks two other outcomes -- USD 2.8 million in restitution, additional penalties, and barring Trump and his three eldest children serving on the board of any other New York non-profit organisation, as per the news report.

The agreement also allows the Attorney General's office to assess the recipients of Trump Foundation's assets. Most recently, the recent tax return filed by the organisation was listed at slightly over USD 1.7 million.

The judge overseeing the proceedings should first approve the conditions for it to go into effect and will oversee the dissolution of Trump Foundation. This comes after Justice Saliann Scarpulla permitted the lawsuit to move forward, dismissing a plea by the organisation to annul the case last month.