The alleged illegal conduct spans over a decade, according to the New York Attorney General's office. It includes "extensive unlawful political coordination with the Trump presidential campaign, repeated and willful self-dealing transactions to benefit Mr. Trump’s personal and business interests, and violations of basic legal obligations for non-profit foundations", the office said.
The Donald J. Trump Foundation "was little more than a checkbook for payments from Mr. Trump or his businesses to nonprofits, regardless of their purpose or legality," New York Attorney General Barbara Underwood said in a statement announcing the suit.
"This is not how private foundations should function and my office intends to hold the Foundation and its directors accountable for its misuse of charitable assets," she said.
According to the suit, the foundation raised more than $2.8 million for the Trump campaign at a January 2016 nationally televised fundraiser.
Underwood is seeking to dissolve the foundation and obtain restitution of $2.8 million in addition to other penalties.
Trump quickly slammed the suit using Twitter, his favorite communication platform.
"The sleazy New York Democrats, and their now disgraced (and run out of town) A.G. Eric Schneiderman, are doing everything they can to sue me on a foundation that took in $18,800,000 and gave out to charity more money than it took in, $19,200,000. I won’t settle this case!" Trump fumed.
"Schneiderman, who ran the Clinton campaign in New York, never had the guts to bring this ridiculous case, which lingered in their office for almost 2 years. Now he resigned his office in disgrace, and his disciples brought it when we would not settle," he added.