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Columbia's Attorney General sued Trump's Inaugural Committee over abusing nonprofit funds.

Attorney General Racine filed a lawsuit against the 58th Presidential Inaugural Committee for abusing nonprofit funds to enrich the Trump family.

Attorney General Racine filed a lawsuit against the 58th Presidential Inaugural Committee for abusing nonprofit funds to enrich the Trump family.Columbia's Attorney General, Karl A. Racine, said the committee, which organized Mr. Trump's January 2017 inaugural celebration, vastly overpaid to use ballrooms and meeting rooms at the Trump International Hotel near the White House. Office of the Attorney General (OAG) alleges that the Inaugural Committee coordinated with the Trump family to overpay for event space in the Trump International Hotel grossly. Although the Inaugural Committee was aware that it was paying far above market rates, it never considered less expensive alternatives. It paid for space on days when it did not hold events.

The inaugural committee raised a record of $107 million to celebrate Mr. Trump's swearing-in. In all, it paid the Trump hotel about $1.5 million for guest rooms, meals, and access to ballrooms and meeting areas.

A spokesman for the inaugural committee in a statement said that the allegations were baseless. The committee maintained that its finances were independently audited, and they 'operated in compliance with the law,' adding that the suit reads 'more like a partisan press release than a legal filing.'

OAG is asking the court to impose a constructive trust over the amount improperly paid to the Trump Hotel. The court can then direct this money to suitable nonprofit entities dedicated to promoting civic engagement.

Federal prosecutors, as well as local authorities in New York and New Jersey, have also been scrutinizing the committee's finances over the past year.

There have been no further developments in this case.

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