Trump Organization reinstated as defendant in DC AG v. Trump Inaugural Committee case

DC Superior Court Judge Yvonne Williams reversed an earlier ruling on Monday to dismiss the case against Trump’s company. On Thursday, the court is expected to set a trial schedule.

In the case, DC Attorney General Karl Racine accuses Trump’s 2017 Presidential Inaugural Committee of misappropriating nonprofit funds to pay for event space at the Trump Hotel and other dealings. . Racine also alleges that the committee paid a debt owed by the Trump Organization.

A spokesperson for Racine said in a statement that “the case will now proceed to trial fully intact as originally brought” and “full steam ahead.”

The legal troubles at Trump’s namesake company come a day after revelations that the former president’s longtime accounting firm had told the firm it should no longer rely on nearly 10 years of statements. financiers and that society would no longer be its accountants.
Williams said in an opinion Monday that the judge who previously ruled in favor of dismissing the case against the Trump Organization erred. The previous dismissal ruling, which was issued in November by Judge Jose Lopez, was based on Racine’s failure to file two Donald Trump Jr. associates, Gentry Beach and Lindsay Santoro. But, Williams acknowledged on Monday, Racine’s request for an additional discovery that covered those two associates had yet to be decided.

Williams said “it was wrong for the court to rule against the district based on the district’s failure to file or otherwise obtain the discovery of Mr. Beach and Ms. Santoro, while the court stayed its decision on the district’s request to conduct this very discovery.”

Williams said the court will rule on the discovery claims at Thursday’s hearing. And in her view on Monday, she left the door open for the Trump Organization to try again later in the proceedings to get a ruling in her favor before a trial.

The Trump Organization did not respond to CNN’s request for comment.

Beach signed a contract involving a large block of rooms reserved for people affiliated with the Trump Organization at the Loews Madison Hotel during inauguration week. Santoro, Trump Jr.’s personal assistant, was listed as the point of contact for Chambers.

The November order dismissing the Trump Organization from the case cited a lack of evidence that Beach had been authorized by the company to negotiate the contract.

The inaugural committee was not a party to the contract, the attorney general said in a court filing last year. But after the Trump Organization failed to pay the bill, a collection agency contacted senior committee official Rick Gates, who then forwarded the bill to people working on inauguration finances, the documents show. of the Attorney General’s Court. The committee ultimately paid the $50,000 debt, Racine claimed in the case.

In the case, the DC Attorney General alleges that the use of Inaugural Committee funds for this transaction, and for payments to the Trump Hotel that Racine describes as inflated, violates DC laws on purposeful spending. non-profit.

CNN’s Jessica Schneider and Kara Scannell contributed to this report.

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