OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NEW YORK STATE DEPARTMENT OF LAW - CHARITIES BUREAU

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3 OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NEW YORK STATE DEPARTMENT OF LAW - CHARITIES BUREAU J. WHITFIELD LARRABEE ) Complainant ) ) v. ) COMPLAINT ) DONALD J. TRUMP, ERIC F. TRUMP, THE ) ERIC TRUMP FOUNDATION, DONALD J. ) TRUMP FOUNDATION, INC., THE TRUMP ) ORGANIZATION, INC. AND TRUMP ) NATIONAL GOLF CLUB LLC ) Defendants ) ) INTRODUCTION 1. This complaint is based upon probable cause to believe that the defendants committed larceny by embezzlement, engaged in a scheme to defraud and otherwise violated the laws of New York. The defendants have used their enormous wealth and exceptional privilege to violate the democratically enacted laws of New York. Enforcing the law fairly and equally against the defendants is vitally important to maintain respect for the law and protect the democratic institutions of New York and of the United States. It is particularly important that President Trump be required to respond to the charges made in this complaint because the people of New York and of the United States have a vital interest in being served by honest and law abiding public officials. This interest is not served if a wealthy and powerful official is able to commit crimes and other violations of the law with impunity. The complainant requests that the Attorney General of New York obtain criminal indictments against the individual defendants and that he initiate a civil action to force the defendants to pay damages for the losses that have resulted from the defendants unlawful actions. 2. There is substantial evidence that the defendant Donald J. Trump and Eric F. Trump participated criminal activity involving larceny by embezzlement and a scheme to defraud in which they diverted charitable funds and property donated to support the St. Jude Children's Research Hospital and used the funds for the private benefit of themselves individually and for the private benefit of their for-profit companies. 1 St. Jude is a charity that specializes in pediatric cancer treatment. There is probable cause to believe that Eric Trump and Donald Trump falsely, fraudulently and publicly claimed that virtually all of contributions to The Eric Trump Foundation and the Donald J. Trump Foundation would be used for charitable purposes and for appropriate expenses - not for their own private 1 See, Dan Alexander, How Donald Trump Shifted Kid s-cancer Charity Money Into His Business, Forbes, June 6, 2017 (forbes.com).

4 enrichment. In reliance on the defendants representations, the public contributed many millions of dollars to The Eric Trump Foundation and The Donald J. Trump Foundation. Donald J. Trump repeatedly enriched himself and his businesses by plundering money and property from the Donald J. Trump Foundation and The Eric Trump Foundation. PARTIES 3. Complainant, J. Whitfield Larrabee, is a resident of Massachusetts and is a licensed attorney. 4. Defendant Donald J. Trump is a resident of New York. At all relevant times, he was President of The Donald J. Trump Foundation. 5. Defendant, the Donald J. Trump Foundation is a New York corporation, charity and nonprofit with section 501(c)(3) status. 6. Defendant Erik F. Trump is a resident of New York. At all relevant times, he was Chairman of the Board and President of The Eric Trump Foundation. 7. Defendant, The Eric Trump Foundation, is a New York corporation, public charity and non-profit with section 501(c)(3) status. 8. Defendant, The Trump Organization, Inc. is a for-profit holding company owned and operated by Donald J. Trump, Eric F. Trump and Donald Trump, Jr.. 9. Defendant, Trump National Golf Club LLC owns or operates the Trump National Golf Club in Briar Cliff, Westchester County, New York. The Trump National Golf Club LLC is part of The Trump Organization. FACTS 10. Donald J. Trump and the Donald J. Trump Foundation have engaged in a pattern of self dealing by inappropriately using foundation funds for the private benefit of Donald Trump and his companies. For example, in 2007, Donald Trump used $158,000 in funds of the Donald Trump Foundation to settle a 2006 legal dispute between the Town of Palm Beach, Florida, and Trump's Mar-a-Lago country club. Also in 2007, the Donald Trump Foundation paid $20,000 on behalf of Melania Trump to purchase a six foot tall painting of Donald Trump. The painting was then shipped to the Trump National Golf Club in Briarcliff Manor, NY where it was displayed in the club s boardroom or conference room. This privately benefitted Trump and his company. There is probable cause to believe that Donald Trump embezzled the portrait from the Donald J. Trump Foundation. In 2013, funds from the foundation were illegally used for political purposes when $25,000 was contributed to Florida Attorney General Pamela Bondi. Trump agreed to pay $2,500 in excise tax after a complaint concerning the illegal contribution was filed 2

5 with the United States Internal Revenue Service. The payment to Bondi involved a private benefit for Donald Trump. There is probable cause to believe that the $25,000 paid to Bondi was embezzled from the Donald J. Trump Foundation. 11. Additional information has recently come to light that demonstrates activities by Donald Trump and Eric Trump where they have taken private benefits from foundation funds and/or have engaged in illegal self-dealing. 12. A primary mode of fund-raising for The Eric Trump Foundation was the Eric Trump golf tournament and fund-raiser held at the Trump National Golf Club in Briar Cliff, NY. 13. Eric Trump repeatedly represented to donors of The Eric Trump Foundation and to the public that The Trump Organization provided the golf course and club for free and that the donated goods and services assured donors that every penny possible went to charity. Through 2017, Eric Trump claimed that the Eric Trump Foundation used the golf courses and other assets of the Trump Organization 100% free of charge. In January of 2014, Eric Trump assured donors, We are committed to using only Trump owned and operated facilities, full-time volunteers, donated food & beverage products, as well as pro-bono celebrity performers, so that St. Jude receives nearly 100% of the monies raised. 2 Contrary to Eric Trump s promises, much of the monies raised did not go to St. Jude. Between January, 2011 and December, 2016, more than $500,000 was given to charities other than St. Jude. Many of these charities did business with The Trump Organization. Further, because substantial payments were made to The Trump Organization, in violation of the promises and representations made by Eric Trump, St. Jude received substantially less than 90% of the monies raised in several years. As much as $1.2 million dollars was paid to The Trump Organization from 2011 to 2016 for reasons that have not been fully, adequately or properly disclosed. 14. During the years from 2011 to 2015, more than ten persons donated to The Eric Trump Foundation in reliance on the representations of Eric Trump that the use of the Trump Organization s golf club and course were free and that every penny possible went to the charity. 15. From 2011 through at least 2015, The Eric Trump Foundation paid money to The Trump Organization, possibly for use of the golf course and club at the request of Donald Trump. 16. In 2011, The Donald Trump Foundation donated $100,000 to the Eric Trump Foundation. At the request of Donald Trump, this money was then paid to The Trump Organization, possibly for use of the golf club and course. The fair market value for use 2 Welcome page to the Eric Trump Foundation website for January 6, 2014, preserved at the web archive, 3

6 of the golf club and course was not as much as $100,000. Donald Trump and Eric Trump conspired and agreed to misappropriate the $100,000 given by the Donald Trump Foundation to The Eric Trump Foundation and to privately benefit from them by paying the funds to The Trump Organization. The Trump Organization profited from the fundraising of The Eric Trump Foundation in 2011 to the detriment of St. Jude and the donors. The Eric Trump Foundation functioned as profit-making arm of The Trump Organization beginning at least as early as 2011 and continuing through at least Charitable money from the Donald Trump Foundation was laundered through The Eric Trump Foundation and ended up in the coffers of The Trump Organization. 17. From 2011 through 2016, hundreds of thousands of dollars were misappropriated and paid to The Trump Organization by The Eric Trump Foundation, possibly for use of the golf course and club and/or for other claimed services. The funds were paid to The Trump Organization by The Eric Trump Foundation with the knowledge and participation of Eric Trump and Donald Trump. The Trump Organization profited from the fundraising of The Eric Trump Foundation from 2013 to 2015, to the detriment of St. Jude and donors to The Eric Trump Foundation. The payments to The Trump Foundation during this time period were made in violation of the promises and representations that Eric Trump made to the public and to donors. Eric Trump took money from The Eric Trump Foundation and paid it to Trump family businesses in amounts that were excessive resulting in the illegal conversion of charitable funds. 18. Donald Trump and Eric Trump each abused their positions as fiduciaries of The Donald Trump Foundation and the Eric Trump Foundation by expending charitable funds in exchange for private benefits for The Trump Organization. 19. Eric Trump gave charitable funds of The Eric Trump Foundation to other charities that did not share the mission of The Eric Trump Foundation. In exchange, charities that received payments from The Eric Trump Foundation agreed pay money to and do business with The Trump Organization. 20. In 2012, The Eric Trump Foundation sent $5,000 to a charity called Abilis, which provides services to people with disabilities. That same year, Donald Trump's nephew Fred Trump, whose son has cerebral palsy, hosted the inaugural Golf for Abilis fundraiser at the Trump National Golf Club in Westchester, NY. Over the next five years, Abilis spent an estimated $240,000 hosting tournaments at the property. Alibis is unconnected to St. Jude. 21. In 2013 and 2014, the Eric Trump Foundation paid $15,000 for tables at a gala for the Little Baby Face Foundation. Over the next three years, Little Baby Face spent an estimated $100,000 at the Trump National Golf Club in Westchester, NY. Little Baby Face Foundation is unconnected to St. Jude. 4

7 22. In 2012, The Eric Trump Foundation wrote a check for $25,000 to the George Rodrigue Foundation of the Arts. That same year, George Rodrigue, who had said that his famous "blue dog" paintings sometimes sold for about $25,000, created a portrait of Donald Trump for an auction put on by The Eric Trump Foundation. That portrait was not auction off for the benefit of St. Jude. The portrait was hung over the couch in Eric Trump's house. Eric Trump was photographed sitting beneath it in his house two years later. The acquisition of the portrait did not further the mission of The Eric Trump Foundation to help children nor did it support St. Jude s Children s Research Hospital as Eric Trump promised and represented to donors. The portrait was entrusted to Eric Trump as Chairman of the Board and President of The Eric Trump Foundation. Eric Trump privately benefitted from the portrait and converted it to his own personal use. The George Rodrigue Foundation of the Arts is unconnected to St. Jude. There is probable cause to conclude that Eric Trump engaged in embezzlement by taking the portrait as his own possession after it was entrusted to him as President of The Eric Trump Foundation. 23. In 2013, The Eric Trump Foundation purchased a copper wine still and an antique bottle washer from the American Society for Enology & Viticulture for $1,600 at a fund-raising event. The expenditure was not in furtherance of the mission of The Eric Trump Foundation - to help the St. Jude Children's Research Hospital. However, Eric Trump runs the Trump family vineyard in Charlottesville, Virginia. The vineyard is about an hour drive from where the fund-raising event took place. The acquisition of the wine still and antique bottle washer did not benefit children or any charitable purpose and were a misappropriation of charitable funds for the private benefit of Eric Trump and the Trump family. There is probable cause to conclude that Eric Trump engaged in embezzlement by taking the copper wine still and an antique bottle washer as his own possession after it was entrusted to him as President of The Eric Trump Foundation. COUNT 1 LARCENY BY EMBEZZLEMENT 24. The allegations in the preceding paragraphs are incorporated by reference as if fully set forth herein. 25. Under the law of New York, "[t]he essence of the crime of larceny by embezzlement is the conversion by the embezzler of property belonging to another which has been entrusted to the embezzler to hold on behalf of the owner." People v. Valenza, 60 NY 2d 363, 368 (New York, Court of Appeals 1983). 5

8 26. There is probable cause to conclude that during the time period from 2011 to 2015, Donald Trump and Eric Trump, misappropriated, stole and converted money and property entrusted to them as officers of the Donald Trump Foundation and The Eric Trump Foundation by taking money and property for their own private use and by improperly and illegally paying money to their businesses and to The Trump Organization. In doing so, they each committed the crime of larceny by embezzlement. COUNT 2 SCHEME TO DEFRAUD 27. The allegations in the preceding paragraphs are incorporated by reference as if fully set forth herein. 28. Under the law of New York, a person is guilty of a scheme to defraud when "he... engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud ten or more persons or to obtain property from ten or more persons by false or fraudulent pretenses, representations or promises, and so obtains property from one or more of such persons" N.Y. Penal Law (1) (a). 29. There is probable cause to conclude that Donald Trump and Eric Trump participated in a scheme to defraud donors to The Eric Trump Foundation in violation of N.Y. Penal Law (1) (a). COUNT 3 MISAPPROPRIATION & CONVERSION 30. The allegations in the preceding paragraphs are incorporated by reference as if fully set forth herein. 31. Donald J. Trump, Eric F. Trump and The Trump Organization misappropriated and converted the charitable property of The Donald J. Trump Foundation, Inc. and The Eric Trump Foundation for their own private benefit. COUNT 4 BREACH OF FIDUCIARY DUTY 32. The allegations in the preceding paragraphs are incorporated by reference as if fully set forth herein. 6

9 33. By making false statements, by personally/privately profiting and benefitting from their use of charitable funds and property, by self-dealing, by improperly diverting charitable funds to The Trump Organization, by diverting funds to political uses, by expending funds to benefit their family and businesses contrary to their duties as trustees and fiduciaries of the funds of The Donald J. Trump Foundation, Inc. and The Eric Trump Foundation, by in fraud and false representations, the defendants Donald J. Trump and Eric F. Trump committed breaches of their fiduciary duties. WHEREFORE, the complainant demands: A. a full, fair and impartial investigation; B. presentation of the relevant evidence to a New York grand jury: C. indictments of the defendants for violations of the New York Penal Code; D. judgements and orders against defendants for fines, damages and restitution, and, E. such other relief as is just, lawful, equitable or proper. Respectfully submitted, J. Whitfield Larrabee Law Office of J. Whitfield Larrabee 251 Harvard Street, Suite 9 Brookline, MA jwlarrabee@verizon.net (617) BBO # CERTIFICATE OF SERVICE AND FILING I, J. Whitfield Larrabee, hereby certify that on June 12, 2017, I filed this complaint with the Attorney General for the State of New York, New York State Department of Law, Charities Bureau via ing the same to charities.bureau@ag.ny.gov, and further by mailing a duplicate to Honorable Eric T. Schneiderman, Attorney General for the State of New York, New York State Department of Law, Charities Bureau, 120 Broadway - 3rd Floor, New York, NY and by mailing to a duplicate to Office of the Attorney General, The Capital, Albany, NY J. Whitfield Larrabee 7

ALAN G. HEVESI, : Defendant. : DEPUTY CHIEF INVESTIGATOR GREGORY J. STASIUK of the Office of

ALAN G. HEVESI, : Defendant. : DEPUTY CHIEF INVESTIGATOR GREGORY J. STASIUK of the Office of NEW YORK CITY CRIMINAL COURT NEW YORK COUNTY - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X THE PEOPLE OF THE STATE OF NEW YORK : -against- : ALAN G. HEVESI, : FELONY COMPLAINT