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D.C. attorney general sues Trump Organization and inaugural committee

Photo: Bill O'Leary/The Washington Post via Getty Images

D.C. Attorney General Karl Racine filed a lawsuit against President Trump's inaugural committee and business Wednesday, claiming that the committee "abandoned" its purpose as a nonprofit by improperly overpaying to book event space at Trump's D.C. hotel.

The big picture: The lawsuit alleges the committee coordinated with the Trump family to "grossly overpay" for event space in the hotel without considering other venues. The committee allegedly ended up paying a total of $1 million for the space, including on days it wasn't used.

What they're saying: "District law requires nonprofits to use their funds for their stated public purpose, not to benefit private individuals or companies," Racine wrote. "In this case, we are seeking to recover the nonprofit funds that were improperly funneled directly to the Trump family business."

The Trump Organization responded with the following statement, per the Washington Post:

"The AG's claims are false, intentionally misleading and riddled with inaccuracies. The rates charged by the hotel were completely in line with what anyone else would have been charged for an unprecedented event of this enormous magnitude and were reflective of the fact that hotel had just recently opened, possessed superior facilities and was centrally located on Pennsylvania Avenue. The AG's after the fact attempt to regulate what discounts it believes the hotel should have provided as well as the timing of this complaint reeks of politics and is a clear PR stunt."

Go deeper: Trump Organization considers sale of flagship D.C. hotel

Go deeper

Jonathan Swan
16 mins ago - Politics & Policy

Scoop: CIA director Gina Haspel almost resigned over plan to Kash Patel as deputy

Photo: Win McNamee/Getty Images

CIA Director Gina Haspel almost resigned in early December after President Trump cooked up a hasty plan to install loyalist Kash Patel, a former aide to Rep. Devin Nunes (R-Calif.), as her deputy, according to three senior administration officials with direct knowledge of the matter.

Why it matters: The revelations stunned national security officials and almost blew up the leadership of the world's most powerful spy agency. Only a series of coincidences — and last minute interventions from Vice President Mike Pence and White House Counsel Pat Cipollone — stopped it.

Go deeper (3 min. read)Arrow
Axios
Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines — "Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode again — Fed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.
Go deeper (1 min. read)Arrow
Axios
3 hours ago - Politics & Policy

NRA declares bankruptcy, says it will reincorporate in Texas

Wayne LaPierre of the National Rifle Association (NRA) speaks during CPAC in 2016. Photo: Saul Loeb/AFP via Getty Images

The National Rifle Association said Friday it has filed for Chapter 11 bankruptcy and will seek to reincorporate in Texas, calling New York, where it is currently registered, a "toxic political environment."

The big picture: The move comes just months after New York Attorney General Letitia James filed a lawsuit to dissolve the NRA, alleging the group committed fraud by diverting roughly $64 million in charitable donations over three years to support reckless spending by its executives.

Go deeper (1 min. read)Arrow