New York's new attorney general Barbara Underwood is suing President Trump and his children, alleging they are guilty of violating campaign finance laws with the Donald J. Trump Foundation.
Barbara Underwood said the foundation had engaged in "extensive unlawful political coordination" created to influence the 2016 election.
The attorney general's office seeks to dissolve the foundation and asks for $2.8 million in restitution.
The lawsuit, filed in Manhattan Supreme Court, also names Trump's children Donald Trump Jr., Ivanka Trump and Eric Trump because they have been board members of the Donald J. Trump Foundation.
The New York AG found multiple instances of alleged self-dealing within the Trump Foundation, as Trump signed off on using charity money to pay off lawsuits against his businesses - and even to buy a $10,000 portrait of himself. Schneiderman ordered the foundation to stop fundraising in NY. I won't settle this case!,' he wrote.
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Mr Grieve warned that if the Government failed to offer an adequate compromise, it would not be "the end of the matter". But the Prime Minister is likely to face the risk of further rebellions further down the line.
"In 2016, the board knowingly allowed the foundation to be coopted by Trump's presidential campaign", the suit says.
Underwood also asked that Trump be banned from leading any other NY nonprofit for 10 years.
Underwood also sent referral letters to the Internal Revenue Service and the Federal Election Commission for further action. President Trump responded on Twitter with a string of tweets: According to the petition, Trump used the Trump Foundation's charitable assets to pay off his legal obligations, to promote Trump hotels and other businesses, and to purchase personal items.
Nevertheless, as NY attorney general Ms Underwood has significant investigatory and prosecutorial power - and if she starts flushing the bushes of some of Mr Trump's more questionable charitable activities, there's no telling what she might turn up. "This is unconscionable - particularly because the foundation previously announced its intention to dissolve more than a year and a half ago". "The acting NYAG's recent statement that battling the White House is "the most important work [she] have ever done" shows that such political attacks will continue unabated".