"The foundation was little more than a checkbook for payments to not-for-profits from Mr. Trump or the Trump Organization", Underwood said in a 41-page complaint filed in NY state court in Manhattan.
She asked that its remaining $1 million in assets be distributed to other charities and that Trump be forced to pay at least $2.8 million in restitution and penalties.
NY state began investigating the Trump Foundation in response to a probe by The Washington Post. "I won't settle this case!".
Also named in the suit were Mr Trump's children, Ivanka, Eric, and Donald Jr.
The foundation has no employees, delegated its operations to a management company that provides back-office services to the entities that make up the Trump Organization, and Trump ran the charity "according to his whim, rather than the law", according to the suit.
A section of the New York State lawsuit against the Trump Foundation
The legal filing alleges "a pattern of persistent illegal conduct, occurring over more than a decade" including "extensive unlawful political coordination with the Trump presidential campaign".
The lawsuit says the foundation illegally helped support the Republican's campaign by raising money at a nationally televised fundraiser in January 2016, then allowing campaign staffers to dictate how the money was spent in grants.
In the suit, Underwood noted that the president had already paid more than $330,000 in reimbursements and penalty taxes since 2016.
It also accuses the charity of conducting "repeated and willful self-dealing transactions to benefit Mr Trump's personal and business interests".
The lawsuit follows an investigation of the Trump foundation that began in June 2016 under the previous NY attorney general, Eric Schneiderman, who resigned in disgrace in May. Schneiderman ordered the foundation to stop fundraising in NY. The board, though, had not met since 1999, and Underwood asked that the Trump children be banned from serving as director of any NY nonprofits for a year.
Rebel Wilson's defamation payout intended for charity slashed
Apparently some weight loss companies are using her image to sell their shit, and Wilson's not into it. That sum would have been the largest defamation payment ever ordered by an Australian court.