Schneiderman alerted the Trump Foundation that it broke state law when it raised more than $25,000 from outside donors without filing properly with the state. The "Notice of Violation" letter warned that the charity "shall be deemed a continuing fraud upon the people of New York" unless it provided required paperwork regarding its fundraising activities within the next 15 days.
It is the law in New York City that charities conduct annual audits if they intend to solicit donations.
As far as soliciting goes Trump has collected close to $4.4 million for his charity since 2009 despite not contributing a dime of his own money to it since 2008.
The scam here is that Trump solicits donations from other sources and then donates the proceeds out as his own.
Shortly after the notice was made public spokeswoman Hope Hicks said in a statement...
"While we remain very concerned about the political motives behind AG Schneiderman's investigation, the Trump Foundation nevertheless intends to cooperate fully with the investigation. Because this is an ongoing legal matter, the Trump Foundation will not comment further at this time."
To say this looks bad for Trump would be being charitable... Sorry I couldn't resist.