Attorney General Eric Schneiderman is investigating the Eric Trump Foundation after Forbes reported a fundraiser meant to raise money for St. Jude's was used to benefit the Trump Organization.
Eric Soufer, the attorney general's director of communications, confirmed the investigation to Politico.
Forbes reviewed filings from Eric Trump's foundation and found the Trump Organization received more than $1.2 million for use of the course. The Trump Organization also used the Eric Trump Foundation to funnel $100,000 in donations into revenue for the Trump Organization.
More than $500,000 was re-donated to other charities, many of which were connected to the Trump family, according to Forbes. Eric Trump sold donors on the fact that use of the golf course was free to ensure 100 percent of all money raised would go to charity.
A spokesperson for Eric Trump told CNN the story was shameful and truly disgusting and the Trump Organization did not profit from the foundation or its activities.
"I have raised $16.3 million dollars for terminally ill children at St. Jude with less than a 12.3 percent expense ratio," Eric Trump tweeted last week. "What have you done today?"
The Eric Trump Foundation has donated to many local causes including Marsh Sanctuary in Mount Kisco, SPCA of Westchester and the Joe Torre Safe at Home Foundation, according to LoHud .
After Donald Trump was elected president, Eric Trump stepped away from the foundation, which was restructured and renamed, according to CNN .
In addition to the Seven Springs estate, Donald Trump also owns Trump National Golf Club Hudson Valley in Stormville. The Trump name also adorns Trump Tower At City Center in White Plains, Trump Plaza in New Rochelle, Trump Park Residences in Yorktown and the Donald J. Trump State Park on the Westchester/Putnam border.