Trump will repay $750K to settle inauguration lawsuit over hotel payments

The Trump Organization and Donald Trump's presidential inaugural committee have agreed to settle a lawsuit brought by Washington, D.C., Attorney General Karl Racine over allegations that Trump and his family misused nonprofit inauguration funds to enrich themselves in early 2017.

The suit claimed that the nonprofit funds raised by the inaugural committee were improperly used for private benefit when the Trump campaign rented $1 million in ballroom space from Trump's Washington, D.C., hotel during the four days of inaugural festivities.

Trump's company will repay $750,000 to settle the suit, according to the terms of the settlement.

"After he was elected, one of the first actions Donald Trump took was illegally using his own inauguration to enrich his family," Racine said in a statement. "We refused to let that corruption stand."

"Nonprofit funds cannot be used to line the pockets of individuals, no matter how powerful they are," said Racine. "Now any future presidential inaugural committees are on notice that they will not get away with such egregious actions."

Trump, in a statement, denied any wrongdoing.

"Given the impending sale of The Trump International Hotel, Washington D.C., and with absolutely no admission of liability or guilt, we have reached a settlement to end all litigation with Democrat Attorney General Racine," the former president said. "As crime rates are soaring in our Nation's Capital, it is necessary that the Attorney General focus on those issues rather than a further leg of the greatest Witch-Hunt in political history."

"This was yet another example of weaponizing Law Enforcement against the Republican Party and, in particular, the former President of the United States," Trump said in the statement. "So bad for our Country!"

The $750,000 in repaid funds with be redirected to nonprofit organizations.

ABC's Aaron Katersky reports: