Story highlights The New York Attorney General said money collected by one charity went to fundraising

The charity's former president, Thomas Burch, is a lawyer with Veterans Affairs

Washington (CNN) The Department of Veterans Affairs is taking steps to fire one its lawyers, whose personal charity is shutting down in the wake of a settlement with the New York attorney general's office over the widespread misuse of funds.

The National Vietnam Veterans Foundation, which raised more than $29 million in four years but spent less than 2% of that money on actual veterans causes, is agreeing to shut down, forfeit its assets and its president, VA lawyer Thomas Burch, will pay back a $100,000 severance package.

The agreement was announced Thursday by the New York attorney general's office following an expose on the charity by CNN.

Burch remains a VA government lawyer earning an annual salary of $125,000. He was earning that salary while also, at one point, receiving a $65,000 annual salary from his foundation along with other benefits.

"VA takes this matter very seriously as unethical conduct undermines the trust and confidence veterans and the American people have in the good and important work of VA," VA spokesman Henry L. Huntley said in a statement to CNN. "After reviewing the evidence provided by the (Office of the Inspector General), today VA initiated the process for the employee's removal from federal service."

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