On Tuesday, the New York Attorney General’s office announced that it had secured an agreement to disband President Donald Trump’s personal charity as part of a lawsuit into the organization’s many alleged misdeeds.

Fox News host Shep Smith dedicated two segments to the charity scam, which infamously included paying $10,000 for a portrait of Trump.

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Former prosecutor Bob Bianchi said that the news about Trump’s charity folding under the weight of state-level prosecution was possibly more consequential than the day’s developments related to former Trump aide Michael Flynn.

“The attorney general is very specific,” Smith said.

“The attorney general was basically saying that these were willful violations, that they were being used for the campaign and personal reasons, which clearly is a violation of the charitable organization law,” Bianchi said. “The language was written in a civil context because that’s what this is right now, but you can translate that into a criminal context—that says ‘fraud,’ ‘tax evasion,’ and ‘lying about charitable contributions.'”

Bianchi said that he thinks this case might catch up with Trump faster than the Mueller investigation because it’s New York state.

“I’ve been yelling and screaming for over a year about state crimes—that’s the thing everybody keeps missing,” he said. “The state crime issues are beyond the pardon power of the president and the state crime issues are not subjected to this DOJ memo, to whatever extent it means you cannot indict a sitting president.”

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Bianchi went on to explain why he believes Mueller may also have sealed indictments against Trump.

Watch the clip below.