- Former top aide to U.S. President Donald Trump, Steve Bannon, has been charged over alleged fraud relating to an online fundraising campaign
- Bannon is one of four men to be charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering over the “We Build the Wall” campaign
- The Southern District of New York alleges the men used third-party entities to funnel funds into their own pockets – despite assurances to donors all funds raised would be used for wall-building on the southern U.S border
- President Trump has distanced himself from the alleged scandal, saying he didn’t “know anything about the project at all.”
- Bannon is the sixth close associate of President Trump to be charged with serious crimes
- He’s been bailed on a US$5 million (A$6.95 million) surety and had his passport confiscated
Former top aide to U.S. President Donald Trump, Steve Bannon, has been charged over alleged fraud relating to online fundraising campaign, “We Build the Wall.”
Build the wall
Bannon was arrested early Thursday morning on a 45-metre yacht reportedly belonging to Chinese billionaire Guo Wengui. The arrest was made by agents of the U.S. Postal Inspection Service, which investigates fraud.
He, along with three other men, have been charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
The “We Build the Wall” scheme began as a GoFundMe campaign in 2018 and had been characterised as a volunteer organisation.
Statements on its website said Kolfage and others would receive no compensation, and 100 per cent of donations would go towards construction of a wall on the U.S. southern border.
But, Bannon, along with the organisation’s founder Brian Kolfage and two other men, Andrew Badolato and Timothy Shea, are accused of pocketing a portion of the US$25 million (Around A$34.7 million) raised in donations.
The investigation was conducted by the Southern District of New York (SDNY) — the same office responsible for the prosecution of other top Trump aides. including his former lawyer Michael Cohen.
Bannon is also the sixth close associate of President Trump to be charged with serious crimes, along with Cohen, Paul Manafort, Roger Stone, Rick Gates and Michael Flynn.
SDNY case
The SDNY filing alleges the four men “worked together to misappropriate hundreds of thousands of dollars of [the] funds for their own personal benefit.”
The filing also alleges Bannon and his associates funnelled more than US$1.35 million (around A$1.88 million) out of the organisation through “third parties, including entities under the control of Bannon and Shea.”
It’s further alleged the funds were used to pay for Kolfage’s “personal expenses, including, among other purposes, home renovations, payments towards a boat, a luxury SUV, a golf cart, jewellery, cosmetic surgery, personal tax payments and credit card debt.”
What’s next?
President Trump, who has long advocated for a border wall between the U.S. and Mexico, has distanced himself from this campaign, stating he had no involvement with it.
“I haven’t been dealing with him for a very long period of time,” he said of Bannon, who left the White House in 2017. Trump also said he didn’t “know anything about the project at all.”
However, CNN reported in February that We Build the Wall had communicated with the administration about its plans to privately fund a section of border wall, and Mr Trump had previously tweeted about the project.
Donald Trump Jr. has also promoted the project at a rally with the founder near a section of wall that had been built in New Mexico.
Meantime, since the charges were levelled against him, Bannon has plead not guilty. He’s also been bailed on a US$5 million (A$6.95 million) surety and had his passport confiscated, pending his criminal trial.