Former Trump advisor Steve Bannon arrested and charged with fraud in $25M Mexico wall fundraising scam
Former White House Chief Strategist Steve Bannon was taken into custody on Thursday after federal prosecutors in New York charged him with fraud. Bannon and three others are accused of defrauding donors to line their pockets with hundreds of thousands of dollars raised via a crowdfunding campaign called "We Build the Wall" that raised over $25 million, according to a press release by the U.S. Attorney’s Office of Southern District of New York.
The indictment stated that Bannon raked in over $1 million from the scheme "and at least some of it was used to cover hundreds of thousands of dollars in [his] personal expenses."
Meanwhile, his co-conspirators were identified as Brian Kolfage, a USAF veteran who started the fundraising campaign, Andrew Badolato, and Timothy Shea.
"KOLFAGE, 38, of Miramar Beach, Florida, BANNON, 66, of Washington, D.C., BADOLATO, 56, of Sarasota, Florida, and SHEA, 49, of Castle Rock, Colorado, are each charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, each of which carries a maximum penalty of 20 years in prison," the release stated.
Bannon's indictment notably makes him the sixth person linked to the 2016 Trump campaign to face federal charges, the others being Roger Stone, Michael Flynn, Rick Gates, Paul Manafort, and Michael Cohen.
We Build the Wall's website says it "will focus on building portions of a U.S. Southern Border wall and manage the support operations required for, and the processes associated with, the design, engineering, construction, and maintenance of the wall."
And while the indictment stated the organization did spend money on a border wall, it alleges that "hundreds of thousands of dollars were siphoned ... for the personal use and benefit" of the defendants. The funds were reportedly used "for a variety of personal expenses, including, among other things, travel, hotel, consumer goods, and personal credit card debts."
"In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would 'not take a penny in salary or compensation' and that '100% of the funds raised . . . will be used in the execution of our mission and purpose' because, as BANNON publicly stated, 'we’re a volunteer organization,'" per the indictment.
But Kolfage is alleged to have used his share for "home renovations, payments toward a boat, a luxury SUV, a golf cart, jewelry, cosmetic surgery, personal tax payments, and credit card debt."
"As alleged, the defendants defrauded hundreds of thousands of donors, capitalizing on their interest in funding a border wall to raise millions of dollars, under the false pretense that all of that money would be spent on construction. While repeatedly assuring donors that Brian Kolfage, the founder and public face of We Build the Wall, would not be paid a cent, the defendants secretly schemed to pass hundreds of thousands of dollars to Kolfage, which he used to fund his lavish lifestyle," acting U.S. Attorney Audrey Strauss said.
"This case should serve as a warning to other fraudsters that no one is above the law, not even a disabled war veteran or a millionaire political strategist," Inspector-in-Charge Philip R. Bartlett added.
However, the release clarified that "charges contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty."