Bannon pleads not guilty in fraud case
NEW YORK — President Donald Trump’s former chief strategist, Steve Bannon, was pulled from a luxury yacht and arrested Thursday on allegations that he and three associates ripped off donors trying to fund a southern border wall.
The organizers of the “We Build The Wall” group portrayed themselves as eager to help the president build a barrier along the U.S.Mexico border, as he promised during the 2016 campaign. They raised more than $25 million from thousands of donors and pledged that 100 percent of the money would be used for the project.
But according to the criminal charges unsealed Thursday, much of the money never made it to the wall. Instead, it was used to line the pockets of group members, including Bannon, who served in Trump’s White House and worked for his campaign. He allegedly took over $1 million, using some to secretly pay co-defendant Brian Kolfage, the founder of the project, and to cover hundreds of thousands of dollars in personal expenses.
Hours after his arrest, Bannon pleaded not guilty during an appearance in a Manhattan federal court. He is the latest addition to a long list of Trump associates who have been charged, including his former campaign chair, Paul Manafort, whom Bannon replaced, his longtime lawyer, Michael Cohen, and his former national security adviser, Michael Flynn.
Bannon was taken into custody around 7 a.m. by the U.S. Postal Inspection Service on a 150-foot luxury yacht called Lady May, which was off the coast of Connecticut, authorities said. The boat is owned by exiled Chinese billionaire Guo Wengui and currently for sale for nearly $28 million.
At his hearing, Bannon appeared by video with his hands cuffed in front of him and a white mask covering most of his face. The magistrate judge approved Bannon’s release on $5 million bail, secured by $1.75 million in assets.
When he emerged from the courthouse, Bannon tore off his mask, smiled and waved to news cameras. As he went to a waiting vehicle, he shouted, “This entire fiasco is to stop people who want to build the wall.”
Neither Bannon, nor his spokesperson or attorney responded to requests for comment Thursday. Kolfage did not respond either. Also charged were Andrew Badolato and Timothy Shea, the owner of an energy drink company called Winning Energy. The company’s cans feature a cartoon superhero image of Trump and claim to contain “12 oz. of liberal tears.” Shea appeared at a brief virtual hearing in Denver.
After the arrest, Trump quickly distanced himself from Bannon and the project.
“When I read about it, I didn’t like it. I said this is for government, this isn’t for private people. And it sounded to me like showboating,” he told reporters at the White House, adding that he felt “very badly” about the situation.