Bannon charged with fraud
WALL FUNDRAISER
NEW YORK • Steve Bannon, an architect of Donald Trump’s 2016 victory, was arrested on a yacht and whisked into a Manhattan courtroom where he pleaded not guilty to charges of defrauding donors in a scheme to help build the president’s signature wall along the U.S.-Mexico border.
Bannon, 66, was among four people arrested and charged by federal prosecutors in Manhattan with conspiracy to commit wire fraud and conspiracy to commit money laundering. They each face up to 40 years in prison if convicted, but likely would get much shorter sentences.
Prosecutors accused the defendants of defrauding hundreds of thousands of donors through a $25-million crowdfunding campaign called “We Build the Wall.” Bannon allegedly received more than $1 million via a non-profit organization he controls, some of which was used to cover hundreds of thousands in personal expenses.
Bannon wore a protective white mask amid the coronavirus pandemic and two open-collared shirts at federal court in Manhattan, where his lawyer entered a plea of not guilty on his behalf. He was freed on $5-million bond and was barred by a federal magistrate judge from travelling internationally.
He was arrested in Connecticut by agents from the prosecutor’s office and the U.S. Postal Inspection Service aboard a 150-foot yacht, according to a law enforcement source. Before the arrest a coast guard helicopter reportedly hovered over the yacht, which according to one yacht firm is priced at about $28 million and has five cabins. Called the Lady May, the yacht is owned by Chinese fugitive billionaire Guo Wengui, with whom Bannon has had a working relationship.
Guo put out a statement saying: “Our past efforts with Mr. Bannon in fighting for democracy in China had nothing to do with the Build the Wall organization.”
The famously dishevelled entrepreneur headed the right-wing Breitbart News website — a voice for the altright movement that spans hardcore nationalists, white supremacists, neo-Nazis and anti-Semites — before joining Trump’s campaign. He later served as White House chief strategist and helped articulate the “America First” rightwing populism and fierce opposition to immigration that have been hallmarks of Trump’s 3-1/2 years in office. Trump fired him in August 2017.
At the White House Trump told reporters that he feels “very badly” about the charges but sought to distance himself from Bannon and the alleged scheme.
“I do think it’s a sad event,” Trump said. “I haven’t dealt with him at all now for years, literally years.”
Trump said he knew little about the project. But one of those involved, former Kansas secretary of state Kris Kobach, said in 2019 that the president had offered his support, according to the New York Times.
Trump has struggled to build his border wall — a key 2016 campaign promise — in the face of court challenges, logistical hurdles and congressional opposition. His administration has completed 48 km of border fencing and replaced another 386 km of barriers along the 3,200-km border, government figures show.
The group tied to Bannon built two wall sections on private land in New Mexico and Texas, drawing criticism from local residents.
“I know nothing about the project,” Trump said on Thursday, “other than … 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.”
Also charged on Thursday were Brian Kolfage, 38, Andrew Badolato, 56, and Timothy Shea, 49.
A triple-amputee U.S. air force veteran, Kolfage set up the online crowdfunding drive for the wall on Dec. 17, 2018, and it raised about $17 million within the first week.
It would go on to raise more than $25 million. Bannon became involved at a later stage.
Kolfage repeatedly made statements about not taking any money from the campaign, including, “I won’t take a penny from these donations.”
But, according to the indictment, a secret agreement was made where Kolfage would in fact covertly be paid “100k up front (and) then 20 (per) month,” which prosecutors said meant a monthly salary of about $20,000.
That money and the payments to Bannon were routed through a shell company and a non-profit group, using fake invoices, prosecutors said.