Trump ally held over ‘ build the wall’ fraud
Bannon ‘siphoned off $1m in donations for personal use’
‘Arrested on £22million yacht’
DONALD Trump’s former right-hand man Steve Bannon was arrested yesterday for allegedly fleecing Americans who donated money to build the Mexican wall.
Bannon, who steered the President into the White House, is accused of pocketing $ 1million (£ 760,000).
The 66-year-old and three alleged accomplices are accused of spending it on personal expenses that included boats, golf carts and even cosmetic surgery.
He was arrested while cruising in a £22million 151ft mega yacht called Lady May in Connecticut. His We Build the Wall group, promised online donors that it was run by volunteers and would direct all funds toward building sections of the wall – Mr Trump’s pet project designed to keep out immigrants from Mexico.
The idea was that it would cut through red tape that delayed the White House’s own efforts.
But although some of the $25million (£18million) raised was actually spent on building sections of wall, much was secretly siphoned off, say prosecutors.
Bannon, an ex-Hollywood producer and former boss of the farRight Breitbart website, was Mr Trump’s controversial chief strategist in the 2016 election before being forced out a few months later. He was known for his links to the ‘alt-Right’ movement but denied he was a white supremacist.
He and the three alleged accomplices – including Iraq War veteran and triple amputee Brian Kolfage – are accused of concealing illicit payments by sending them to Kolfage’s wife, Ashley. They are said to have used Bannon’s nonprofit group and a shell company to hide the flow of money.
Prosecutors highlighted a message allegedly sent by Bannon which said there should be ‘no deal I don’t sign off on’. The four allegedly used fake invoices and nonexistent vendors, keeping the system ‘need to know’. Bannon was yesterday brought to New York for an initial court appearance. He faces charges of conspiracy to commit fraud and money laundering.
Mr Trump tried to distance himself, saying: ‘I feel very badly. I haven’t been dealing with him for a very long period of time. It’s a very sad thing by Mr Bannon.’ To encourage donors to give, Bannon and Kolfage ‘repeatedly and falsely assured the public’ it would all go towards the wall, said prosecutors.
Instead, they secretly moved money into their own accounts, with Kolfage taking $ 350,000 (£265,000) from the fund. Prosecutors say he used it to pay for his ‘lavish lifestyle’ – buying a boat, jewellery, a golf cart and an expensive car, as well as renovating his home and paying off credit cards.
Bannon used a ‘substantial portion’ of the donor funds for unrelated ‘personal uses and expenses’. The group built some small sections of wall in Texas and Mexico.
Bannon, who once said Mr Trump had started a ‘world revolution...to stand up for the little guy’, was worth up to $48million (£36million) when he joined the White House staff in 2017. The alleged scam happened after he had left.
Insiders say he infuriated Mr Trump by taking the credit for his election victory. He faces up to 40 years in prison if convicted.