Trump inaugural fund scrutinized over foreign cash

WASHINGTON — Federal prosecutors are examining whether foreigners illegally funneled donations to President Trump’s inaugural committee and a pro-Trump super PAC in hopes of buying influence over U.S. policy, according to people familiar with the inquiry.

The inquiry focuses on whether people from Mideast nations — including Qatar, Saudi Arabia and the United Arab Emirates — used straw donors to disguise additions to the funds. Federal law prohibits foreign contributions to federal campaigns, political action committees and inaugural funds.

The line of questioning underscores the growing scope of criminal inquiries that pose a threat to Trump’s presidency. Special Counsel Robert Mueller is focusing on whether anyone in the Trump campaign conspired with Russia to tip the 2016 presidential election in Trump’s favor, while prosecutors in New York are pursuing evidence he secretly authorized illegal payments to silence accusations of extramarital affairs that threatened his campaign.

The inquiry into potential foreign donations to the inaugural fund and the super PAC is yet another front being pursued by multiple teams of prosecutors. Thomas Barrack, a billionaire financier and one of Trump’s closest friends, raised money for both funds.

“Tom has never talked with any foreign individual or entity for the purposes of raising money for or obtaining donations related to either the campaign, the inauguration or any such political activity,” said Owen Blicksilver, a spokesman for Barrack. The inaugural committee focus was first reported Thursday by the Wall Street Journal.

The super PAC, Rebuilding America Now, was formed in the summer of 2016 when Trump’s presidential campaign was short of cash and out of favor with many major Republican donors. While Trump insisted that he could finance his own campaign, he refused to dig too deeply into his own pockets.

According to several people familiar with the investigation, Paul Manafort, who then headed the campaign, suggested that Barrack step into the void by creating and raising funds for the PAC, which could collect unlimited amounts as long as it avoided coordinating closely with the candidate.

In an interview with investigators a year ago, Barrack said that Manafort seemed to view the political committee as an arm of the campaign, despite laws meant to prevent such coordination, according to a person familiar with the interview.

Sharon LaFraniere, Maggie Haberman and Adam Goldman are New York Times writers.