NEW YORK (AP) — President Donald Trump’s former chief strategist Steve Bannon was arrested Thursday on charges that he and three others ripped off donors to an online fundraising scheme to build a southern border wall, making him the latest in a long list of Trump associates to be indicted or charged.
The “We Build The Wall” fundraiser was headed by men who pushed their close ties to President Trump, giving their effort a legitimacy that helped them raise more than $25 million. They touted their effort to help the president realize his vision of a “big beautiful” border wall along the U.S.-Mexico border, especially after his effort to redirect millions in government funds, was held up through lawsuits.
But according to the criminal charges unsealed Thursday, very little of the wall was actually constructed. Instead, the money lined the pockets of some of those involved. Bannon, who served in Trump’s 2016 campaign and White House, received over $1 million himself, using some to secretly pay co-defendant, Brian Kolfage, the founder of the project, and to cover hundreds of thousands of dollars of Bannon’s personal expenses.
According to the indictment, Bannon promised that 100% of the donated money would be used for the project, but the defendants collectively used hundreds of thousands of dollars in a manner inconsistent with the organization’s public representations.
They faked invoices and sham “vendor” arrangements, among other ways, to hide what was really happening, according to the indictment. “All money donated to the ‘We Build the Wall’ campaign goes directly to wall!!! Not anyone’s pocket,” the lawsuit said.
Bannon is among a stunning list of former Trump associates who have found themselves under indictment or in jail, including his former campaign chair, Paul Manafort, his longtime lawyer, Michael Cohen, and his former national security adviser, Michael Flynn.
An immigration plan unveiled by Trump last year had included a proposal to allow public donations to pay for his long-promised southern border wall. At that point, the GoFundMe campaign launched by war veteran Brian Kolfage had raised more than $20 million for wall construction.
But Trump later denounced the project publicly, tweeting last month that “I disagreed with doing this very small (tiny) section of wall, in a tricky area, by a private group which raised money by ads. It was only done to make me look bad, and perhaps it now doesn’t even work. Should have been built like rest of Wall, 500 plus miles,” he said.
Trump on Thursday told reporters that he know nothing about the project, and never believed in a privately-financed barrier.
“I thought that was a project being done for showboating reasons,” he said.
White House spokeswoman Kayleigh McEnany also weighed in. “As everyone knows, President Trump has no involvement in this project and felt it was only being done in order to showboat, and perhaps raise funds,” she said adding that Trump “has not been involved with Steve Bannon since the campaign and the early part of the Administration, and he does not know the people involved with this project.”
The defendants learned last October from a financial institution that the “We Build the Wall” campaign might be under federal criminal investigation and took additional steps to conceal the fraud, according to the indictment.
Charges included conspiracy to commit wire fraud and conspiracy to commit money laundering.
Kolfage did not return a call seeking comment, but according to the indictment, he once said: “It’s not possible to steal the money. I can’t touch that money. It’s not for me.”
A phone at the office of Bannon’s lawyer went unanswered Thursday morning. Bannon and his spokeswoman did not immediately respond to a request for comment. It was not immediately clear who would represent Kolfage at an initial court appearance, and his phone was unanswered.
The indictment said Kolfage “went so far as to send mass emails to his donors asking them to purchase coffee from his unrelated business, telling donors that the coffee company was the only way he ‘keeps his family fed and a roof over their head.’”
Some donors wrote directly to Kolfage saying they did not have a lot of money and were skeptical of online fundraising campaigns, the indictment said. It added that Kolfage would reassure the donors that nobody was being compensated.
In fact, the indictment said, an arrangement had been made among the Bannon and his codefendants to pay Kolfage $100,000 up front and an additional $20,000 monthly.
Kolfage eventually spent some of the over $350,000 he received on home renovations, payments toward a boat, a luxury SUV, a golf cart, jewelry, cosmetic surgery, personal tax payments and credit card debt.
