THREAD: What can we learn from the indictment of Steve Bannon and his associates for conspiring to commit fraud in relation to the "We Build The Wall" crowdraising campaign?
1/ Today the Southern District of New York indicted Steve Bannon and three others for conspiring to commit wire fraud and for conspiring to commit money laundering in connection with the crowdraising campaign to build a border wall. Indictment link: justice.gov/usao-sdny/pres…
2/ The crowdraising campaign raised more than $25 million, and pledged that the founder would "not take a penny in salary or compensation" and that "100% of the fund raised ... will be used in the execution of our mission and purpose."
Lying to get someone's money is fraud.
Lying to get someone's money is fraud.
3/ The indictment alleges that Bannon received over $1 million from the campaign, which he used to secretly pay the founder and to cover hundreds of thousands of dollars in his own expenses.
If this sounds like a very simple case to get your head around, that's because it is.
If this sounds like a very simple case to get your head around, that's because it is.
4/ There are some twists and turns in this story. The crowdfunding website suspended the "We The People Build The Wall" campaign, which pledged to give all of the money to the federal government to build the wall, early on.
5/ The website said they would return the funds unless the founder identified a non-profit to which the funds could be transferred. Bannon used a separate 501(c)(4) non-profit group that he already controlled to receive the funds, with the new purpose of funding a private wall.
6/ The indictment alleges that Bannon and his associates continued to lie, claiming that the founder would "take no salary" and would receive not "a penny of compensation from these donations." These alleged lies were repeated many times, according to the indictment.
7/ Yet Bannon paid the founder hundreds of thousands of dollars in "salary" and did so in a manner meant to conceal the payments, by making payments to the founder's spouse. Bannon falsely reported on the 1099 tax form that the payments were for "media."
8/ In sum, the indictment alleges that Bannon, the founder, and their other co-conspirators each received hundreds of thousands in donor funds from the effort.
If this case didn't involve Steve Bannon, or an effort to ripoff Trump's base, it would be a garden variety fraud.
If this case didn't involve Steve Bannon, or an effort to ripoff Trump's base, it would be a garden variety fraud.
9/ Federal prosecutors routinely investigate and prosecute cases like this one.
It can be complicated to prove that otherwise legitimate companies or individuals engaged in fraudulent activity. This isn't one of those cases. The whole organization looks like a scam.
It can be complicated to prove that otherwise legitimate companies or individuals engaged in fraudulent activity. This isn't one of those cases. The whole organization looks like a scam.
10/ If the prosecutors can prove what is alleged in the indictment, it's hard to imagine a jury hesitating to convict the defendants.
This case raises questions about Barr's recent attempt to fire and replace the SDNY U.S. Attorney, or whether Trump will pardon Bannon. /end
This case raises questions about Barr's recent attempt to fire and replace the SDNY U.S. Attorney, or whether Trump will pardon Bannon. /end
