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Steve Bannon Pleads Not Guilty to Fraud and Money Laundering Charges in Alleged Border Wall Scheme

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  • Former Trump advisor Steve Bannon pleaded not guilty to fraud and money laundering charges on Thursday, hours after he and three others were arrested for defrauding hundreds of thousands of people who donated to the We Build the Wall fundraising campaign.
  • The campaign, which was started by a Brian Kolfage in 2018, raised $25 million from half a million donors, which the organization leaders said they would use to privately build segments of Trump’s long-touted border wall.
  • However, the indictment accuses the men of taking donations for themselves and routing funds through a nonprofit and a shell company.
  • Bannon is accused of taking over $1 million, and Kolfage is accused of taking over $350,000.
  • All four face one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, each of which carries a maximum penalty of 20 years in prison.

We Build the Wall Campaign

In a virtual court appearance Thursday, President Donald Trump’s former chief strategist Steve Bannon pleaded not guilty after he and three others were arrested for defrauding hundreds of thousands of donors who gave money to the We Build the Wall fundraising campaign.

The campaign was first started as a viral crowdfunding campaign by purple heart veteran and triple amputee Brian Kolfage in December 2018. The GoFundMe had the goal of raising $1 billion to build part of the border wall for Trump.

At the time, Kolfage told reporters that he started the fundraiser because “political games from both parties” were holding back funding for the wall, and said that his campaign was about “giving the people the power.”

On the GoFundMe page, which has since been removed, Kolfage promised that, no matter what, “100% of your donations will go to the Trump Wall. If for ANY reason we don’t reach our goal we will refund your donation.”

Just a month later, in January 2019, Kolfage decided that it would be more effective to raise money through a nonprofit instead. Rather than giving the Trump administration the money, the nonprofit would use it to privately build segments of the wall through negotiations with people who owned land along the southern border.

As for the over $20 million he had already raised from nearly 340,000 donors, Kolfage said that they could either get their money back or redirect it to the nonprofit. A GoFundMe spokesperson said at the time that because of the promises Kolfage had made, all donors would automatically get refunds unless they manually redirect their donations.

Around that time, Kolfage created the nonprofit to continue raising money, and according to their website, We Build the Wall has received $25 million from half a million donors. 

Notably, Kolfage also got several significant Republican figures to sign as advisory board members, including Erik Prince, the founder of Blackwater and brother of Education Secretary Betsy DeVos, former Kansas Secretary of State Kris Kobach, and former Colorado Congressman Tom Tancredo. Bannon served as chairman of the board.

Indictment Unsealed

The charges unveiled Thursday allege that Bannon, Kolfage, and two other men named Andrew Badolato and Timothy Shea, stole donations to the campaign for personal use by routing contributions through the nonprofit and shell companies.

According to a statement from the Justice Department, the unsealed indictment claims the four men, “defrauded hundreds of thousands of donors, capitalizing on their interest in funding a border wall to raise millions of dollars, under the false pretense that all of that money would be spent on construction.”

To encourage people to donate, the indictment alleges that Kolfage “repeatedly and falsely assured the public that he would ‘not take a penny in salary or compensation’ and that ‘100% of the funds raised . . . will be used in the execution of our mission and purpose’ because, as BANNON publicly stated, ‘we’re a volunteer organization.’”

The prosectuors lists the numerous claims Kolfage made about not collecting money from the organization, including sending mass emails to donors asking them to buy from a coffee company he owned and telling them it was the only way he “keeps his family fed and a roof over their head” because he was taking “no compensation” from the nonprofit.

According to the indictment, Kolfage also repeatedly touted the bylaws the nonprofit put in place, publicly claiming they said he was to receive no salary and even once going as far as to say, “It’s not possible to steal the money.” Both he and Bannon have additionally said that the advisory board members would not be compensated.

Prosecutors say all those claims were false, and that in reality, all four men were taking a cut, with them allegedly using the money “for a variety of personal expenses, including, among other things, travel, hotel, consumer goods and personal credit card debts.”

According to the indictment, despite his many public statements, within just days of launching We Build a Wall, Kolfage reached a secret agreement with the other defendants under which he would be paid $100,000 upfront and then 20,000 per each month following.

In total, the indictment claims Kolfage took over $350,000 of the donations which he spent on boat payments, a luxury S.U.V., a golf cart, and cosmetic surgery, among other things. Bannon, for his part, allegedly took more than $1 million, which he allegedly used to pay off hundreds of thousands of dollars in personal expenses.

To conceal the payments, the prosecutors say the defendants “devised a scheme” to route them through a separate nonprofit owned by Bannon and a shell company by “using fake invoices and sham ‘vendor’ arrangements, among other ways.”

When they learned last October that they may be under criminal investigation, the website for We Build a Wall was changed “to remove any mention of the promise Kolfage was not being compensated and to add a statement that he would be paid a salary starting January 2020,” the indictment says. 

All four men have each been charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Each charge carries a maximum penalty of 20 years in prison. 

See what others are saying: (The Washington Post) (The New York Times) (Axios)

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Jan. 6 Committee Prepares Criminal Charges Against Steve Bannon for Ignoring Subpoena

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The move comes after former President Trump told several of his previous aides not to cooperate with the committee’s investigation into the insurrection.


Bannon Refuses to Comply With Subpoena

The House committee investigating the Jan. 6 insurrection announced Thursday that it is seeking to hold former White House advisor Steve Bannon in criminal contempt for refusing to comply with a subpoena.

The decision marks a significant escalation in the panel’s efforts to force officials under former President Donald Trump’s administration to comply with its probe amid Trump’s growing efforts to obstruct the inquiry.

In recent weeks, the former president has launched a number of attempts to block the panel from getting key documents, testimonies, and other evidence requested by the committee that he claims are protected by executive privilege.

Notably, some of those assertions have been shut down. On Friday, President Joe Biden rejected Trump’s effort to withhold documents relating to the insurrection.

Still, Trump has also directed former officials in his administration not to comply with subpoenas or cooperate with the committee. 

That demand came after the panel issued subpoenas ordering depositions from Bannon and three other former officials: Chief of Staff Mark Meadows, Deputy Chief of Staff Dan Scavino, and Pentagon Chief of Staff Kash Patel.

After Trump issued his demand, Bannon’s lawyer announced that he would not obey the subpoena until the panel reached an agreement with Trump or a court ruled on the executive privilege matter.

Many legal experts have questioned whether Bannon, who left the White House in 2017, can claim executive privilege for something that happened when he was not working for the executive.

Panel Intensifies Compliance Efforts

The Thursday decision from the committee is significant because it will likely set up a legal battle and test how much authority the committee can and will exercise in requiring compliance.

It also sets an important precedent for those who have been subpoenaed. While Bannon is the first former official to openly defy the committee, there have been reports that others plan to do the same. 

The panel previously said Patel and Meadows were “engaging” with investigators, but on Thursday, several outlets reported that the two — who were supposed to appear before the body on Thursday and Friday respectively —  are now expected to be given an extension or continuance.

Sources told reporters that Scavino, who was also asked to testify Friday, has had his deposition postponed because service of his subpoena was delayed.

As far as what happens next for Bannon, the committee will vote to adopt the contempt report next week. Once that is complete, the matter will go before the House for a full vote.  

Assuming the Democratic-held House approves the contempt charge, it will then get referred to the U.S. Attorney for the District of Columbia to bring the matter before a grand jury.

See what others are saying: (CNN) (The Washington Post) (Bloomberg)

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Senate Votes To Extend Debt Ceiling Until December

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The move adds another deadline to Dec. 3, which is also when the federal government is set to shut down unless Congress approves new spending.


Debt Ceiling Raised Temporarily

The Senate voted on Thursday to extend the debt ceiling until December, temporarily averting a fiscal catastrophe.

The move, which followed weeks of stalemate due to Republican objections, came after Senate Minority Leader Mitch McConnell (R-Ky.) partially backed down from his blockade and offered a short-term proposal.

After much whipping of votes, 11 Republicans joined Democrats to break the legislative filibuster and move to final approval of the measure. The bill ultimately passed in a vote of 50-48 without any Republican support.

The legislation will now head to the House, where Majority Leader Steny Hoyer (D-Md.) said members would be called back from their current recess for a vote on Tuesday. 

The White House said President Joe Biden would sign the measure, but urged Congress to pass a longer extension.

“We cannot allow partisan politics to hold our economy hostage, and we can’t allow the routine process of paying our bills to turn into a confidence-shaking political showdown every two years or every two months,’’ White House Press Secretary Jen Psaki said in a statement.

Under the current bill, the nation’s borrowing limit will be increased by $480 billion, which the Treasury Department said will cover federal borrowing until around Dec. 3.

The agency had previously warned that it would run out of money by Oct. 18 if Congress failed to act. Such a move would have a chilling impact on the economy, forcing the U.S. to default on its debts and potentially plunging the country into a recession. 

Major Hurdles Remain

While the legislation extending the ceiling will certainly offer temporary relief, it sets up another perilous deadline for the first Friday in December, when government funding is also set to expire if Congress does not approve another spending bill.

Regardless of the new deadline, many of the same hurdles lawmakers faced the first time around remain. 

Democrats are still struggling to hammer out the final details of Biden’s $3.5 trillion spending agenda, which Republicans have strongly opposed.

Notably, Democratic leaders previously said they could pass the bill through budget reconciliation, which would allow them to approve the measure with 50 votes and no Republican support.

Such a move would require all 50 Senators, but intraparty disputes remain over objections brought by Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Az.), who have been stalling the process for months.

Although disagreements over reconciliation are ongoing among Democrats, McConnell has insisted the party use the obscure procedural process to raise the debt limit. Democrats, however, have balked at the idea, arguing that tying the debt ceiling to reconciliation would set a dangerous precedent.

Despite Republican efforts to connect the limit to Biden’s economic agenda, raising the ceiling is not the same as adopting new spending. Rather, the limit is increased to pay off spending that has already been authorized by previous sessions of Congress and past administrations.

In fact, much of the current debt stems from policies passed by Republicans during the Trump administration, including the 2017 tax overhaul. 

As a result, while Democrats have signaled they may make concessions to Manchin and Sinema, they strongly believe that Republicans must join them to increase the debt ceiling to fund projects their party supported. 

It is currently unclear when or how the ongoing stalemate will be resolved, or how either party will overcome their fervent objections.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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California Makes Universal Voting by Mail Permanent

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California is now the eighth state to make universal mail-in ballots permanent after it temporarily adopted the policy for elections held amid the COVID-19 pandemic. 


CA Approves Universal Voting by Mail

California Gov. Gavin Newsom (D) signed a bill Monday requiring every registered voter in the state to be mailed a ballot at least 29 days before an election, whether they request it or not.

Assembly Bill 37 makes permanent a practice that was temporarily adopted for elections during the COVID-19 pandemic. The law, which officially takes effect in January, also extends the time mail ballots have to arrive at elections offices from three days to seven days after an election. Voters can still choose to cast their vote in person if they prefer.

Supporters of the policy have cheered the move, arguing that proactively sending ballots to registered voters increases turnout.

“Data shows that sending everyone a ballot in the mail provides voters access. And when voters get ballots in the mail, they vote,” the bill’s author, Assemblyman Marc Berman (D-Palo Alto), said during a Senate committee hearing in July.

Meanwhile opponents — mostly Republicans — have long cast doubts about the safety of mail-in voting, despite a lack of evidence to support their claims that it leads to widespread voter fraud. That strategy, however, has also faced notable pushback from some that a lot of Republicans who say it can actually hurt GOP turnout.

Others May Follow

The new legislation probably isn’t too surprising for California, where over 50% of votes cast in general elections have been through mail ballots since 2012, according to The Sacramento Bee. Now, many believe California will be followed by similar legislation from Democrats across the country as more Republican leaders move forward with elections bills that significantly limit voting access.

Newsome signed 10 other measures Monday changing election and campaign procedures, including a bill that would require anyone advocating for or against a candidate to stand farther away from a polling place. Another bill increases penalties for candidates who use campaign funds for personal expenses while a third measure increases reporting requirements for limited liability corporations that engage in campaign activity.

“As states across our country continue to enact undemocratic voter suppression laws, California is increasing voter access, expanding voting options and bolstering elections integrity and transparency,” Newsom said in a statement.

“Last year we took unprecedented steps to ensure all voters had the opportunity to cast a ballot during the pandemic and today we are making those measures permanent after record-breaking participation in the 2020 presidential election.”

The news regarding California came just in time for National Voter Registration day today, giving Americans another reminder to make sure they’re registered in their states. For more information on how to register, visit Vote.gov or any of the other resources linked below.

See what others are saying: (The Hill) (Los Angeles Times) (The Sacramento Bee)

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