Feds charge ex-Trump official Steve Bannon with criminal fraud in crowd-funded border wall campaign

Feds charge ex-Trump official Steve Bannon with criminal fraud in crowd-funded border wall campaign
Steve Bannon (Photo: Screen capture)

Former Trump White House political strategist Steve Bannon has been charged with criminal fraud for his role in a crowd-funded campaign to build President Donald Trump's wall along the U.S.-Mexico border.


The United States Attorney's Office for the Southern District of New York announced on Thursday that Bannon and several other leaders of the ‘We Build The Wall’ online fundraising campaign have been indicted for defrauding "hundreds of thousands" of donors.

"As alleged, the defendants 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," said acting SDNY U.S. Attorney Audrey Strauss. "While repeatedly assuring donors that Brian Kolfage, the founder and public face of We Build the Wall, would not be paid a cent, the defendants secretly schemed to pass hundreds of thousands of dollars to Kolfage, which he used to fund his lavish lifestyle."

As for Bannon's role in the scheme, SDNY alleges that he funneled "over $1 million from We Build the Wall" into a nonprofit organization that he personally controlled. According to SDNY, Bannon then used at least some of that money "to cover hundreds of thousands of dollars" in his own personal expenses.

In total, Bannon has been charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.

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Experts raged on Wednesday night after the cost of President Donald Trump's first week at war with Iran was revealed.

The Associated Press reported that the first week of the war cost $11.3 billion, which includes all of the munitions used in the bombing operations that killed former Ayatollah Ali Khamenei and destroyed a girls' school, killing 175 civilians in the process. The report was published at a time when the Trump administration is facing considerable backlash for bombing Iran, which Trump himself described as both a "war" and an "excursion" during a press conference on Wednesday.

The total cost of the war caused a stir on social media.

"Say what? How can we afford these massive outlays?" political strategist Donna Brazile posted on X. "Every President since Clinton has opposed Iran getting a bomb, destroying the neighbors (Middle Eastern nations), and being a state sponsor of terrorism worldwide. But we still have no real strategy or endgame?"

"That money was enough to save the lives of more than 3 million children worldwide, with nutritional paste for malnutrition, bed nets against malaria, vaccination programs, and community health workers," NYT columnist Nicholas Kristoff posted on X. "Instead, we spent it blowing up people and things, and raising gas prices."

"$11.3 billion on war for Iran, but tell me again how we don’t have enough money for health care," Rep. Pramila Jayapal (D-WA) posted on X.

"Affordability," legal expert Joyce Vance posted on X. "From the people who don’t think hardworking taxpayers deserve assistance with food, medical care, or housing."

"The same people who cut pediatric cancer research on their 'waste, fraud, and abuse' crusade apparently have a blank check for a war they can't even explain," author Chasten Buttigieg posted on X.

"We could have provided housing for every homeless person in the country for less than what Trump spent in the first week of his war with Iran," TV commentator Kaivan Shroff posted on X.

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Republican lawmakers would be able to sue people who use social media to criticize them and call them names under a bill they approved that would make it easier for politicians to file defamation cases against their critics.

Among other things, the proposal would lower the long-held legal standard for public figures — like politicians — to prevail in defamation lawsuits, veteran First Amendment attorney David Bodney said.

“This bill misstates well-established First Amendment law,” Bodney told the Arizona Mirror. “It eliminates the requirement of proving ‘actual malice’ when private figures sue for defamation over a matter of ‘public concern.’ That’s not the law and it would violate a well established First Amendment protection.”

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Bodney’s client list includes many media organizations in Arizona, including the Arizona Mirror, and he is one of the state’s most prominent First Amendment and public records attorneys.

Bodney said Senate Bill 1099, by Sen. Wendy Rogers, R-Flagstaff, would almost certainly invite a constitutional challenge if it became law.

In defamation lawsuits, public officials have to clear a higher legal bar than private individuals in order to prove they were defamed. That standard, known as “actual malice” on the part of the person publishing the alleged defamatory comment, is incredibly difficult to meet.

The standard came from a landmark U. S. Supreme Court ruling in 1964 in which the New York Times was sued for defamation for an ad they ran by Martin Luther King Jr. targeting the Montgomery Police Department. President Donald Trump has spoken about his desire to overturn the ruling so he can sue his critics and journalists.

To prove actual malice, public officials must prove that the publisher both knew that the statement was false and intentionally published it anyway. Rogers’ bill omits the actual malice standard that requires a public figure or public official to provide clear and convincing proof that a person acted with malice or knowing disregard for the truth, Bodney said.

Rogers’ bill states that a person commits defamation if a person publishes a statement they know to be false “or acts with reckless disregard of the statement’s truth” or if the person “publishes a statement that, when examined within the full context in which it was made, injures the plaintiff’s reputation” by naming them.

The bill also says that a person commits defamation if the published statement is both “provable as false” and “reasonably perceived as stating actual facts about the plaintiff rather than imaginative expression or rhetorical hyperbole.”

An amendment to the bill on the Senate floor by Senate President Warren Petersen added statute of limitation changes to defamation cases — one that doesn’t begin until allegedly defamatory statements are deleted from a website — as well as definitions involving defamatory posts on the internet.

Petersen, who hopes to be Arizona’s next attorney general, said on the Senate floor last month that the bill “codifies” existing case law around defamation. How defamation happens on the internet, he continued, has “never been contemplated” by the courts.

That is simply not true.

“While the legislative sponsors may say or believe that this bill merely codifies existing law, it does not embrace the full range of legal protections that our judiciary has recognized or applied for more than a half century, and it would be a mistake to adopt a law so unnecessary, confusing and speech restrictive as this,” Bodney said.

Petersen’s amendment also creates other issues for the First Amendment and established case law.

“It overlooks other privileges established by the courts to ensure the breathing room that the First Amendment requires for matters of speech on public concern in particular,” Bodney said, adding that it essentially eliminates the statute of limitations on defamatory statements posted online. “It does not protect freedom of speech or of the press nearly so well or clearly as our courts have done. In fact, it would limit our First Amendment protections.”

Katelynn Contreras, a lobbyist representing the American Civil Liberties Union of Arizona, echoed those concerns when the bill was heard in the House Judiciary Committee on Wednesday morning.

Contreras argued that the “overly broad” language of the bill could target a litany of speech and create a chilling effect on internet speech in general.

One Democratic lawmaker said she had been targeted by opponents on social media, but making it easier to sue those foes isn’t the right way to respond.

“I’ve been the target of multiple campaigns and rhetoric out there and of course I believe in accountability…what people want to say about me, that is on them,” Rep. Alma Hernandez, D-Tucson said, adding that elected officials shouldn’t be above scrutiny. “At the end of the day, there are already laws in place that would hold people accountable.”

The bill passed out of the committee along party lines, as it did when the Senate considered the measure last month. It will next head to the full House of Representatives for consideration.

However, even if it were to be signed into law by Gov. Katie Hobbs, Bodney said it will be challenged in court.

“It is unnecessary, unclear and constitutionally unsound,” he said. “While it purports to codify defamation law, it omits several important protections that our courts have recognized as applicable fFirst Amendment defenses.”

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Arizona Mirror is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Arizona Mirror maintains editorial independence. Contact Editor Jim Small for questions: info@azmirror.com.

A federal judge in Maryland on Wednesday halted construction on a Trump administration immigration detention facility, ruling that officials likely violated federal environmental law by rushing the project forward without proper review.

U.S. District Judge Brendan A. Hurson granted Maryland's request for a temporary restraining order, blocking renovation of a warehouse in Williamsport for two weeks while the case proceeds. The order was signed at 5 p.m. Wednesday.

The judge found that the Department of Homeland Security likely failed to comply with the National Environmental Policy Act, which requires federal agencies to assess environmental impacts before undertaking major construction projects. The court found DHS had not completed either a required environmental impact statement or a basic environmental assessment before work began.

The state of Maryland sued ICE, DHS, and former Secretary Kristi Noem after the federal government paid $102.4 million for the Williamsport warehouse and awarded a $100 million-plus renovation contract to KVG LLC with a start date of March 6, just a day after a public comment period closed. The facility was slated to house 1,500 detainees. State environmental officials warned the existing infrastructure was dangerously insufficient, with sewage overflow posing public health risks to three nearby waterways, including the Potomac River.

"Construction at the scale necessary to convert the warehouse into an immigration detention facility without the necessary environmental reviews poses a serious risk to the nearby watersheds and the ecosystems therein," Maryland Department of Natural Resources Secretary Josh Kurtz said in a declaration filed with the court.

"The Court therefore agrees that continued renovation and construction at and around the Williamsport Warehouse will likely cause the State to suffer irreparable harm through injury to the State's environment," the judge wrote.

The internet cheered as the Trump administration suffered another loss.

Alexis Goldstein, candidate for the U.S. House in Maryland’s 6th district, cheered, "Fantastic news! This will block current work on the ICE detention center DHS wants to build in Hagerstown, MD. One thing I’ve learned from the CFPB fight: even if we win in court, we have to keep fighting on the Hill & in the streets!"

Aaron Reichlin-Melnick‬, senior fellow at the American Immigration Council, wrote on Bluesky, "HUGE."

Journalist Marisa Kabas‬ wrote on Bluesky, "hell yea!!!"

Democrat ‪Mark Bechtel‬cheered on Bluesky, "Awesome."

Novelist Jeri Smith-Ready‬ added, "YES!"

Lisa Scheid, managing editor of Spotlight PA Berks Bureau‬, warned the ruling could have "implications for PA."


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