Prosecutors are closing in on Steve Bannon as 'several' of his close allies get subpoenaed by grand jury: CNN
Former White House chief strategist Stephen Bannon. (AFP/File / Michal Cizek)

Prosecutors in New York are "moving closer" to slapping Trump ally Steve Bannon with criminal charges and have subpoenaed "several" members of his inner circle to testify before a grand jury, reports CNN.

According to CNN's sources, Bannon is facing scrutiny for allegedly defrauding investors in the "We Build the Wall" fundraising campaign.

Bannon had previously been indicted on federal charges for the scheme, but was subsequently given a last-minute pardon by former President Donald Trump right before he left office in January 2021.

While Trump's pardon wiped out Bannon's exposure to federal charges, they can't save him from charges leveled by state-level prosecutors.

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"The subpoenas are the clearest indication that the Manhattan district attorney's criminal investigation into Bannon's fundraising efforts is intensifying and could lead to possible charges against former President Donald Trump's onetime adviser," CNN writes.

CNN's sources say that New York prosecutors have been quietly gathering evidence against Bannon for the last year by subpoenaing bank records related to the "We Build the Wall" scheme.

Bannon is also facing federal charges for being in criminal contempt of Congress for completely refusing to cooperate with the House Select Committee investigating the January 6th Capitol riots.