Steve Bannon charged with money laundering, conspiracyThe former White House adviser faces state charges in a charity fraud case after a Trump pardon let him evade federal counts.
NEW YORK — Longtime Trump ally and right-wing firebrand Stephen Bannon, who dodged federal charges in a charity fraud case thanks to a last-minute presidential pardon, must now face the music in New York state court.
Bannon, 68, arrived in handcuffs to a crowded arraignment in Manhattan’s New York County Supreme Court Thursday afternoon, hours after surrendering to Manhattan District Attorney Alvin Bragg. Moments before the controversial former White House adviser entered, Bannon remarked, “They will never shut me up, they’ll have to kill me first.” But inside, he said little, other than acknowledging a judge’s instructions — a heavy contrast to the bombastic and inflammatory persona that has become his trademark.
A six-count indictment charges Bannon with money laundering, conspiracy and scheming to defraud for his alleged role in We Build the Wall, a group that raised at least $15 million to construct a barrier along the border with Mexico but skimmed the donations.
The group publicly told donors its president and CEO, Air Force veteran Brian Kolfage, would not be compensated for his efforts. But Bannon allegedly arranged to pay him by moving money from We Build The Wall through a company he controlled. Kolfage previously pleaded guilty in the federal case. Only Bannon and the company were charged by the state.
Bannon pleaded not guilty Thursday. If convicted on the top charge, he faces a maximum 5 to 15 years in prison, according to Bragg.
“The simple truth is that it is a crime to profit off the backs of donors by making false pretenses,” Bragg said at the press conference. “We are here to say today in one voice that in Manhattan and in New York you will be held accountable for the defrauding of donors.”
Addressing reporters and bystanders outside the courthouse, Bannon suggested that the case was politically motivated. Reporters peppered him with questions about the pardon, his alleged co-conspirators’ guilty pleas and his relationship to the former president — in turn, Bannon called the crowd “paupers … in bondage” and urged them to check out his podcast.
His lawyer did not immediately respond to a request for comment.
Acting Supreme Court Justice Juan Merchan ordered Bannon to surrender his passports. Prosecutors argued he has the means and the disposition to flee, citing his recent, unrelated contempt of Congress conviction for defying a subpoena related to the Jan. 6 attack on the Capitol.
The judge also warned Bannon that if he is willfully absent during court proceedings, they could move forward without him.
In 2020, federal prosecutors accused Bannon of pocketing some $1 million in donations, using them to pay off hundreds of thousands of dollars of his own personal expenses. That year, federal agents arrested Bannon on the charges while he was aboard a luxury yacht off the coast of Connecticut. He pleaded not guilty, but was dropped from the case after Trump issued the pardon in the twilight hours of his presidency.
Presidential pardons apply only to federal charges and cannot shield Bannon from a state prosecution. Former Manhattan DA Cyrus Vance opened a state investigation that his successor, Bragg, continued when he took office last year.
At a press conference announcing the charges, New York Attorney General Tish James said Bannon’s presidential pardon unfairly leveraged his political connections.
Kolfage and another federal co-defendant pleaded guilty to wire fraud conspiracy. Their sentencing scheduled for this week was pushed back to December. A mistrial was declared in a third alleged co-conspirator’s trial when a jury could not reach a unanimous verdict.
Bragg wouldn’t say whether Bannon’s alleged co-conspirators in the federal case were cooperating in the state’s prosecution.
Federal prosecutors previously said the group raised over $25 million, but the state’s indictment Thursday only referred to about $15 million. Likewise, the state did not allege Bannon used donations to cover personal expenses, as federal prosecutors had.
Bragg chalked the discrepancies up to the differences between state and federal jurisdiction, as well as the laws Bannon was being charged under. State investigators only looked at money raised through GoFundMe, where they could be certain donors saw a disclaimer that no proceeds would go to Kolfage.
When pressed whether Bannon allegedly pocketed any of the money, James told reporters, “I think your inference is correct,” suggesting he had.
As Bannon arrived at the DA’s office Thursday morning, some onlookers lobbed insults at the far-right iconoclast, who has stoked controversy at frequent turns. In the past, Bannon has suggested Anthony Fauci, the nation’s leading infectious disease expert, should be executed. He has also echoed Trump’s false claims that the 2020 election was stolen.
“Stop hurting America, you greasy grifter,” one woman yelled as Bannon entered the building, his brief remarks drowned out by the heckling.
https://www.politico.com/news/2022/09/08/steve-bannon-surrenders-to-manhattan-da-00055427Why Trump won't like Steve Bannon's New York indictmentBannon’s legal fate is a portent for his old boss, former President Donald Trump.
Former White House staffer Steve Bannon turned himself in to New York authorities Thursday morning to face a set of charges that should be intensely familiar to him: money laundering, scheming to defraud and conspiracy.
It’s the second time in as many years that Bannon's been accused of bilking donors with promises to construct a wall on the southern border. He was indicted by a federal grand jury that accused him of the same in August 2020. While these new New York state charges threaten to interrupt his current role as a Christian nationalist election army assembler, they also serve as a reminder to his onetime boss, former President Donald Trump, about the limits of protection from the law that even the presidency can afford.
Importantly, Bannon’s legal fate is a portent for his former boss. It indicates that even if Trump had issued himself a “self-pardon” in the closing days of his term, as he reportedly considered, it wouldn’t protect him from the state and local investigations into him and his businesses. As he prepares to take another run at the presidency, Trump is likely to become more convinced than ever that only the Oval Office can provide the legal safety he craves.
Bannon was first indicted along with three others in August 2020 in relation to the “We Build the Wall” organization. Federal prosecutors claimed in their affidavit that the men raised $25 million under the guise of being a “volunteer organization.” Rather than building a wall on the border with Mexico, according to prosecutors, they built up massive personal bank accounts “using fake invoices and sham 'vendor' arrangements.” Bannon pleaded not guilty to those charges.
I’m obligated to say that Bannon “allegedly” did these things as he has never stood trial for these accusations. In one of his last acts as president, Trump issued Bannon a pardon that absolved him of the two federal charges he faced: conspiring to commit wire fraud and conspiring to commit money laundering.
It was an affront to justice, but an act the White House said at the time was justified because Bannon “has been an important leader in the conservative movement and is known for his political acumen."
Since then, Bannon has kept himself busy continuing to promote Trump’s conspiracy theories about the 2020 election, agitating the base with talk of dismantling the deep state, and organizing reactionaries to intimidate voters at the polls. He’s also stood opposed to the House Jan. 6 committee’s investigation efforts and is now awaiting sentencing after being found guilty of contempt of Congress in July.
That conviction and the new state charges he now faces illustrate the limits of even Trump’s abuse of his powers. While the president has near-absolute leeway to waive convictions, commute sentences or, as in Bannon’s case, pre-empt trials, that authority is only over federal charges. Against state-level charges, a presidential pardon is worthless.
Soon after Bannon’s reprieve was issued, the Manhattan district attorney’s office opened an investigation into the alleged “We Build the Wall” scam. That investigation came to bear Thursday as Bannon turned himself in. In a statement to NBC News on Tuesday, Bannon said, "This is nothing more than a partisan political weaponization of the criminal justice system."
Moreover, Bannon’s pardon was particularly narrow. Even if Manhattan District Attorney Alvin Bragg wasn’t the one to charge Bannon under state law for the alleged con job, there was still plenty of room for the Justice Department to do so, former prosecutor Andrew Weissmann wrote for Just Security last year. And as the contempt of Congress conviction highlighted, Bannon’s was not a blanket pardon for all crimes he may have committed in general.
Trump won’t like this reminder of the reach that states can bring to bear against him and his cronies. His company is also under civil investigation in New York state, a case that steadily marches forward even as Bragg pursues a criminal investigation into the Trump Organization. And his attempt to force Georgia officials to declare him the winner of the 2020 election is the subject of an ongoing Fulton County investigation, one that will only close in tighter on Trump as more of his allies are forced to testify.
https://www.msnbc.com/opinion/msnbc-opinion/opinion-bannon-s-indictment-unwelcome-reminder-trump-n1298726