Charity connected to Steve Bannon was being investigated by Nikki Fried’s office
The allegedly fraudulent online fundraising scheme President Donald Trump’s ex-political adviser was arrested and charged over Thursday is not being investigated for the first time.
Florida Agriculture Commissioner Nikki Fried’s office started looking into “We Build the Wall, Inc.” in May 2019.
Fried’s office took interest in the nonprofit in response to consumer complaints and complaints referred to the agency by Florida’s Office of the Attorney General, including allegations of questionable use of collected funds, the organization’s only having one director on its board instead of the required three and filing false statements about the board.
The group took in $30 million in revenue in 2019 and spent $21 million on administrative expenses, leaving it with a $9 million surplus according to limited financial information it provided Florida’s Department of Agriculture and Consumer Services in December 2019.
Upon further investigation, the department referred the investigation to the Federal Bureau of Investigation. As of Thursday, the charity’s status in Florida has been suspended, according to the department. The Attorney General’s office was not contacted by the U.S. Attorney’s Office in the Southern District of New York, where the case was assigned.
According to a statement from the U.S. Attorney’s Office, the group claimed that it raised more than $25 million to build a wall along the southern border of the United States. The organization repeatedly and falsely assured the public that it 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,” according to the statement.
The group was founded by Brian Kolfage, a Purple Heart recipient from Miramar Beach in the Florida Panhandle, who was wounded in the Iraq war in 2004. Bannon served as the board chairman.
Kolfage tweeted at the time of Fried’s investigation that it was politically motivated by Fried, a Democrat who also oversees Florida’s top consumer services agency. He added that the complaints about his nonprofit (which were published by Miami radio host Grant Stern) were made by Democrats or people who didn’t contribute to the charity.
“None are donors, one cites fake news, and all are democratic voters according to records. HAVE FUN!” he tweeted.
In a statement Thursday, Fried said the investigation has always been “non-partisan, independent and carried out with the professionalism it deserves.” The investigation remains active in Florida, and the department has suspended the charity registration for the organization.
“Anyone accused of defrauding Floridians should face the full measure of justice that is required,” she said.”As our department considers further action, I thank the U.S. Department of Justice and federal and state partners for their efforts to protect Florida’s consumers from alleged fraud.”
Kolfage, Bannon, Sarasota venture capitalist Andrew Badolato and Tim Shea, of Colorado, were all charged with 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.
All four men will go before federal judges in their home states Thursday.
This story was originally published August 20, 2020 at 11:44 AM.