President Trump's Ex-Aide Steve Bannon Pleads Not Guilty on Border Wall Scheme

Steve Bannon, President Donald Trump's former chief strategist, was pulled from his luxury yacht and was arrested on August 20 on allegations that he and three associates ripped off donors trying to fund a southern border wall. Bannon is the latest in a long list of Trump allies to be charged with a crime.

Border wall scheme

The organizers of the group called "We Build The Wall" posed as people who are willing to help President Trump build a barrier along the U.S.- Mexico border, just like what he promised during his 2016 campaign.

The group raised more than $25 million from thousands of donors, and they pledged that 100% of the money would be used to build the wall, as reported by The Guardian.

However, according to the criminal charges that were revealed on August 20, most of the money they accumulated never made it to the project. Instead, the money was placed in the pockets of the group members, including Steve Bannon, who was once the chief strategist at the White House.

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Bannon allegedly took $1 million and used some to pay co-defendant Brian Kolfage, the founder of the project, and to cover thousands of his personal expenses.

Hours after his arrest, Bannon pleaded not guilty of the charges during an appearance in a federal court in Manhattan. Bannon is the latest addition to the list of Trump associates who have been charged with crimes.

President Trump has expressed his willingness to use his pardon power as president to help his political allies escape jail time. One of the instances is Trump pardoning political adviser Roger Stone.

Bannon appeared by video at his hearing, his hands were cuffed in front of him, and a white mask covered most of his face. The magistrate judge approved Bannon's release on $5 million bail, secured by $1.75 million in assets.

The other prominent members of the wall group included its general counsel Erik Price, who is the founder of the security firm Blackwater, Kansas Secretary of State Kris Kobach, former major league baseball pitcher Curt Schilling and former Republican Rep. Tom Tancredo of Colorado.

After Bannon's arrest, President Trump distanced himself from him and the project. He told reporters at the White House that when he read about what happened, he "didn't like it" because the money is supposed to be for the government and not private people.

Attorney General William Barr told The Associated Press that he was informed about the investigation into Bannon months before his arrest, but he did not say whether President Trump knew about it too.

According to the indictment, Bannon and his associates used fake invoices to try to hide their efforts to pocket the money.

How the scheme worked

Bannon and his co-defendants allegedly paid Kolfage $100,000 and an additional $20,000 monthly, while claiming that they served as volunteers and that Kolfage was not given a single dime, as reported by The New York Times.

The indictment also stated that Kolfage sent mass emails to his donors asking them to purchase from his business, telling them that his coffee company was the only way that he can keep his family "fed and secure a roof over their head."

Kolfage allegedly spent over $350,000 that he received on payments toward a boat, on home renovations, a golf cart, a luxury SUV, cosmetic surgery, jewelry, credit card debt and personal tax payments.

The charges included conspiracy to commit money laundering and conspiracy to commit wire fraud.