{"id":25499,"date":"2020-08-20T14:30:27","date_gmt":"2020-08-20T18:30:27","guid":{"rendered":"http:\/\/stateofthenation.co\/?p=25499"},"modified":"2020-08-20T14:30:27","modified_gmt":"2020-08-20T18:30:27","slug":"this-is-how-deep-state-is-sending-a-serious-message-to-every-major-trump-supporter-back-him-and-you-risk-a-malicious-prosecution","status":"publish","type":"post","link":"https:\/\/stateofthenation.co\/?p=25499","title":{"rendered":"This is how <i>Deep State<\/i> is sending a serious message to every major Trump supporter&#8212;back him and you risk a malicious prosecution."},"content":{"rendered":"<h1>Steve Bannon Charged With Fraud By Federal Prosecutors; Arrested On Westbrook Yacht<\/h1>\n<p><!--more-->ZeroHedge.com<\/p>\n<p><strong>Update (1300ET):<\/strong>\u00a0The Hartford Courant just reported that Steve Bannon was arrested by &#8211; who else? &#8211; agents of the Postal Service while aboard a $28 million yacht owned by exiled Chinese businessman Guo Wengui.<\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-0\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/index.html?dnt=false&amp;embedId=twitter-widget-0&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1296493890107842560&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Fsteve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=223fc1c4%3A1596143124634&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1296493890107842560\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>Here&#8217;s more from\u00a0<a href=\"https:\/\/www.courant.com\/breaking-news\/hc-br-bannon-arrested-connecticut-20200820-aogsf64fr5axpheyas2xhsst7u-story.html\">the Courant&#8217;s<\/a>\u00a0Ed Mahoney:<\/p>\n<blockquote><p>Stephen K. Bannon, former top advisor to President Donald Trump, was arrested while on a yacht off Westbrook early Thursday, law enforcement sources said.<\/p>\n<p>Bannon was arrested by inspectors from the U.S. Postal Service while cruising Long Island Sound near Westbrook in a $28 million mega yacht called\u00a0Lady May.<\/p>\n<p>The yacht was seen anchored off West Beach in Westbrook early Thursday, local residents said.<\/p><\/blockquote>\n<p>A company that\u00a0<a href=\"https:\/\/www.zerohedge.com\/political\/fbi-probes-company-tied-steve-bannon-chinese-exile-and-morgan-stanley-heir?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">both Guo and Bannon<\/a>\u00a0have ties to is reportedly being investigated by the FBI, though the fact that the two business partners were spending time together isn&#8217;t very scandalous all by itself.<\/p>\n<p>* * *<\/p>\n<p><strong>Update (1150ET):<\/strong>\u00a0In his first comments on Bannon&#8217;s arrest, President Trump recalled that he didn&#8217;t support the &#8220;We Build The Wall&#8221; project at the time, and added that he thought it looked like &#8220;showboating&#8221;. &#8220;This is a job for the government, not private people,&#8221; he said.<\/p>\n<p>Trump even tweeted his objections in July, as questions about the nonprofit and its work were being raised by watchdog groups and the press.<\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-1\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/index.html?dnt=false&amp;embedId=twitter-widget-1&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1282276752090431490&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Fsteve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=223fc1c4%3A1596143124634&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1282276752090431490\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<div class=\"ad__wrapper-element\"><\/div>\n<p>However, he added that Bannon&#8217;s arrest &#8220;was a very bad thing&#8221;.<\/p>\n<p>&#8220;I didn&#8217;t like that project, I thought it was being done for showboating regions,&#8221; Trump said.<\/p>\n<p>When pressed about reporters about the &#8220;lawlessness&#8221; in Trump&#8217;s administration (because &#8220;it&#8217;s not just Steve Bannon &#8211; it&#8217;s Michael Flynn, it&#8217;s Roger Stone&#8230;&#8221;) Trump shot back that there was plenty of &#8220;lawlessness&#8221; in the Obama Administration.<\/p>\n<p>&#8220;They spied on my campaign,&#8221; he said.<\/p>\n<p>Meanwhile, Scaramucci, who was Bannon&#8217;s arch-nemesis during Mooch&#8217;s 11 days in the White House, couldn&#8217;t help himself.<\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-2\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/index.html?dnt=false&amp;embedId=twitter-widget-2&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1296472033178591232&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Fsteve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=223fc1c4%3A1596143124634&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1296472033178591232\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>And neither could Paul Krugman.<\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-3\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/index.html?dnt=false&amp;embedId=twitter-widget-3&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1296470825676222465&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Fsteve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=223fc1c4%3A1596143124634&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1296470825676222465\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>We suspect even Jared Kushner, who has no presence on social media and rarely speaks to the press (except recently after the UAE-Israel deal) probably cracked a smile when he heard the news), since the former chief strategist reportedly made several high-profile enemies within Trump&#8217;s circle during his time in the West Wing.<\/p>\n<p>* * *<\/p>\n<p><strong>Update (1115ET):<\/strong>\u00a0Beijing is already celebrating Bannon&#8217;s arrest.<\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-4\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/index.html?dnt=false&amp;embedId=twitter-widget-4&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1296462771836649472&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Fsteve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=223fc1c4%3A1596143124634&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1296462771836649472\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>Another detail about Bannon&#8217;s arrest has slipped out. According to a local TV news station, Bannon was reportedly arrested Thursday while aboard a boat in Westbrook, Conn. The boat is not Bannon&#8217;s, the law enforcement source told\u00a0<a href=\"https:\/\/www.nbcnewyork.com\/news\/politics\/former-trump-campaign-manager-steve-bannon-indicted-for-fraud-in-ny\/2576990\/\">NBC New York. The boat was reportedly 150 feet long, making it a pretty large yacht.<\/a><\/p>\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-5\" class=\"\" title=\"Twitter Tweet\" src=\"https:\/\/platform.twitter.com\/embed\/index.html?dnt=false&amp;embedId=twitter-widget-5&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1296473907822821379&amp;lang=en&amp;origin=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Fsteve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york&amp;siteScreenName=zerohedge&amp;theme=light&amp;widgetsVersion=223fc1c4%3A1596143124634&amp;width=550px\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1296473907822821379\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<p>* * *<\/p>\n<p>Former Trump advisor Steve Bannon has been arrested and indicted by the Manhattan US attorney for defrauding people in an online fundraising scheme.<\/p>\n<p>The arrest is tied to the &#8220;We Build The Wall&#8221; online fundraising scheme which invited Americans to donate to a campaign to build the wall with private funds. Bannon was arrested alongside Brian Kolfage, Andrew Badolato and Timothy Shea, all four of whom were involved in the online fundraising project (<a href=\"https:\/\/www.zerohedge.com\/news\/2018-12-19\/build-wall-gofundme-page-raises-1-million-two-days\">we reported<\/a>\u00a0on the fundraiser back in 2018). Prosecutors allege that after promising not to use &#8220;one cent&#8221; of the money raised in the GoFundMe page and other fundraising venues to pay themselves, the men &#8211; particularly Kolfage, the public face of the endeavor &#8211; broke this promise. In particular, Kolfage used much of the money to finance a &#8220;lavish lifestyle,&#8221; according to prosecutors (more information can be found in the press release below).<\/p>\n<p>According to the indictment, which was unsealed in Manhattan Federal Court on Thursday, Bannon and the three men willfully conned donors with their promise to build the wall with private money. Per the indictment, Bannon once described WBTW as a &#8220;volunteer organization&#8221;. Eventually &#8220;hundreds of thousands of dollars&#8221; were siphoned from the campaign, money supplied by donors, including some in the Southern District. Bannon allegedly collected more than $1 million even though little of the wall was ever built.<\/p>\n<p>Feds say Bannon is in federal custody, and Fox News flashed video of the Bannon &#8220;perp walk&#8221; shortly after news of his arrest hit. According to\u00a0<a href=\"https:\/\/apnews.com\/6119b50079aaf30ba54b8e40bd36033b?utm_campaign=SocialFlow&amp;utm_medium=AP&amp;utm_source=Twitter\">the AP<\/a>, a call to the office of Bannon\u2019s lawyer wasn&#8217;t answered Thursday morning, while a spokeswoman for Bannon didn&#8217;t immediately respond to a request for comment.<\/p>\n<p>Facing charges of 2 counts of conspiracy to commit money laundering and to commit wire fraud.\u00a0<strong>Both of those charges carry a 20 year sentence.<\/strong><\/p>\n<p>Notably,\u00a0<a href=\"https:\/\/www.zerohedge.com\/political\/fbi-probes-company-tied-steve-bannon-chinese-exile-and-morgan-stanley-heir\">this is a separate issue<\/a>\u00a0from the FBI investigation into a media venture involving Bannon, an exiled Chinese businessman, and the son of Morgan Stanley&#8217;s co-founder.<\/p>\n<p>The arrest comes just hours before Joe Biden is set to accept the Democratic nomination. Bannon was indicted by Audrey Strauss, the successor (and former deputy head) to\u00a0<a href=\"https:\/\/www.zerohedge.com\/political\/another-friday-night-massacre-doj-abruptly-axes-prosecutor-who-targeted-giuliani-trump\">Geoffrey Berman, the US attorney in Manhattan who was messily pushed out by Bill Barr a few weeks ago.<\/a><\/p>\n<p>While these charges are the culmination of a separate investigation from the one that was leaked to the WSJ yesterday (and which we mentioned above), it&#8217;s seems to be part of the same wave of charges and aspersions being cast upon the former White House chief strategist. Aside from the investigation revealed yesterday, there have been multiple leaks about a &#8220;previously unpublicized&#8221; letter sent by the Senate Intel Committee to the DoJ asking that Bannon be investigated for allegedly lying in his testimony to the Committee. The letter, which was delivered to the DoJ last July when Richard Burr was still committee chairman, was a &#8220;bipartisan&#8221; effort.<\/p>\n<p><u><strong>Read the DoJ\u00a0<a href=\"https:\/\/www.justice.gov\/usao-sdny\/pr\/leaders-we-build-wall-online-fundraising-campaign-charged-defrauding-hundreds-thousands\">press release<\/a>\u00a0explaining the charges below:<\/strong><\/u><\/p>\n<p>Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Field Office of the United States Postal Inspection Service (\u201cUSPIS\u201d), announced the unsealing of an indictment charging BRIAN KOLFAGE, STEPHEN BANNON, ANDREW BADOLATO, and TIMOTHY SHEA for their roles in defrauding hundreds of thousands of donors in connection with an online crowdfunding campaign known as \u201cWe Build the Wall\u201d that raised more than $25 million.\u00a0 The defendants were arrested this morning.\u00a0 KOLFAGE will be presented today before U.S. Magistrate Judge Hope T. Cannon in the Northern District of Florida.\u00a0 BANNON will be presented today in the Southern District of New York.\u00a0 BADOLATO will be presented today before U.S. Magistrate Judge Thomas Wilson in the Middle District of Florida.\u00a0 SHEA will be presented today before U.S. Magistrate Judge Kristen L. Mix in the District of Colorado.\u00a0 The case is assigned to U.S. District Judge\u00a0Analisa Torres\u00a0in the Southern District of New York.<\/p>\n<p>Acting U.S. Attorney Audrey Strauss said: \u00a0\u201cAs 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.\u00a0 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.\u00a0 We thank the USPIS for their partnership in investigating this case, and we remain dedicated to rooting out and prosecuting fraud wherever we find it.&#8221;<\/p>\n<p>Inspector-in-Charge Philip R. Bartlett said: \u00a0\u201cThe defendants allegedly engaged in fraud when they misrepresented the true use of donated funds. \u00a0As alleged, not only did they lie to donors, they schemed to hide their misappropriation of funds by creating sham invoices and accounts to launder donations and cover up their crimes, showing no regard for the law or the truth.\u00a0\u00a0 This case should serve as a warning to other fraudsters that no one is above the law, not even a disabled war veteran or a millionaire political strategist.&#8221;<\/p>\n<p>According to the Indictment[1]\u00a0unsealed today in Manhattan federal court:<\/p>\n<p>Starting in approximately December 2018, BRIAN KOLFAGE, STEPHEN BANNON, ANDREW BADOLATO, and TIMOTHY SHEA, and others, orchestrated a scheme to defraud hundreds of thousands of donors, including donors in the Southern District of New York, in connection with an online crowdfunding campaign ultimately known as \u201cWe Build The Wall\u201d that raised more than $25 million to build a wall along the southern border of the United States.\u00a0 In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would \u201cnot take a penny in salary or compensation\u201d and that \u201c100% of the funds raised . . . will be used in the execution of our mission and purpose\u201d because, as BANNON publicly stated, \u201cwe\u2019re a volunteer organization.&#8221;<\/p>\n<p>Those representations were false.\u00a0 In truth, KOLFAGE, BANNON, BADOLATO, and SHEA received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization\u2019s public representations.\u00a0 In particular, KOLFAGE covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall, while BANNON, through a non-profit organization under his control (\u201cNon-Profit-1\u201d), received over $1 million from We Build the Wall, at least some of which BANNON used to cover hundreds of thousands of dollars in BANNON\u2019s personal expenses.\u00a0 To conceal the payments to KOLFAGE from We Build the Wall, KOLFAGE, BANNON, BADOLATO, and SHEA devised a scheme to route those payments from We Build the Wall to KOLFAGE indirectly through Non-Profit-1 and a shell company under SHEA\u2019s control, among other avenues.\u00a0 They did so by using fake invoices and sham \u201cvendor\u201d arrangements, among other ways, to ensure, as KOLFAGE noted in a text message to BADOLATO, that his pay arrangement remained \u201cconfidential\u201d and kept on a \u201cneed to know\u201d basis.<\/p>\n<p>Read the indictment below:<\/p>\n<p><a title=\"View u.s. v. Brian Kolfage Stephen Bannon Et Al. Indictment 20-Cr-412 0 on Scribd\" href=\"https:\/\/www.scribd.com\/document\/473063112\/u-s-v-Brian-Kolfage-Stephen-Bannon-Et-Al-Indictment-20-Cr-412-0#from_embed\">u.s. v. Brian Kolfage Stephen Bannon Et Al. Indictment 20-Cr-412 0<\/a>\u00a0by\u00a0<a title=\"View Zerohedge's profile on Scribd\" href=\"https:\/\/www.scribd.com\/publisher\/7989050\/Zerohedge#from_embed\">Zerohedge<\/a>\u00a0on Scribd<\/p>\n<p><iframe loading=\"lazy\" id=\"doc_31055\" class=\"scribd_iframe_embed\" title=\"u.s. v. Brian Kolfage Stephen Bannon Et Al. Indictment 20-Cr-412 0\" src=\"https:\/\/www.scribd.com\/embeds\/473063112\/content?start_page=1&amp;view_mode=scroll&amp;access_key=key-jaKax37bVhGkOlOGYYLY\" width=\"100%\" height=\"600\" frameborder=\"0\" scrolling=\"no\" data-aspect-ratio=\"0.7727272727272727\" data-auto-height=\"false\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p>As TV commentators chew over what this means for the election, and whether the removal of Berman had anything to do with the Bannon case (even though Berman was handling a case involving Trump&#8217;s finances that hit much closer to home for Trump). Though Trump fired Bannon six months into his administration, speculation about whether Trump might step in to help his old friend will likely intensify, even though the case likely won&#8217;t have run its course before the start of the next presidential term.\u00a0<a href=\"https:\/\/jonathanturley.org\/2020\/06\/29\/the-rush-of-judgment-how-recent-stories-on-barr-left-the-relevant-facts-and-law-behind\/\">What&#8217;s more, as Jonathan Turley notes, Bannon is just the latest Trump world figure to be prosecuted under Bill Barr.<\/a><\/p>\n<p>Clearly the charges against Bannon suggest that the investigations have continyed in an independent fashion, despite all the warnings from Trump and Barr&#8217;s critics. Just like how Trump&#8217;s SCOTUS picks were supposed to destroy abortion rights.<\/p>\n<p>And if Bannon is being prosecuted for allegedly helping others exploit GoFundMe donations,\u00a0<a href=\"https:\/\/jonathanturley.org\/2020\/08\/20\/main-suspect-in-brutal-attack-at-blm-protest-seeks-donations-while-evading-police\/\">will we see similar prosecutions of figures on the political left?<\/a><\/p>\n<p>Of course, the notion that Kolfage (the real target of the probe, though Bannon&#8217;s name is atop the marquee) &amp; company defrauded unsuspecting rubes is undercut slightly by the fact that the GoFundMe page and &#8220;We Build The Wall&#8221; were almost immediately attacked by<a href=\"https:\/\/dailycaller.com\/2019\/01\/24\/border-wall-gofundme-brian-kolfage\/\">\u00a0nonprofits like Charity Watch, and conservative media outlets like the Daily Caller,<\/a>\u00a0as having little to no accountability, just like plenty of other charities that legally operate in the US.<\/p>\n<p>___<br \/>\n<a href=\"https:\/\/www.zerohedge.com\/political\/steve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york\">https:\/\/www.zerohedge.com\/political\/steve-bannon-arrested-and-charged-fraud-federal-prosecutors-new-york<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Steve Bannon Charged With Fraud By Federal Prosecutors; Arrested On Westbrook Yacht<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25499","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/25499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25499"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/25499\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}