Trump’s inaugural committee in multi-million Dollar fraud scandal

This is not the best of times for President Donald Trump of US following a subpoena issued to his inaugural committee who are suspected of conspiracy to defraud the United States, wire fraud and money laundering.

The writ for documents was issued on Monday by the Manhattan US attorney’s office, just weeks after it emerged the nonprofit organisation was under investigation over alleged misspending of the $107m (£82m) it had raised from donors.

The investigation is reportedly examining whether some of the committee’s donors gave money in exchange for policy concessions, influencing administration positions or access to the incoming administration.

Prosecutors also showed interest in whether any foreigners illegally donated to the committee.

Federal law prohibits foreign contributions to inaugural funds.

The subpoena seeks a range of documents from the committee, including all information related to donors, vendors, contractors, committee bank accounts and any foreign contributors to the fund, according to a copy seen by The Washington Post.

It also asks for specific information about benefits provided to donors, training documents for fundraisers and payments made directly by donors to vendors.

Although campaign finance laws restrict the size of campaign contributions, inaugurations can accept unlimited donations, including from corporations.

The $107m raised by Mr. Trump’s inaugural committee, chaired by real estate developer and investor Thomas Barrack, was the largest in history and more than twice as much as that raised for Barack Obama’s assumption of office in 2009, according to Federal Election Commission filings.

Donations were made by a range of wealthy supporters of the president and corporate interests.

The committee’s inaugural spending has been shrouded in controversy after it failed to account for as much as $42m (£32m) in spending.

“We have just received a subpoena for documents. While we are still reviewing the subpoena, it is our intention to cooperate with the inquiry,” a spokesperson for the committee said in a statement.

Advertisement

It comes as the president’s homeland security secretary, Kirstjen Nielsen, agreed to testify next month before a house panel on the Trump administration’s border security policies.

“She should be ready to defend the administration’s border security actions and its plans to improve its border security agenda going forward,” Bennie Thompson, chair of the homeland security committee, said.