Manhattan District Attorney Alvin L. Bragg, Jr., and New York Attorney General Letitia James today announced the indictment of STEPHEN K. BANNON, 68, and WEBUILDTHEWALL, INC., a Florida-based not-for-profit corporation, for a year-long fundraising scheme that netted more than $15 million from thousands of donors across the country based on false promises, and for laundering the proceeds of that scheme in order to advance and conceal the fraud. Both defendants are charged in a New York State Supreme Court indictment with two counts of Money Laundering in the Second Degree, two counts of Conspiracy in the Fourth Degree, one count of Scheme to Defraud in the First Degree, and one count of Conspiracy in the Fifth Degree.[1]

“It is a crime to turn a profit by lying to donors, and in New York, you will be held accountable,” said District Attorney Bragg. “As alleged, Stephen Bannon acted as the architect of a multi-million dollar scheme to defraud thousands of donors across the country – including hundreds of Manhattan residents. Each and every day, my Office works to ensure that when New Yorkers hand over money, they know where it’s going and who it’s going to – without any smokescreens or false promises. I thank Attorney General James for her partnership, as well as the numerous attorneys, investigators, analysts, and so many more from both my Office and the Attorney General’s Office who have worked so diligently to bring today’s indictment.”

“There cannot be one set of rules for everyday people and another for the wealthy and powerful – we all must play by the same rules and must obey the law,” said Attorney General James. “Mr. Bannon took advantage of his donors’ political views to secure millions of dollars which he then misappropriated. Mr. Bannon lied to his donors to enrich himself and his friends. We will continue to take on fraudulent behavior in every corner of society, including white collar criminals, because no one is above the law. I thank District Attorney Bragg for his close partnership on this matter and commend the dedicated teams at the Attorney General’s Office and the Manhattan District Attorney’s Office for their hard work.”

According to court documents and statements made on the record in court, from January 11, 2019, through December 31, 2019, WEBUILDTHEWALL, through BANNON and others, represented that all of the money donated to WEBUILDTHEWALL would be directed toward the organization’s stated purpose of building a wall on the border of the United States and Mexico using private funds. BANNON and others specifically represented that none of the donations would be used to pay the salary of WEBUILDTHEWALL’s president, who stated on multiple occasions that he was taking no salary from WEBUILDTHEWALL. In reality, WEBUILDTHEWALL paid its president more than $250,000 in 2019, despite the organization’s promises to the contrary.

WEBUILDTHEWALL also attempted to obscure those payments by laundering them through third-party entities, including another non-profit corporation controlled by BANNON. BANNON facilitated more than $100,000 in salary payments to WEBUILDTHEWALL’s president by directing WEBUILDTHEWALL to transfer money to BANNON’s organization, and then paying WEBUILDTHEWALL’s president from that intermediary organization.

In August 2020, BANNON and three others were indicted by the United States Attorney’s Office for the Southern District of New York for crimes related to WEBUILDTHEWALL’s fundraising scheme. On January 20, 2021, BANNON received a presidential pardon on the federal matter from former President Donald J. Trump.

District Attorney Bragg thanked New York Attorney General Letitia James and her staff, particularly Gerard Murphy, Bureau Chief of the Attorney General’s Public Integrity Bureau, and Gary T. Fishman, the Attorney General’s Director of the Crime Proceeds Strike Force and Special Advisor to the Criminal Justice Division, for their continued partnership and collaboration on this matter.

Assistant D.A.s Michael Frantel and Daniel Passeser – along with Special Assistant D.A. Gregory Morril from the New York State Office of the Attorney General – are handling the prosecution of this case under the supervision of: Assistant D.A. Julieta V. Lozano, Chief of the Major Economic Crimes Bureau; Executive Assistant D.A. Christopher Conroy, Special Advisor to the Investigations Division; and Executive Assistant D.A. Susan Hoffinger, Chief of the Investigation Division.

Senior Financial Intelligence Unit Administrator Rosalind October, Financial Intelligence Analyst Darya Dergacheva, and Paralegals Jackson Howell, Willa Grimes, and former paralegals Anna Kuritzkes and Nicholas Manriquez of the Major Economic Crimes Bureau also assisted with the case, as did Legal Support Analysts Crystal Bisbano, Grace Koh, and former Legal Support Analyst Jack Jones of the New York State Office of the Attorney General. Assistance was also provided by Jeremy Rosenberg, Supervising Rackets Investigator, Miguel Pena and Anthony Santoro, Senior Rackets Investigators, and Detective Alexandre Ramirez from the New York State Office of the Attorney General.

Additional assistance was provided by: Kenneth Zorn, Forensic Accountant Investigator, under the supervision of Irene Serrapica, Principal Deputy Bureau Chief of the Forensic Accounting and Financial Investigations Bureau, and Robert Demarest, Chief of the Forensic Accounting and Financial Investigations Bureau; Borislav Vestfrid, Senior Computer Forensic Analyst, under the supervision of Steven Moran, Director of the High Technology Analysis Unit; and Olivia Savell, Privilege Review Data Specialist, under the supervision of Caroline Serino, Deputy Chief of the Privilege Review Unit, and Shannon Goldberg, Chief of the Privilege Review Unit.

 

Defendant Information:

STEPHEN K. BANNON
Washington, D.C.

Charges:

• Money Laundering in the Second Degree, a Class C Felony, two counts
• Conspiracy in the Fourth Degree, a Class E Felony, two counts
• Scheme to Defraud in the First Degree, a Class E Felony, one count
• Conspiracy in the Fifth Degree, a Class A Misdemeanor, one count

 

WEBUILDTHEWALL, INC.
Florida

Charges:

• Money Laundering in the Second Degree, a Class C Felony, two counts
• Conspiracy in the Fourth Degree, a Class E Felony, two counts
• Scheme to Defraud in the First Degree, a Class E Felony, one count
• Conspiracy in the Fifth Degree, a Class A Misdemeanor, one count

[1] The charges contained in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.