The allegations suggest that the principles of generosity extended to Bannon and Badolato as well. Prosecutors highlight that Kolfage previously claimed on social media that all contributions would exclusively benefit the wall project and that “the Board won’t see any of that money!”
In the end, many donors chose not to request refunds and allowed their funds to be directed to We Build the Wall, based on repeated promises that their donations would solely be allocated for construction purposes. However, prosecutors contend that several hundred thousand dollars of those funds were misappropriated.
While We Build the Wall did allocate some funds toward its intended purpose, the indictment does not clarify the exact amount. Prosecutors accuse Kolfage, Bannon, and Badolato of conspiring to pay Kolfage an initial sum of $100,000 along with monthly payments of $20,000, all under the table. To conceal these transactions, they allegedly funneled the payments through a different nonprofit organization controlled by Bannon and Badolato. The initial transfer occurred on February 11, just a month after GoFundMe had halted funding. Subsequently, every month, another $20,000 was transferred from We Build the Wall to Bannon’s nonprofit, which would then send the funds to Kolfage.
As outlined in court filings, the scheme evolved further. The nonprofit began processing payments to Kolfage’s spouse, fraudulently labeling them as “media” on tax documents. Beginning in April 2019, Kolfage’s purported monthly salary was funneled through alleged We Build the Wall vendors, including a shell company set up by Shea. Similar to previous transactions, money would be sent from We Build the Wall to this shell company, which would then redirect a significant portion back to Kolfage, claiming it was compensation for managing “social media” accounts. Over a span of ten months, Kolfage is said to have received more than $350,000 through these intermediary entities.
Bannon, Badolato, and Shea were also implicated, each reportedly receiving substantial donor funds aimed at constructing the wall, which they allegedly misused for personal travel and to settle credit card debts. Court records indicate that Bannon received more than a million dollars from We Build the Wall, some of which was directed to Kolfage, and a “substantial portion” was kept for himself.
Upon learning from a bank last October about a potential investigation, Kolfage and Badolato reportedly transitioned to using an encrypted messaging service. The statements on the We Build the Wall website regarding Kolfage’s salary were modified, replacing previous claims of him not drawing a salary with a notice that he would start receiving one in January 2020.
“As detailed in the allegations, they not only deceived their donors but also crafted a scheme to obscure their diversion of funds by generating fake invoices and accounts to launder donations, demonstrating a blatant disregard for both the law and the facts,” stated Philip R. Bartlett, inspector-in-charge of the New York Field Office of the United States Postal Inspection Service, which took part in the investigation. “This situation should serve as a clear caution to those engaging in fraud that no one is exempt from accountability, not even a disabled war veteran or a millionaire political strategist.”