Steve Bannon, a close ally of President Donald Trump, pleaded guilty on Tuesday (February 11) to defrauding donors who contributed to "We Build the Wall," an online fundraiser for Trump's border wall project. The plea agreement allows Bannon to avoid prison time, receiving a conditional discharge instead. Prosecutor Jeffrey Levinson confirmed, "The parties have worked out a plea agreement. Mr. Bannon will plead guilty to count 5 of the indictment, which is scheme to defraud in the indictment."

Bannon's guilty plea marks his second criminal conviction, following a previous prison sentence for contempt of Congress. In court, Bannon acknowledged his actions to defraud multiple donors, admitting to the scheme where funds were redirected away from their intended purpose. The court imposed a three-year conditional discharge, prohibiting Bannon from serving as a director of a charity or fundraising for a nonprofit during this period. Additionally, he is barred from using data collected from We Build the Wall donors.

The "We Build the Wall" campaign promised that all donations would go towards constructing a wall along the U.S. southern border. However, Bannon redirected funds, including funneling money to Brian Kolfage, the president of the nonprofit, despite public assurances that Kolfage would not receive compensation. Financial records revealed Kolfage received an upfront payment of $100,000 and monthly payments of approximately $20,000, laundered through third-party entities.

Bannon was initially charged in federal court alongside three codefendants in September 2022. President Trump pardoned Bannon, but not the codefendants, whose prosecutions led to asset forfeitures that reimbursed defrauded donors. Bannon had previously pleaded not guilty and was set to stand trial next month.

This Morning With Gordon Deal