- Two co-defendants in the "Build the Wall"
fraud case have taken plea deals. - Brian Kolfage and Timothy Shea are accused of steering non-profit money toward
Steve Bannon .
Two co-defendants in the "Build the Wall" fraud case involving ex-Trump strategist Steve Bannon have agreed to plea deals ahead of their scheduled trial, according to court documents.
Brian Kolfage and Timothy Shea have "reached agreements in principle with the Government to enter pleas of guilty to certain charges in this case," the court documents filed on Friday state.
Kolfage, Shea, and Andrew Badolato face federal money laundering conspiracy and wire fraud conspiracy charges for their alleged involvement in a scheme to steer money away from a nonprofit to fund Trump's
During the federal government shutdown in December 2018, Kolfage, an Air Force veteran, launched the "We Build the Wall" fundraising effort, which he said aimed to raise $1 billion to help fund President
Bannon advised Kolfage on the project, and within a week, the group had raised $17 million. In total, the group raised over $25 million, according to the indictment.
The men repeatedly promised donors that "100%" of the donations would be spent on the wall.
Despite these promises, the four men siphoned hundreds of thousands of dollars from the nonprofit to use on their personal expenses.
While the group did help fund small sections of the border wall, some of which are facing scrutiny for not complying with federal regulations and potentially being structurally unsound, they also spent more than $350,000 on things like travel, credit card debt, and hotels, according to the indictment.
To hide their misuse of the funds, they used a shell account and the accounts of associates, according to the indictment.
When they later learned that there was an investigation into their alleged fraud, the men took additional steps to conceal their crimes, according to the indictment. They began using encrypted messaging, and removed all language from their website that said they wouldn't be taking a salary.
A trial for Badolato, is still scheduled for May 16.
Trump pardoned Bannon — his longtime advisor — on these charges in the final hours of his presidency in 2020.
Bannon, however, still faces unrelated charges that he defied Congress by refusing to comply with a subpoena from the House committee investigating the January 6, 2021, attack on the Capitol.