Trump Inaugural Committee under criminal investigation

PhDeac said:

I’m just a sad former poor so one of you successful people can explain this to me. What kind of legal business requires you give a $900K “donation” in order to be successful?

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JManslow said:

Whatever happens, we absolutely can’t raise taxes on people like this. The money is VITAL to the economy.

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PhDeac said:

I’m just a sad former poor so one of you successful people can explain this to me. What kind of legal business requires you give a $900K “donation” in order to be successful?

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WakeForestRanger said:

Well that's a relief.

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But Cohen let Wolkoff know that, among other documents and recordings, the F.B.I. had seized hours of their own conversations that he had taped. According to people familiar with the recordings, some of the taped conversations dealt directly with the inauguration. In them, Wolkoff detailed her own contemporaneous concerns with the inauguration—about how money was being spent, the general chaos of the process, and the involvement of Trump’s adult children. During these conversations, Wolkoff also raised her issues with the two men in charge of the committee: Gates and Barrack.

These recordings, in part, led the Southern District of New York to launch a criminal investigation into how the inaugural committee spent its record $107 million. Now, the investigation appears to be advancing. In December, The Wall Street Journal and The New York Times reported that prosecutors are examining the committee’s spending, and investigating whether foreign donors from nations including Saudi Arabia, Qatar, and the United Arab Emirates funneled money to the committee in an effort to influence U.S. policy. On Monday, the inaugural committee received a subpoena from the S.D.N.Y. requesting documents related to spending and donors, vendors, and benefits handed out, as well as documents related to a wealthy donor who had once registered as a foreign agent working on behalf of the Sri Lankan government. The Journal reported that prosecutors have asked Gates about the inaugural fund’s spending and its donors.

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Trump was focused on the big-picture theatrics. He wanted to arrive on the Mall in a military plane with a military escort, much as he had arrived for tapings of The Apprentice on Trump Organization helicopters. He also wanted to have a full military parade, as well as tanks and helicopters on the ground.

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For an event producer used to detailed lists and punctilious itemization, Wolkoff was often caught off guard by the ad-hoc nature of the committee. According to the two people familiar with the matter, Gates approached a couple individuals working on the inauguration and asked if they would be willing to be paid directly for their work by a donor, rather than by the inaugural committee. They had received more donations than they’d initially anticipated, Gates told these people. Skirting the usual payment route could allow the inaugural committee to avoid reporting the full amount raised from donors. (A lawyer for Gates did not respond to a request for comment.)

Wolkoff frequently told Melania about her concerns regarding Gates, these people said. She relayed her concern about the high access level of his security pass within Trump Tower and his closeness with the Trump family. In her view, these people said, he exacerbated a situation already fraught with potential conflicts of interest. Members of the inaugural committee talked about how he frequently worked out of Donald Trump Jr.’s office. He was in constant communication with the adult children in order to keep them in the loop about decisions surrounding the inauguration.

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Wolkoff also questioned Gates and Barrack about pricing and budgets across the board, according to the people familiar with the conversations. She started to grow concerned about being left out of meetings, particularly as she raised more red flags. Because part of her responsibilities included reviewing all budgets from her vendors and presenting them to other members of the inaugural committee, she studied the line items in order to be able to explain them. At points, she could not justify the numbers coming in. After circulation of a quote from one of their largest event-production vendors, Hargrove LLC, Wolkoff was shocked that no one in the organization appeared willing to question the figures. She suggested that the quote seemed far beyond what the Obama inaugural committee would have been charged in 2009. She sent an e-mail to her team and Barrack on December 31, 2016. “I am DISGUSTED by [Hargrove’s] lack of transparency and entitlement to [the Presidential Inaugural Committee’s] funding,” she wrote. “I can not approve any budget line items because I do not have a clue what these numbers represent!!” (Hargrove did not immediately respond to a request for comment.)

One of the most concerning aspects to Wolkoff’s team, according to the people familiar with the situation, was the amount of money and attention being spent on Barrack’s chairman dinner, which he hosted on an evening before the swearing-in. A draft guest list for the event from days before the dinner included the likes of retired Lieutenant General Mike Flynn, G.O.P. fund-raiser Elliott Broidy, Michael Cohen, and key officials in the incoming administration. Among the list marked as confirmed were seven people described as “foreign ministers” for Saudi Arabia, one foreign minister from Qatar, and one from the United Arab Emirates. They were the only people on the list who were unnamed. (On Tuesday, ProPublica published a memo that showed Barrack’s investment firm planned to profit from its connections to the Trump administration. A spokesperson called it “an outline of a proposed potential business plan which was never acted upon or implemented.”)

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