Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Former Trump administration chief strategist Steve Bannon pleaded not guilty on Thursday after being indicted and taken into custody in New York on federal fraud charges.
The latest: A federal judge agreed to release Bannon on a $5 million bond. His travel will be restricted to the New York and Washington, D.C. areas, and he will not be allowed to use private jets or boats without permission.
The state of play: Bannon, along with three others, allegedly defrauded donors out of hundreds of thousands of dollars for their own profit with a crowdfunding campaign called "We Build the Wall" that raked in over $25 million.
- The indictment says that Bannon, via a non-profit, took in over $1 million from the scheme "and at least some of it was used to cover hundreds of thousands of dollars in [his] personal expenses."
- Bannon's co-conspirators are Brian Kolfage, who served as the organization's founder and president, Andrew Badolato and Timothy Shea.
- Kolfage deleted the organization's GoFundMe page on Wednesday, alleging that the platform was engaged in "censorship" after it shut down another of his campaigns centered on suing Black Lives Matter.
Why it matters: Bannon's indictment makes him the sixth person linked to the senior leadership of the 2016 Trump campaign to be hit with federal charges.
- The others are Roger Stone, Michael Flynn, Rick Gates, Paul Manafort and Michael Cohen — all of whom faced indictments under the Mueller investigation.
- A lower-level campaign adviser, George Papadopoulos, was also charged.
The big picture: According to its website, We Build the Wall's says it "will focus on building portions of a U.S. Southern Border wall and manage the support operations required for, and the processes associated with, the design, engineering, construction, and maintenance of the wall."
- The indictment says that the organization did indeed spend money on a border wall but alleges that "hundreds of thousands of dollars were siphoned ... for the personal use and benefit" of the defendants.
- They allegedly used the money "for a variety of personal expenses, including, among other things, travel, hotel, consumer goods and personal credit card debts." Kolfage specifically allegedly used his share for "home renovations, payments toward a boat, a luxury SUV, a golf cart, jewelry, cosmetic surgery, personal tax payments and credit card debt."
What they're saying: "As alleged, the defendants defrauded hundreds of thousands of donors, capitalizing on their interest in funding a border wall to raise millions of dollars, under the false pretense that all of that money would be spent on construction," acting U.S. Attorney Audrey Strauss said in a statement.
- "This case should serve as a warning to other fraudsters that no one is above the law, not even a disabled war veteran or a millionaire political strategist," added Inspector-in-Charge Philip R. Bartlett.
Behind the scenes: Bannon was taken into custody aboard the Lady May, a 152-foot yacht (listing price: $27.9 million) off the Connecticut coast.
- The vessel is reportedly owned by controversial Chinese billionaire Guo Wengui, per the Washington Free Beacon. Guo is a critic of the Chinese Communist Party and has been bankrolling Bannon's recent work.
- "Bannon was arrested by inspectors from the U.S. Postal Service," per the Hartford Courant.
- All three of Bannon’s cellphones are now disabled, according to Axios’ Jonathan Swan.
Trump distanced himself from his former aide while speaking to reporters at the White House, but said he feels "very badly" for Bannon.
- "[H]e was involved ... in our campaign, and for a small part of the administration, very early on. I haven’t been dealing with him at all."
- "I don’t know that he was in charge. I didn’t know any of the other people either."