Speed Reads

dark money

Federal prosecutors have reportedly launched a criminal investigation of Trump's inaugural committee

Federal prosecutors in New York City have begun a criminal investigation into whether President Trump's 2017 inaugural committee misspent any of its record $107 million haul and whether any of the committee's biggest donors sought access to or special favors from the incoming Trump administration for their donations, The Wall Street Journal reported Thursday evening, citing people familiar with the matter.

The investigation arose partly out of materials seized by the FBI in an April raid of former Trump fixer Michael Cohen's office and residences, the Journal says, and federal prosecutors have sought information from Rick Gates, deputy chairman for both Trump's campaign and inaugural committee, who has pleaded guilty to different crimes and is cooperating with investigators. "Giving money in exchange for political favors could run afoul of federal corruption laws," the Journal notes. "Diverting funds from the organization, which was registered as a nonprofit, could also violate federal law."

Trump's $107 million inaugural fund was more than twice the previous record, set in 2009. The inaugural committee has not publicly accounted for how it spent $103 million, though it has identified vendors it paid $61 million and broken out some of the broad spending categories. Thomas Barrack, the real estate developer and longtime Trump friend who chaired the inaugural committee, said the committee's finances were audited by an outside organization, though he has not made that audit public. "There is no sign the investigation is targeting Mr. Barrack," the Journal says. Reporter Rebecca Davis O'Brien, who helped break the story, walked through some of the other details with CNN's Jake Tapper, and you can watch that below and read more at The Wall Street Journal. Peter Weber