Major Abuse of Power

Inaugural Committee: $107 Million Raised, Federal Investigations Into Corruption

The Southern District of New York opened an investigation into the inaugural committee in 2019 after the Cohen cooperation. Prosecutors subpoenaed records investigating potential coordination with foreign nationals and possible misuse of nonprofit funds. Tom Barrack, who chaired the fundraising effort, was indicted in July 2021 on charges of acting as an unregistered foreign agent of the UAE, obstruction of justice, and making false statements. The indictment alleged Barrack had used his position in the Trump campaign and inaugural committee to influence U.S. policy and public statements in favor of the UAE. Barrack was ultimately acquitted at trial. The investigation also found that donors linked to the UAE, Saudi Arabia, and Qatar may have funneled money through straw donors.

Overview

Trump's 2017 inaugural committee raised $107 million — more than double any previous inauguration in U.S. history. A significant portion came from corporations and lobbyists seeking access to the new administration. Some came from individuals with undisclosed foreign government connections.

The committee's fundraising chair was later indicted for acting as a UAE foreign agent through his committee activities. He was acquitted.

The Money

Presidential inaugurations are not federally funded. Committees raise private money to cover the costs of the ceremony and events, and any surplus may be donated to charity or used for the transition. $107 million is a remarkable sum for an event that had previously cost $53 million at its most expensive.

The surplus — after events — was substantial. Investigators questioned whether it was appropriately used.

The Access Model

Gordon Sondland donated $1 million to the inaugural committee. He was subsequently appointed Ambassador to the European Union with no diplomatic experience. He later testified in the impeachment proceedings about a quid pro quo with Ukraine and said "everyone was in the loop."

The Sondland appointment documented how inaugural donations translated into access and positions. He was not alone — multiple major donors received ambassadorial appointments.

The Foreign Money

Federal law prohibits foreign nationals from contributing to U.S. political activities. Investigators found evidence that individuals with ties to the UAE, Saudi Arabia, and Qatar had channeled money through U.S.-citizen intermediaries. The SDNY investigation was partly focused on this.

The Barrack indictment alleged that the coordination with UAE went further: that he had shaped Trump's public statements and policy positions in exchange for UAE interests. The jury found the prosecution had not proven this beyond a reasonable doubt.

Timeline

Sequence of events

  1. Inaugural committee raises $107 million

    Trump's inaugural committee raises $107 million, more than double any previous inauguration. Major donors include corporations, lobbyists, and individuals with foreign government ties.

  2. SDNY opens criminal investigation into committee

    The Southern District of New York opens a broad criminal investigation into the inaugural committee following information from Michael Cohen's cooperation. Prosecutors subpoena committee records.

  3. Tom Barrack indicted on UAE foreign lobbying charges

    The inaugural committee's fundraising chair is indicted on seven counts including acting as an unregistered UAE foreign agent, obstruction, and false statements. He is alleged to have used his Trump access to advance UAE interests.

  4. Barrack acquitted at trial

    A jury acquits Tom Barrack on all counts. The prosecution's case is found insufficient to prove the foreign agent charges beyond reasonable doubt. The broader SDNY investigation concludes.

Sources

  1. Federal Prosecutors Open Criminal Investigation Into Trump's Inaugural Committee — The New York Times
  2. Tom Barrack, Trump ally and inaugural committee chair, indicted on foreign lobbying charges — The Washington Post
  3. Trump ally Tom Barrack indicted on foreign lobbying charges — The Associated Press

Verification

Publication provenance

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