Facts of this Situation
What is a “Slush Fund?”
According to the Dictionary, a slush fund is “a reserve of money used for illicit purposes, especially political bribery.”
The Obama Administration Created an illegal fund
Multiple reports show that the Obama administration created a slush fund and directed billions of dollars to leftist activist groups through a Department of Justice scheme.
As head of the DOJ, former Attorney General Eric Holder was at the forefront of the illegal scheme.
Evidence shows that the illegal practice was used by the Obama administration to siphon billions of dollars from companies and funnel the money to leftist activist groups.
The Fund took Money from wrongdoing Companies and gave it to Leftist groups
Fox News explains it this way: “When big banks are sued by the government for discrimination or mortgage abuse, they can settle the cases by donating to third-party non-victims.”
Some say that these banks are urged, or even incentivized, to give the money away to these non-profits. The only other option is to give the money to consumers, a route few, if any, banks take.
For example, Bank of America was forced to pay $17 billion to non-profit third parties to quell an investigation into their selling of mortgage-backed securities in the days leading up to the 2008 Recession.
Volkswagen provides a prominent non-bank example, as the company invested $1.2 billion into companies researching zero emission technologies. It should be noted that the Republican-majority Congress denied this action twice, and Volkswagen ended up paying 4x what the Obama administration originally requested.
Investigators have already accounted for $3 billion in this illegal fund
Thus far, into the probe of the slush fund, investigators have accounted for $3 billion paid to “non-victim entities.”
These “non-victim entities” are third parties not involved in the respective case, and they are believed to have been leftist activist groups with ties to members in the Obama administration.
No receiving companies have been identified yet.
However, there are two problems with this amount of money: the cash is unrecoverable and there is no way to know how any companies spent it.
At least some of the money came straight from taxpayers, said Ted Frank, director of The Competitive Enterprise Institute Center for Class Action Fairness, in a statement to Fox News. Mr. Frank also calls these actions an “abuse of power.”
The Attorney General ended the practice on 6/7/2017
On June 7, 2017, Jeff Sessions sent out a memo to all United States attorney’s offices stating that he would “end the process that allowed companies to meet settlement burdens by giving money to groups that were neither victims nor parties to the case.”
The official statement from Mr. Sessions: “When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people – not the bankroll third-party special interest groups or the political friends of the whoever is in power.”
Conservatives in Congress have been pushing for this move for months now, and are delighted that the funnel has been sealed off.