A bombshell lawsuit is seeking to rip the cover off an Obama administration policy that funneled money to left-wing groups.
“Judicial Watch announced today that it has filed a Freedom of Information Act (FOIA) lawsuit against the U.S. Department of Justice for records relating to an Obama administration policy of settling agency lawsuits against corporate defendants by requiring that the corporations make ‘donations’ to left-wing interest groups La Raza, the Urban League and the National Community Reinvestment Coalition,” the group said in a statement.
What was happening?
When the DOJ accepted settlements in cases with corporations, the Obama administration was making the corporations make donations to left-wing groups as a part of the case. So not to the government and not to the victims, but to third party leftist groups who had nothing to do with the case.
Not only is that just on the face of it, ridiculously improper, but as Judicial Watch notes, it is subverting the Congressional budget authority. If there is any money that passes through the government, only Congress has the right to determine where it goes.
Attorney General Jeff Sessions ended the practice last week after the Trump administration discovered what had been going on.
According to Investors Business Daily, in just one $17 billion settlement with Bank of America, the Obama administration funneled money to:
La Raza: A far-left Latino organization which is known for pressuring banks to give loans to low-income Hispanics.
National Community Reinvestment Coalition: One of the top lobbying groups supporting the Community Reinvestment Act, a 1977 piece of legislation that’s a favorite of the left.
Operation Hope: A group from South Central in Los Angeles, it pressures banks to give “dignity loans” to individuals who would otherwise not qualify.
Neighborhood Assistance Corporation of America: A group whose leader called himself a “bank terrorist,” something that’s apparently a lot more acceptable since the days of Patty Hearst.
“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 to bankroll third-party special interest groups or the political friends of whoever is in power,” the attorney general said upon ending the program.
“Unfortunately, in recent years the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement. With this directive, we are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm, and punish and deter unlawful conduct.”