A lawsuit has been filed naming Obama’s administration as part of a scheme to award $17 billion to seedy specials interests.
Judicial Watch has filed a lawsuit against the Justice Department claiming the Obama administration funneled $17 billion into various organizations through a “policy of settling agency lawsuits against corporate defendants by requiring that the corporations make ‘donations’ to left-wing interest groups.” (via Judicial Watch)
Judicial Watch is a conservative watchdog organization that uses Freedom of Information Act lawsuits to gather information on the allegations of misconduct of government officials. Since its founding in 1994, it has filed a number of lawsuits against the Clinton, Bush, and Obama administrations. It is also reported to have more than 20 ongoing lawsuits regarding Hillary Clinton’s email scandal.
The organization became interested in the Obama Administration “laundering” money after the House Judiciary and Financial Services committees initiated their own investigation into the matter, finding that the administration “engaged in a pattern or practice of systematically subverting Congress’ budget authority by using settlements from financial institutions to funnel money to left-wing activist groups.”
The scheme was that the Department of Justice would identify financial institutions, such as banks with lawsuits filed against them, or would file new lawsuits against them. The DOJ would then approach these institutions and offer to lift the lawsuits if the organization made a ‘donation’ to a left-wing organization. Not wanting to be involved in a lawsuit with the Department of Justice, these institutions readily poured money into the left-wing groups. This scheme allowed the Obama administration to bypass Congress and fuel its supporters’ causes with over $17 billion.
In an effort to stop the scheme, a bill was passed in the house called the Stop Settlement Slush Funds Act. Included within the bill is a bar on the Department of Justice from being able to direct funds to groups not involved within the settlements by requiring that the money goes first to all affected parties and then is sent elsewhere — as decided by elected representatives of Congress working with the Treasury Department.
Judicial Watch’s involvement in the investigation was to acquire “any and all non-exempt records” in an effort to preserve evidence in the ongoing investigation. This lawsuit was done as the Justice Department ignored a previous request by Judicial Watch to see the documents as part of the Freedom of Information Act.
President of Judicial Watch Tom Fitton told Fox News that he was disgusted by the whole matter, “Advocates for big government and progressive power are using the Justice Department to extort money from corporations. It’s a shakedown. It’s corrupt, pure and simple …”
It’s disturbing to think that the Obama administration had been keeping its supposedly ‘noble’ liberal agendas alive through what some would call money laundering and extortion. Many of the left-wing, non-profit organizations, that benefited from this scheme received money that should have gone into taxpayers’ hands. What’s interesting with this case is that liberals are frequently making accusations that conservatives and others on the political right are stealing from the poor to benefit the rich.
Ironically, however, here we have a shocking example of the former Obama Administration stealing from taxpayers to benefit pet projects and the agenda of the Democratic Party.