Stopping The Illegal Redistribution Of Wealth

In August 2014, I posted an article about the Obama Justice Department essentially shaking down businesses to gain funds to send to leftist groups.

The article reported:

Bank of America (NYSE:BAC) last week agreed to pay $16.65 billion to settle claims that SNL noted “primarily” emanated from the activities of Countrywide Financial and Merrill Lynch, which prosecutors said knowingly sold toxic mortgages in the years leading up to the financial crisis and recession of 2007-09, before BofA acquired Countrywide in July ’08 and Merrill in January ’09.

…The groups benefitting from the lawsuit, according to Investor’s Business Daily, are the National Council of La Raza, Operation Hope, National Community Reinvestment Coalition, and Neighborhood Assistance Corporation of America. The money also went to “delinquent borrowers” in Chicago, Oakland, Detroit, Philadelphia and other major “Democrat strongholds.”

“This is a wealth redistribution scheme disguised as a lawsuit,” Tom Fitton, president of Judicial Watch, told The Daily Caller. “And who benefits from the distribution? Interest groups the administration relies on, outside interest groups, allies and politicians in communities trying to benefit as well.”

…La Raza, Operation Hope, National Community Reinvestment Coalition, and Neighborhood Assistance Corporation of America have all intimidated banks to give loans to minorities, even if they can’t afford to pay them back.

The practice of shaking down businesses to redistribute wealth will now come to a screeching halt.

Townhall.com is reporting today:

Attorney General Jeff Sessions announced early Wednesday morning the Department of Justice will no longer force defendants to send payments to third party special interests unrelated or unharmed in federal cases. 

“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,” Sessions said in a statement.  “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.”

This is a much-needed change. The funding of leftist groups by shaking down corporations was common practice under the Obama Administration. That sort of behavior is what led to the election of President Trump. This is definitely a step in the right direction in terms of draining the swamp.