The Wall Street Journal reports a federal investigation has been launched into whether the then US president-elect misspent some of the money earmarked for his inauguration. The newspaper, citing people close to the matter, claimed an investigation had been launched after an April raid on Mr Trump’s former lawyer, Michael Cohen, saw prosecutors seize various materials from his office. The criminal investigation is looking into whether committee members bought a place in the Trump administration.
According to sources, the investigation is also looking at if money was traded for “policy concessions or to influence official administration positions”
Federal investigators are looking at whether people from foreign countries funnelled potentially illegal donations to the inauguration fund to buy “influence over American policy”.
The Wall Street Journal said the president is being investigated for: “Giving money in exchange for political favours could run afoul of federal corruption laws.
“Diverting funds from the organization, which was registered as a non-profit, could also violate federal law.”
Mr Cohen was sentenced to three years in prison following the raids on his home and business premises.
Prosecutors are also questioning Richard Gates, who was the partner of Trump’s campaign manager, Paul Manafort, at the time of Trump’s election.
Mr Gates was the deputy chairman of Trump’s inaugural committee, and has previously cooperated with investigators as part of Robert Mueller’s investigation into Russian meddling during the 2016 election.
In a statement released on Friday, Trump’s inaugural committee said the celebration was “in full compliance with all applicable laws.”
It read: “The (committee) is not aware of any pending investigations and has not been contacted by any prosecutors. We simply have no evidence the investigation exists,” the statement read.
“The (committee’s) finances were fully audited internally and independently and are fully accounted. Moreover, the inauguration’s accounting was provided both to the Federal Election Commission and the IRS in compliance with all laws and regulations.
“These were funds raised from private individuals and were then spent in accordance with the law and the expectations of the donors.
“The names of donors were provided to the FEC and have been public for nearly two years and those donors were vetted in accordance with the law and no improprieties have been found regarding the vetting of those donors.”
The White House is yet to comment on the Wall Street Journal’s report, while a spokesman for the US Attorney’s Of