WASHINGTON -- Federal prosecutors are examining whether foreigners illegally funneled donations to President Donald Trump's inaugural committee and a pro-Trump super PAC in hopes of buying influence over U.S. policy, according to people familiar with the inquiry.
The inquiry focuses on whether people from Middle Eastern nations -- including Qatar, Saudi Arabia and the United Arab Emirates -- used straw donors to disguise their donations to the two funds. Federal law prohibits foreign contributions to federal campaigns, political action committees and inaugural funds.
The line of questioning underscores the growing scope of criminal inquiries that pose a threat to Trump's presidency. The special counsel, Robert Mueller, is focusing on whether anyone in the Trump campaign conspired with Russia to tip the 2016 presidential election in Trump's favor, while prosecutors in New York are pursuing evidence he secretly authorized illegal payments to silence accusations of extramarital affairs that threatened his campaign.
The inquiry into potential foreign donations to the inaugural fund and the super PAC is yet another front being pursued by multiple teams of prosecutors. Thomas Barrack, a billionaire financier and one of Trump's closest friends, raised money for both funds.
"Tom has never talked with any foreign individual or entity for the purposes of raising money for or obtaining donations related to either the campaign, the inauguration or any such political activity," said Owen Blicksilver, a spokesman for Barrack. The inaugural committee focus was reported Thursday by The Wall Street Journal.
The inaugural committee said it has not been contacted by federal prosecutors and is not aware of any investigations.
The committee "staged a celebration of our democratic processes and did so in full compliance with all applicable laws and disclosure obligations," it said in a statement Friday.
It added that the names of donors were given to the election commission and have been public for nearly two years. It said the donors were vetted and no improprieties were found. White House spokesman Hogan Gidley was asked by reporters Friday if there were any "improprieties" with the inauguration funding.
"The president of the United States has one job at the inauguration. It's to show up, to thank everyone for the service to get him elected, and then also dance with the first lady," Gidley said in response. "He did all of those things. This charge has nothing to do with the president of the United States, and it has nothing to do with this administration."
The super PAC, Rebuilding America Now, was formed in the summer of 2016 when Trump's presidential campaign was short of cash and out of favor with many major Republican donors.
According to several of the people familiar with the investigation, Paul Manafort, who then headed the campaign, suggested that Barrack step into the void by creating and raising funds for the political action committee, which could collect unlimited amounts as long as it avoided coordinating closely with the candidate.
In an interview with investigators a year ago, Barrack said that Manafort seemed to view the political committee as an arm of the campaign, despite laws meant to prevent such coordination, according to a person familiar with the interview.
According to filings with the Federal Election Commission, the committee raised $23 million, making it one of the most important sources of funds for political expenditures on Trump's behalf.
Prosecutors from New York and from Mueller's team have asked witnesses whether anyone from Qatar or other Middle Eastern countries contributed money, perhaps using U.S. intermediaries.
Investigators also sought information from a businessman, Rashid Al Malik, an associate of Barrack's who heads a private investment firm in the United Arab Emirates, according to a person familiar with the inquiry. Malik's lawyer did not immediately respond to a request for comment.
The inquiry into the inaugural fund appears to involve prosecutors from U.S. attorney's offices in Manhattan and Brooklyn, people familiar with the investigation said. The fund has long been a source of infighting among White House advisers and personal friends of Trump's, who have blamed one another for news reports about questionable expenditures.
Information for this article was contributed by Sharon LaFraniere, Maggie Haberman and Adam Goldman of The New York Times; and by staff members of The Associated Press.
A Section on 12/15/2018