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Trump’s DOJ ends Obama policy of using court settlements to help fund liberal organizations

Trump’s DOJ ends Obama policy of using court settlements to help fund liberal organizations

There were many things that former President Barack Obama did while in office that might be considered improper or even borderline illegal.  For example, Obama secretly took money from Fannie Mae to use to subsidize his Obamacare premium scheme which was not authorized by Congress, who by law holds the power to all monetary appropriations.

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And on June 7, President Trump’s Attorney General announced the DOJ was ending another payola scheme from the Obama administration that was used to funnel court settlement monies to third party liberal organizations who had no stake at all in lawsuits determined in Federal civil courts.

The US Justice Department will no longer pay settlements to third parties that were “neither the victims nor the parties of the lawsuit.” The funds were meant for community organizations but conservatives said only liberal organizations benefitted.

On Wednesday, Attorney General Jeff Sessions announced that the Justice Department would no longer allow federal prosecutors to make settlement deals with large companies to direct donations to third-party organizations “not directly harmed by the conduct.”

“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, adding, “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.”

Beginning under former Attorney General Eric Holder, appointed by former President Barack Obama, the DOJ negotiated settlements that required the settling parties to pay funds to third-party community organizations, such as advocacy or housing groups.

In January, House Judiciary Committee Chairman Bob Goodlatte (R-Virginia) introduced the Stop Settlement Slush Funds Act of 2017, which would prohibit the practice.

On Wednesday, Goodlatte applauded Sessions for his “commitment to restoring accountability to the Department of Justice.”

“The practice is wrong no matter which party is in power,” Goodlatte said in a statement“Attorney General Session’s integrity stands in stark contrast to the behavior of Obama Administration officials who used their position to funnel billions of settlement dollars to their political allies.” – Russia Today

When history looks back at the presidency of Obama, they will probably find dozens, if not hundreds of different schemes performed to funnel money to political cronies, as well as to organizations loyal to the administration’s cause.  And whether it was billions given in grants to solar energy companies whose CEO’s were strong fundraisers for his elections, or the fraudulent trillion dollar ‘stimulus package’ where very few jobs were created but billions went to unions and Democratic favored slush funds, A.G. Sessions start in unraveling eight years of cronyism is a good beginning to erasing Obama’s legacy of fraud and corruption.

Kenneth Schortgen Jr is a writer for The Daily Economist,, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.



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