In March, it was revealed that the Obama Administration was funneling billions of dollars to left-wing activist groups via a “slush fund” scheme at the Department of Justice. Essentially, the federal government would make secretive settlement agreements with large companies, directing them to bankroll nonprofit left-wing activist groups like National Council of La Raza, National Urban League, and National Community Reinvestment Coalition, instead of funneling the cash to the victims in question or the Treasury Department.
“Advocates for big government and progressive power are using the Justice Department to extort money from corporations,” Tom Fitton of Judicial Watch said of the scam. “It’s a shakedown. It’s corrupt, pure and simple.”
On Wednesday, Attorney General Jeff Sessions put an end to the corrupt practice once shrouded in secrecy.
“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,” said Sessions 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,” the attorney general added. “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.”
As noted by Fox News, “The new policy allows only for restitution to victims or payment that ‘directly remedies the harm that is sought to be addressed.'”
Lisa A. Rickard, U.S. Chamber of Commerce Institute for Legal Reform president, applauded the move by Sessions: DOJ officials must “seek justice” in a way that is “consistent with public interest,” she said. “Not how much money they can generate for outside interest groups unconnected with the underlying enforcement action.”
“Since 2010, I’ve been working to shine a light on these misdeeds and to get answers from the Department,” said Chairman of House Judiciary Committee Chuck Grassley, a Republican. “Today’s announcement is welcomed news for those of us who respect the rule of law and demand a more accountable government.”
