Statement by Commissioner Nikki Fried on Federal Indictment Related to “We Build The Wall” Charity

Tallahassee, Fla. — Today, the U.S. Attorney’s Office for the Northern District of Florida announced the indictment by a federal grand jury of Brian G. Kolfage of Miramar Beach, Florida, for crimes related to the filing of income taxes. This indictment is separate from the federal indictment announced in August 2020 by the Southern District of New York for fraud and money laundering related offenses. The indictments are related to an investigation into the Florida-registered charity “We Build The Wall” initiated in May 2019 by the Florida Department of Agriculture and Consumer Services, the state agency regulating charities in Florida.

“Anyone accused of using Florida charities to fraudulently enrich themselves should be held accountable under the law,” said Florida Agriculture Commissioner Nikki Fried. “As Florida’s state consumer protection agency and regulator of charities, we take seriously the responsibility to ensure that donations meet their intended purpose of helping others. I appreciate the investigative efforts of the U.S. Department of Justice and federal and state partners including our Office of Agricultural Law Enforcement to protect Florida’s consumers from alleged fraud.”

Background: On May 17, 2019, the Florida Department of Agriculture and Consumer Services opened an investigation into the charity known as “We Build The Wall.” Upon further investigation, the Department’s Office of Agricultural Law Enforcement subsequently referred the investigation to the Federal Bureau of Investigation. On August 20, 2020, the U.S. Southern District of New York unsealed an indictment charging Brian Kolfage, Stephen Bannon, Andrew Badolato, and Timothy Shea regarding the “We Build The Wall” charity. Following precedent, and pursuant to s. 496.4191, Florida Statutes, the Department immediately suspended the charity registration for “We Build The Wall.”

At this time, the state investigation remains active. The Department cannot comment on ongoing investigations, pursuant to s. 119.071(2)(c)1, Florida Statutes, and s. 570.077, Florida Statutes, and pertinent federal regulations.

The full press release from the U.S. Attorney’s Office for the Northern District of Florida follows:

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FOR IMMEDIATE RELEASE
Thursday, May 6, 2021

For more information, contact:
U.S. Attorney’s Office
Northern District of Florida
(850) 216-3845
USAFLN.Press.Office@usdoj.gov
Follow us on Twitter | @NDFLnews

LOCAL PRESIDENT OF “WE BUILD THE WALL” FACES NEW FEDERAL INDICTMENT

PENSACOLA, FLORIDA – Brian G. Kolfage, of Miramar Beach, Florida, has been indicted by a federal grand jury for crimes related to the filing of his 2019 income taxes, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida today. Kolfage, who faces a separate federal indictment out of the Southern District of New York for fraud and money laundering related offenses, now also faces one count of filing a false tax return and one count of wire fraud related to the electronic filing of his tax return in Northern Florida.

The indictment alleges that between January 2019 and July 2020, Kolfage engaged in a scheme to defraud the government in relation to his 2019 federal income tax returns. The charges allege that Kolfage received hundreds of thousands of dollars from multiple organizations during 2019, including We Build the Wall, Inc., which were deposited into his personal bank account. Kolfage is alleged to have failed to report this income to the Internal Revenue Service.

“The United States relies on the payment of taxes to defend our country and maintain its operations,” stated Acting United States Attorney Coody. “We will investigate and prosecute those who falsely misrepresent their income – whether by traditional evasion or failing to disclose charitable contributions diverted to their personal gain.”

“IRS-CI is working diligently to stop those who, regardless of their resume or social status, violate the integrity of our nation’s tax system,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “We take our mission seriously. IRS Special Agents are particularly interested in cases where someone for his own personal benefit has taken what belonged to others. We encourage everyone to practice due diligence when donating their hard-earned money.”

Kolfage will make his initial appearance on this indictment on May 27, 2021, at 2:00 pm Central Time, at the United States Courthouse in Pensacola, Florida. If convicted, he faces up to 20 years’ imprisonment.

The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Office of Agricultural Law Enforcement of the Florida Department of Agriculture and Consumer Services. The case is being prosecuted by Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

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