As released by the conservative watchdog group Judicial Watch, they have filed a lawsuit, whose subject is channeled donations by the Obama administration to far-left oriented groups as part of settlements reached by the DOJ.
“Judicial Watch announced today that it has filed a Freedom of Information Act (FOIA) lawsuit against the U.S. Department of Justice for records relating to an Obama administration policy of settling agency lawsuits against corporate defendants by requiring that the corporations make ‘donations’ to left-wing interest groups La Raza, the Urban League and the National Community Reinvestment Coalition,” stated Judicial Watch.
“Judicial Watch submitted its FOIA request in the aftermath of an extensive investigation by the House Judiciary and Financial Services Committee that found the Obama Department of Justice had ‘engaged in a pattern or practice of systematically subverting Congress’ budget authority by using settlements from financial institutions to funnel money to left-wing activist groups.’”
Judging by a DOJ news release, the Obama-era policy “repeatedly required settling parties to pay settlement funds to third-party community organizations that were not directly involved in the litigation or harmed by the defendant’s conduct.”
While this policy has been terminated by Attorney General Jeff Sessions last week, there are still some questions regarding the groups that collected the money from the settlements. As reported by Investors Business Daily, using one $17 billion settlement, the Obama administration managed to channel money to these following organizations:
- La Raza, which is a far-left Latino organization known for pressuring banks to give loans to low-income Hispanics.
- National Community Reinvestment Coalition, one of the top lobbying groups supporting the Community Reinvestment Act, a 1977 piece of legislation that’s a favorite of the left.
- Operation Hope, a group from South Central in Los Angeles, which pressures banks to give “dignity loans” to individuals who would otherwise not qualify.
- Neighborhood Assistance Corporation of America, a group whose leader called himself a “bank terrorist,” something that’s apparently a lot more acceptable since the days of Patty Hearst.
“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,” the attorney general said upon ending the program.
“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. 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.”
If U.S. corporations were to be caught in misconduct, it’s only natural that they should be held accountable both legally and monetarily. But, the money from judgments and settlements ought not to be used as a political slush fund, funneling money to left-leaning organizations such as La Raza.