CASTLE ROCK, Colo. — A man from Castle Rock is among four people -- a group that includes former White House adviser Steve Bannon -- indicted on federal charges they siphoned off hundreds of thousands of dollars in donations to a fundraising campaign aimed at building a wall along the U.S.-Mexico border.
Tim Shea, 49, of Castle Rock was released on a $250,000 unsecured bond during a appearance in federal court on Thursday, meaning he will forfeit that amount in he fails to attend future court appearances.
A federal judge also ruled to restrict Shea's travel to Washington D.C. and the Southern District of New York.
Shea is not allowed to travel internationally, and he must relinquish his passport. Shea said he did not have a passport.
The judge also sentenced Shea to pretrial supervision and ruled he is prohibited from contacting the defendants, possessing firearms and raising money for We Build the Wall or any related entity.
Shea must advise the court or his pretrial officer in writing for any change in address or phone number, the judge ruled.
The conditions of the bond can be reconsidered by the Southern District of New York, the Judge ruled.
According to an indictment unsealed Thursday in New York, Bannon, Shea, Brian Kolfage and Andrew Badolato siphoned money donated to the online "We Build The Wall" project -- which raised $25 million. Among the allegations is that the group transferred "hundreds of thousands of dollars" to Kolfage to support his "lavish lifestyle" and that the group concocted an elaborate scheme to cover up the payments.
All four were arrested Thursday, according to the U.S. Attorney's Office for the Southern District of New York.
A law enforcement source confirmed to 9NEWS that U.S. Postal Inspectors arrested Shea at his Castle Rock home.
Each faces one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
Bannon, a longtime strategist of President Donald J. Trump's, had publicly asserted that the online fundraising campaign was run by volunteers, according to a statement announcing the indictments issued by the U.S. Attorney's Office for the Southern District of New York.
In reality, according to the statement, the four each "received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization’s public representations."
Federal prosecutors allege that Kolfage, a Purple Heart winner and triple amputee, "covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall," that Bannon, "through a non-profit organization under his control ('Non-Profit-1'), received over $1 million from We Build the Wall." At least some of that money was spent by Bannon on personal expenses, according to the statement.
According to the statement, the four then "devised a scheme to route those payments from We Build the Wall to Kolfage indirectly through Non-Profit-1 and a shell company under Shea’s control, among other avenues. They did so by using fake invoices and sham “vendor” arrangements, among other ways, to ensure, as Kolfage noted in a text message to Badolato, that his pay arrangement remained "confidential” and kept on a "need to know" basis.
In a December 2018 interview with 9NEWS, Shea's wife, Amanda, said she and her husband had met Kolfage several years earlier and eventually developed a conservative news website with him.
When Kolfage had the idea to set up a GoFundMe to help fund the border wall, Amanda Shea said she was immediately on board.
"He is just the face of it, because he's really good at that, and I do a lot of the backend stuff," Amanda Shea said during a Skype interview.
Some donations were sent to a post office box the Sheas created in Colorado, she told 9NEWS.
"He [Kolfage] is a triple amputee veteran. For him to get out and run all these errands and stuff is really not that feasible for him," Amanda Shea said. "Plus my husband and I are more focused on the backend stuff, so we said, 'no problem, we'll set it up.'"
She told 9NEWS the group had been in contact with the White House to ensure the donations can be used on a border wall, but she did not disclose who at the White House she communicated with. She also told 9NEWS that if the wall isn't built, they want to refund everyone's money.
In January, Tim Shea created a limited liability company called Winning Energy. According to the company's website, it is a "premium energy drink brand." The can design, with a superhero-dressed President Trump, lists the drink as "12 oz of liberal tears."
According to the company's Facebook page, Winning Energy sponsored the July 4 Destin, Fla. Trump boat parade. The video includes a shot of a boat with Trump/Pence flags and the name "Warfighter" painted on the back.
The federal indictment lists a 2019 Jupiter Marine boat named "Warfighter" as one of the assets to be forfeited.
According to federal election records, Amanda Shea, who was not arrested, listed her employer as "We Build The Wall Inc." when she made two contributions to the President's reelection campaign and a committee to help him get reelected.
On Aug. 7, 2019, Amanda Shea listed her occupation as "board administrator" for "We Build The Wall Inc." when she contributed $2,800 to Donald J. Trump for President candidate committee, and another $2,800 to Trump Victory political action committee.
No one answered the door at the Shea's Castle Rock home when visited by 9NEWS on Thursday. He is scheduled to appear in a teleconference hearing in the Southern District of New York on Aug. 1.
Former Republican Congressman and gubernatorial candidate Tom Tancredo is on the advisory board for "We Build The Wall."
In a text message on Thursday afternoon, Tancredo said, "This is the first I have heard about it. I have not been contacted by any authorities. I can't imagine that Steve Bannon, whom I know well, is either this careless or this dumb. I heard in the press that Bannon will be pleading not guilty and I will wait for more information or evidence before making any further comment.
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