Thursday, September 8, 2016 11:47 am
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WASHINGTON - The Justice Department has been funneling settlement money, as a result of federal lawsuits, to left-wing activist organizations, such as La Raza and ACORN, avoiding Congressional scrutiny to pursue the Administration's political agenda, a press release from the New Hampshire congressman said today.
U.S. Rep Frank Guinta, R-N.H., voted yesterday for the Stop Settlement Slush Funds Act to stop the abuse of executive power and mandate that only legal plaintiffs or the U.S. Treasury receive settlement funds.
"The Department is diverting funds from legitimate victims to politically connected interest groups that support the President and his allies," said Guinta. "It's another example of this out-of-control administration collecting and parceling out fees and penalties in the billions of dollars, blurring the Constitution's separation of powers, while hurting the people it claims to be helping."
A House Judiciary Committee investigation revealed that, during a two-year period, the Justice Department siphoned as much as $880 million to partisan interest groups, which could divert the money to political purposes. The Wall Street Journal reports that the Justic Department began depositing a percentage of mortgage lender settlements in a discretionary account, after Congress reformed a similar program at the Department of Housing and Urban Development.
Rep. Guinta is a member of the Financial Services Committee, which jointly conducted the investigation. "In many cases, the Administration allowed banks to pay third parties in lieu of vicitms. I'm working to create more open, transparent government that helps those who truly need our assistance."