"Department of Justice officials diverted millions of dollars slated for victims of the 2008 housing meltdown to politically favored third parties, including “left-wing radical groups,” according to the chairman of a House of Representatives oversight subcommittee.Rep. Sean Duffy , a Wisconsin Republican and chairman of the House Financial Services oversight and investigations subcommittee, said Friday the officials “skimmed” off three percent from mortgage-related bank settlements.
This created what he called a $500 million “slush fund” that could be steered toward favored groups.
...Justice officials were long able to “skim 3 percent of any settlement money into their own account to for the most part spend it the way they see fit,” Duffy told participants in the media briefing hosted by the Cause of Action Institute, a nonprofit legal watchdog group."
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