Feds are investigating whether Bank of American may have violated the federal Fair Credit Reporting Act by allowing Bernie Sanders’ presidential campaign to make unauthorized, unauthorized loans, a federal prosecutor said Monday.
Interested in ?
Add as an interest to stay up to date on the latest news, video, and analysis from ABC News.
Federal prosecutors have been probing whether the bank was involved in a pattern or practice of lending to the Sanders campaign in violation of a law that bars unauthorized fundraising for political candidates, the U.S. Attorney for the Southern District of New York said in a statement.
The statement from Acting U.K. Attorney Michael O’Neill did not provide details on the case or the extent of the investigation, but O’Neil said it involves “serious allegations that may involve the lending of funds to a political candidate for personal gain.”
It is not known whether the loans were made by the campaign or a third party, O’Malley said.
It is also not known how many loans were received.
Sanders is expected to speak with the bank and will explain why he has taken on the responsibility of handling the loan, O”Neil said.
The bank has not returned calls for comment.
Sanders and other Democratic presidential hopefuls have criticized the banks decision to accept the loans.
The campaign has said it will continue to seek loans to help with its fundraising efforts.
Sanders campaign manager Jeff Weaver told ABC News the bank had taken the loans “in full compliance with the Fair Credit and Consumer Protection Act, which prohibits unlawful or deceptive practices in the lending industry.””
This is just the latest example of how banks, banks have been used by the Clinton campaign and other entities to make predatory loans that ultimately cost American families, and American workers,” Weaver said.
In addition to the loans, the bank is also under investigation for other matters, O”Neill said.
He did not elaborate on those matters.
Sanders has also said he intends to hold a press conference at 3 p.m.
ET on Tuesday, July 10, at the Wells Fargo headquarters in downtown Minneapolis.
He said he expects to make a case for a federal bailout of the bank, but has said that the bank’s board should be elected by the public and should not be appointed by the candidate.”
And I believe that the board should appoint people who will be accountable to the voters of the United States, not the campaign.””
The campaign has no control over the board members, so what the campaign has control over is the bank.
And I believe that the board should appoint people who will be accountable to the voters of the United States, not the campaign.”
Sanders has raised more than $18 million so far, according to his campaign.
Clinton, the presumptive Democratic presidential nominee, has raised about $32 million.
She is expected on Monday to formally announce her campaign’s decision.