The U.S. Justice Department has opened a criminal investigation into American Future Republic, a nonprofit run by billionaire Reid Hoffman, over its funding of author E. Jean Carroll’s civil litigation against former President Donald Trump, several sources told CBS News.
What happened
The probe, led by the U.S. Attorney’s Office in Chicago, is examining whether crimes including money laundering, conspiracy, and obstruction occurred in connection with the nonprofit’s financial support of Carroll’s legal defense costs. The investigation originally included perjury allegations against Carroll related to her depositions but has since shifted focus solely to the nonprofit and its role in financing the litigation. Officials have clarified that Carroll herself is not a target of the inquiry.
American Future Republic disclosed providing $7 million to Kaplan Hecker & Fink, the law firm representing Carroll, according to its 2020 tax filings. Hoffman serves as the nonprofit’s president and chairman of the board. The source of funding was publicly revealed by Trump’s attorneys in 2023 amid Carroll’s defamation lawsuits. The U.S. Court of Appeals later noted Carroll was not directly involved in matters concerning the source of the funding.
Carroll accused Trump of sexually abusing her in the mid-1990s and filed two defamation lawsuits against him. Juries found Trump liable for sexual abuse and defamation, awarding Carroll multimillion-dollar damages upheld on appeal. Acting Attorney General Todd Blanche, who previously represented Trump in related appeals, is recused from the Chicago investigation.
Why it matters
This investigation highlights the growing scrutiny around third-party litigation funding in politically charged cases involving prominent public figures. Potential financial crimes such as money laundering and conspiracy could complicate ongoing litigation and have broader implications for nonprofit involvement in high-profile legal battles. The probe also underscores the Justice Department’s active role in monitoring the integrity of major civil suits tied to political controversies.
Background
E. Jean Carroll first publicized her sexual abuse allegations against Trump in 2019. After initial defamation lawsuits stalled, Carroll successfully pursued claims under New York’s Adult Survivors Act. The nonprofit funding from Hoffman came to light shortly before trials began, prompting challenges from Trump’s legal team. Courts have so far ruled the funding arrangements were not materially relevant to the defamation cases’ outcomes.
Reid Hoffman stated in a 2023 interview that his organization supported Carroll’s voice against a wealthy and powerful adversary, emphasizing that the funding started after Carroll filed her lawsuit. The ongoing investigation by the Chicago U.S. Attorney’s Office aims to clarify the legality of the financial transactions connected to that support.
Sources
This article is based on reporting and publicly available information from the following source:
Read more US News stories on Goka World News.