Bannon pleads not guilty to fraud charges

Former presidential adviser accused of taking money donated for border wall

NEW YORK, N.Y. (KYMA, KECY/NBC News) - Steve Bannon, the former advisor to President Donald Trump faces fraud charges for his involvement in a private fundraiser to build a border wall.

Prosecutors say most of the money intended for border wall construction actually wound up in the pockets of Bannon and three other defendants.

The charges accuse the men behind the website "We Build the Wall" of promising money raised through the site would be used to help President Donald Trump construct a barrier at the U.S. border with Mexico.

NBC News has learned, very little of the $25-million raised was actually used to build a border wall. Although some was spent on construction, prosecutors say most of the cash went into Bannon and his partners' bank accounts to be used for personal expenses.

"Its a paper case it's based on documents which is the kind of case prosecutors love because it makes for very strong evidence." said former U.S. Attorney Barbara McQuade.

Bannon was arrested on board this yacht - the 152-foot "Lady May" in Long Island Sound. Federal agents took him into custody without incident.

At the White House, reporters asked President Trump about the arrest of his former aid and confident.

"But I know nothing about-- I was not involved in the project. I have no idea who was." said the president.

If convicted, Bannon could face up to 20-years in prison for each charge.