Specifically, there is one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering; these charges only deal with the movement of money to Kofalge, and not with the operation of his organization.
The person pressing the charges, the Russian Red Diaper Baby "Audrey Strauss", had this to say:
U.S. Attorney for the Southern District of New York Audrey Strauss charged Bannon, Brian Kolfage, Andrew Badolato and Timothy Shea with defrauding donors of hundreds of thousands of dollars “under the false pretense that all of that money would be spent on construction.”
Prosecuting on the mechanics of the fraud may just be a strategic decision, but that was supposedly her motivation.
As for Bannon, don't know that anyone said they wouldn't be paying consultants. Pretty flimsy basis for any of the charges. As a donor, I sure didn't have a problem with it.
PS, It’s Kolfage, not Kofalge.