So they exaggerated while selling the idea, or considered those ancillary expenses a legitimate, inseparable part. Who doesn’t exaggerate?
Another thing: what business is it of the government anyway? If contributors are unhappy with the results or management, they can stop. Often that’s how even the most flagrant flim-flams are treated: “sorry bud; consider it tuition.”
This is entirely political and it’s directed at anyone who defies the powers. Like us.
1: Yes it is entirely political. Bigger charities do much bigger fraud. But when you are Trump or Bannon, you have to dot your i’s and cross your t’s knowing you are a target.
2: Exaggerating in business and law is lying
3: Donors complained (possibly a setup, but who knows), so govt got involved. Without NY wall donors willing to complain, NY AG would have no case.
4: It was stupid to lie, stupid to leave a paper trail, and stupid to be texting this stuff. If you are going to skirt the law, have some discretion, especially as a top 10 political target in the country.