Justice Department Targets Billionaire's Nonprofit Funding E. Jean Carroll's Legal Battle Against Trump

The Justice Department has initiated a criminal investigation into a nonprofit operated by billionaire Reid Hoffman, which financed part of author E. Jean Carroll's civil litigation against President Trump, according to multiple sources.

This investigation, spearheaded by the U.S. Attorney's Office in Chicago, is scrutinizing possible offenses including money laundering, conspiracy, and obstruction.

Details surrounding the impetus for the investigation remain unclear, and the legal framework of the case is undetermined. Hoffman's response has not been immediately available.

On Wednesday evening, a source indicated that the inquiry was centered on whether Carroll had committed perjury during a deposition related to her civil lawsuits against Trump, where she accused him of sexual abuse and defamation.

However, a follow-up from the same source clarified that Carroll is not the target; the focus is on the funding provided by Hoffman's nonprofit, American Future Republic, which assisted in covering some of her legal expenses.

After this report surfaced, Andrew Boutros, the U.S. attorney for the Northern District of Illinois, stated on X that the Chicago U.S. Attorney's Office has never opened a criminal investigation into E. Jean Carroll. Any claims to the contrary are "categorically false."

Two additional sources confirmed that the probe is indeed centered on American Future Republic. One source noted that while perjury allegations against Carroll were part of the original referral received earlier this year, prosecutors are not pursuing that angle currently.

Carroll's legal counsel has opted not to comment on the ongoing investigation.

Carroll accused Trump of sexually assaulting her in a department store dressing room during the mid-1990s and detailed the incident in a 2019 New York Magazine article. Trump denied the assault and claimed Carroll was not his "type." In 2019, Carroll filed a defamation lawsuit against Trump, which faced delays in court.

She subsequently launched a second defamation lawsuit in 2022, incorporating a claim of rape under New York's Adult Survivors Act.

In two civil lawsuits, Carroll accused Trump of sexual abuse and defamation. A jury found Trump liable for sexual abuse and defamation in 2023 due to comments he made in 2022, awarding Carroll $5 million in damages.

A second jury in 2024 ruled him liable for defamation regarding comments made about Carroll in 2019, awarding her $83.3 million in damages. Both judgments were upheld on appeal.

Acting Attorney General Todd Blanche, who represented Trump during some litigation while it was under appeal, is recused from the Chicago case concerning E. Jean Carroll and her litigation funding.

Hoffman's financial support for Carroll's lawsuit was first disclosed in legal documents submitted by Trump's attorneys in April 2023, just before the trial for the initial defamation lawsuit.

During an appeal, Trump's attorneys raised concerns about Carroll's statements regarding outside funding, but the appeals court determined that she had "plausibly represented" that she had forgotten about the limited external funding her counsel secured.

The court noted that Carroll was not involved in decisions regarding who funded her litigation costs.

Trump's lawyers argued that her inaccuracies about outside funding cast doubt on her credibility; however, the court concluded that litigation funding was irrelevant to the case.

Hoffman serves as president and chairman of American Future Republic according to tax records. The nonprofit disclosed providing $7 million to Kaplan Hecker & Fink, the law firm representing Carroll, in its 2020 990 filing.

This nonprofit operates out of Chicago.

In a May 2023 interview with the Washington Post, Hoffman explained his decision to fund Carroll's legal action, stating they did not encourage the lawsuit but joined after it was already filed.

Hoffman emphasized that his team believed Carroll's voice deserved to be heard as she challenged someone significantly wealthier and more powerful.