Transcript for Steve Bannon charged for crowdfunding campaign
Good evening, and it's great to have you with us here on a Thursday night. Joe Biden about to become the democratic nominee. More than three decades in the making. President trump tonight in Biden's home state, by design. What no one saw coming today was the other major story unfolding the arrest. Steve Bannon arrested and charged with defrauding hundreds of thousands of Americans after they had donated to a campaign to help build president trump's border wall. Bannon and three others are accused of raising more than $25 million to help build the wall and then using some of that money for their personal benefit. Bannon arrested today on a $28 million yacht off the coast of Connecticut. He was the campaign CEO who helped trump win and then joined him in the white house. Today, the president distanced himself from Bannon and what a he said about about campaign to build the wall. Jonathan Karl leading us off. Reporter: Today, the man who ran president trump's presidential campaign and served as his chief strategist in the white house was arrested off the coast of Connecticut on this $28-million-dollar luxury yacht off the coast of Connecticut and charged with money laundering and fraud. Steve Bannon and three others are accused of defrauding hundreds of thousands of people by personally profiting off a scheme to raise money to help build president trump's border wall. Build that wall! Build that wall! Reporter: With a group called "We build the wall," Bannon and the others raised $25 million, promising to build a section of the wall themselves. They see that this is a way that they can take action to actually, you know, make happen a physical barrier on the southern border and support president trump and what president trump is trying to do. Reporter: The group promised donors a brick in the wall with their names on it. You're not gonna last forever, but your brick will. Reporter: The project was started by Brian kolfage, an air force vet who lost three limbs in Iraq. In fundraising pitches, he insisted every penny raised would go to the wall. 100% of your money goes towards the wall. It's not going to line someone's pockets. I'm taking zero dollars as a salary. No compensation. Reporter: But the indictment alleges kolfage spent hundreds of thousands of dollars on home renovations, payments toward a boat, a luxury SUV, a golf cart, jewelry, cosmetic surgery, personal tax payments, and credit card debt. And that Bannon himself used hundreds of thousands of dollars in donations for his own personal expenses. President trump today downplayed his connections to Bannon, who he fired three years ago. I feel very badly. I haven't been dealing with him for a long period of time. Reporter: The president said he never liked the build the wall campaign. I didn't like when I read about it, I didn't like it. I said, this is for government. This isn't for private people. It sounded to me like showboating. Reporter: But the president's son, Donald Trump Jr. Promoted the project at an event last year, saying it's exactly the kind of thing the private sector should be doing. This is private enterprise at its finest. Doing it better, faster, cheaper than anything else. And what you guys are doing is pretty amazing. Reporter: In a statement today, Donald Trump Jr. Said other than the speech, he never supported the project. And said if the allegations are true, quote, the group deserves to be held accountable. Let's goat Jon Karl live in Washington. Tonight Steve Bannon pleaded not guilty and he's out on bail? Out on bail, but his travel is restrict to the D.C. And new York areas. He is not allowed to go on private jets or yachts. David, this is just the latest in a long list of close trump associates who have faced criminal charges, including his former personal lawyer, his campaign chairman, his first political adviser, his national security adviser. Many people very close to the president at top echelons facing criminal charges. Jon, thank you. All of this comes as Joe
This transcript has been automatically generated and may not be 100% accurate.