Obama’s Justice Department was a huge fundraiser for liberal groups, but Sessions says, “no more free money.”

Radical organizations such as ACORN and The Urban League received large donations because the Justice Department would force companies to donate as part of settlement agreements.

But that policy of forcing companies to fund leftist causes is ending now.

U.S. Attorney General Jeff Sessions says, “No more money for private groups” as part of federal settlements.  Obama’s Justice Department forced companies to give leftist groups hundreds of millions of dollars…but no more.

Obama’s Justice Department forced companies to meet some of their settlement obligations by directing “donations” to various non-governmental advocacy organizations that serve Democratic constituencies and objectives.

These organizations were neither parties to the case, nor victims of the company’s behaviors.

These “donations” are from money rightfully owed to the taxpayers, and should have gone to the Treasury and spent at the direction of Congress.

The Washington Post reports:

Attorney General Jeff Sessions is reversing an Obama administration practice that encouraged and sometimes required banks and other companies to donate large amounts of money to outside groups as part of settlement agreements with the federal government.

In the Obama administration, the Justice Department negotiated settlements, especially with large banks in connection with the residential mortgage-backed securities crisis, that required the settling parties to pay funds to third-party community organizations, such as the National Council of La Raza, Habitat for Humanity and the National Urban League.

“These third-party organizations were neither victims nor parties to the lawsuits,” Sessions said in a memo sent Wednesday to senior Justice Department officials and U.S. attorneys’ offices. Sessions said that, effective immediately, settlement payments to non-governmental third parties, such as advocacy or housing groups, are prohibited.

“When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people — not to bankroll third-party special interest groups or the political friends of whoever is in power,” Sessions said in a statement.

“Unfortunately, in recent years, the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement,” Sessions said.

“With this directive, we are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm and punish and deter unlawful conduct.”

The Obama administration’s third-party settlement practice had been criticized by Republican commentators and lawmakers, who have referred to it as a “slush fund.”

In January, House Judiciary Committee Chairman Bob Goodlatte (R-Va.) introduced legislation to prohibit the Justice Department and other federal agencies from requiring defendants to donate money to third-party groups as part of a settlement.

Under Sessions’ policy, settlement funds will go to the U.S. Treasury. An exception to the policy are payments that directly remedy the harm addressed in the settlement, including harm to the environment or from official corruption, according to the memo.

The policy also does not apply to payments for legal or other professional services in connection with the case and to payments that provide restitution to a victim.

It’s about time that they stopped using our tax dollars and the extortion of litigation (legitimate complaints or not) to fund some politician’s pet project.

Investor’s Business Daily reports just how bad the problems were during the Obama years:

Extortion: Radical Democrat activist groups stand to collect millions from Attorney General Eric Holder’s record $17 billion deal to settle alleged mortgage abuse charges against Bank of America.

Buried in the fine print of the deal, which includes $7 billion in soft-dollar consumer relief, are a raft of political payoffs to Obama constituency groups. In effect, the government has ordered the nation’s largest bank to create a massive slush fund for Democrat special interests.

Besides requiring billions in debt forgiveness payments to delinquent borrowers in Cleveland, Atlanta, Philadelphia, Oakland, Detroit, Chicago and other Democrat strongholds, the deal also requires BofA to make billions in new loans, while also building affordable low-income rental housing in those areas.

He’s written back-door funding for Democrat groups into other major bank deals he’s brokered, including the $13 billion JPMorgan Chase settlement and the $7 billion Citibank deal. Liberal groups stand to reap millions more from those deals.

All told, Holder has shaken down the nation’s largest banks for a whopping $128 billion, more than a 10th of a trillion dollars, and counting. Morgan Stanley and Wells Fargo are reportedly in talks with Justice to settle additional mortgage cases.

In effect, lenders are bankrolling the same parasites that bled them for the risky loans that caused the mortgage crisis. With new cash, they can ramp back up their shakedown campaign, repeating the cycle of dangerous political lending that wrecked the economy.

These settlements have little, if anything, to do with “justice” or restitution for innocent victims. In its 30-page “statement of facts,” Justice couldn’t provide a single shred of evidence of fraud against BofA. Nor could it identify a single “victim” by name.

The attorney general is actually perverting justice by extorting billions of dollars from the largest banks in the country and giving it away to the president’s political friends and favorite political causes.