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The U.S. Department of Justice has launched an investigation into a group connected to billionaire entrepreneur Reid Hoffman regarding its partial funding of E. Jean Carroll’s lawsuits against President Donald Trump, according to a source familiar with the matter.
The investigation is being conducted by the U.S. Attorney’s Office in Chicago and is reportedly examining potential money laundering and obstruction-related issues involving the organization American Future Republic. The source, who requested anonymity due to the ongoing nature of the investigation, stated that the probe centers on the funding provided for Carroll’s legal battles against Trump.
American Future Republic helped cover a portion of Carroll’s legal expenses in her successful lawsuits accusing Trump of sexual abuse and defamation. While earlier reports suggested investigators were examining whether Carroll committed perjury during a 2022 deposition concerning the funding of her lawsuits, the source clarified that Carroll herself is not the primary focus of the investigation.
Federal prosecutors have not publicly disclosed any evidence against the organization. Legal experts note that third-party litigation funding is common in the United States and is generally considered lawful. Representatives for the U.S. Attorney’s Office, American Future Republic, and Hoffman’s venture capital firm, Greylock Partners, have not provided detailed comments on the matter.
Hoffman, a co-founder of LinkedIn and a prominent Democratic donor, has frequently been critical of Trump. The investigation comes amid broader efforts by Trump’s Justice Department to scrutinize individuals and organizations viewed as political opponents.
Carroll won two major legal victories against Trump in 2023 and 2024. In one case, a jury concluded that Trump sexually assaulted and defamed her, awarding significant damages. A second jury later ordered Trump to pay $83.3 million for additional defamatory statements. Trump has consistently denied the allegations and continues to challenge the rulings through ongoing legal proceedings.
An appeals court previously addressed questions regarding Carroll’s statements about outside funding, finding that she plausibly forgot about limited financial assistance received by her legal team and that additional evidence did not indicate intentional misconduct.
The investigation remains active, and officials have not announced any criminal charges. Acting Attorney General Todd Blanche has reportedly recused himself from the matter due to his previous role as one of Trump’s personal attorneys during Carroll-related appeals.
