A New Era of Corruption: Financial Conflicts of Interests for President-Elect Donald Trump and his Incoming Administration

Elections & Politics #140 | By: Nicholas Gordon | December 12, 2024

Photo by Carlos Herrero

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Summary

For a President-elect who ran a campaign on claims to support the working-class and with renewed vows to ‘drain the swamp’ of D.C. government elites, Donald Trump has appointed a problematic number of billionaires with corporate conflicts of interest to his incoming cabinet. This is not new territory for Trump: the cabinet from his first presidency was the richest cabinet in U.S. history and had an onslaught of ethics violations, including the misuse of taxpayer funds, inaccurate financial reporting, and quid pro quo political favors, with numerous cabinet officials embroiled in ethics scandals during Trump’s four years in office. By appointing a cadre of crony billionaires to prominent government positions, Trump is now making a mockery of his pledge to support blue-collar Americans. Here’s a brief breakdown of some of Trump’s uber-wealthy cabinet picks and their conflicts of interest. 

Elon Musk, the world’s richest man and a diehard Trump enabler whom Trump recently appointed to his newly created Department of Government Efficiency (DOGE) which aims to “cut government spending”, currently receives billion-dollar government contracts and subsidies for his satellite- and vehicle businesses. Musk’s new government position may give him unlimited power to shape regulations, contracts, and budgets in favor of his personal business interests, and to the detriment of his competitors. As Musk’s relations with Trump evolve and his role within the administration takes shape, this column will analyze the effects of his conflicts of interest.

Vivek Ramaswamy, the billionaire businessman and former presidential candidate, was appointed by Trump to co-chair DOGE. As the founder of a pharmaceutical company and an investment firm, Ramaswamy could have conflicts of interest in his DOGE role to reduce federal regulations. As outside advisors not subject to senate confirmation hearings, Musk and Ramaswamy will not be required to abide by conflict of interest laws, nor to disclose their financial interests.

David Sacks, a billionaire venture capitalist and Silicon Valley insider who invested in his pal Musk’s space technology company SpaceX, will serve as the “White House A.I. & Crypto Czar,” another new position created by Trump that will not require Senate confirmation. Sacks has significant investments and connections in both the AI and Crypto worlds.

Linda McMahon, billionaire co-founder of World Wrestling Entertainment (WWE) along with her husband Vince McMahon, is Trump’s nomination for Education Secretary. A huge donor to the Trump campaign, Linda McMahon has ties to a far-right think tank that promotes cutting federal education funding, and expanding school privatization, which could lead to more for-profit schools and less equal opportunity for children. A lawsuit filed on behalf of five men against Linda McMahon alleging that McMahon and her husband ignored acts of child sexual abuse during their tenure heading the WWE was recently paused by a federal judge in Marlyand while the court deliberates state law for such cases.

Howard Lutnick, Trump’s billionaire choice for Commerce Secretary, is a pro-cryptocurrency investment banker with reported financial ties to China. Lutnick’s significant gains from China appear to be in direct violation of the Emoluments Clause of the U.S. Constitution, which prohibits federal officeholders from receiving payments of any kind from a foreign state or its representatives.

Additional ultra-rich Trump picks and nominees with potential conflicts of interest include: Kash Patel, for FBI Director,  who runs a supposed ‘non-profit’ with links to MAGA-branded merchandising; Doug Burgum, proposed Secretary of the Department of the Interior, who has close connections with magnates from the oil and gas industries; Scott Bessent, for Treasury Secretary, who has made enormous profits as a Wall Street hedge fund capitalist; Dr. Janette Nesheiwat, for Surgeon General, hawks her own line of vitamins, including selling them on the Trump-owned social media platform Truth Social; and Paul Atkins, the CEO of a financial services consultancy who Trump nominated for head of the Securities and Exchange Commission, is an advocate for the crypto industry, favoring de-regulation.

As the chief shareholder of Trump Media and Technology Company (DJT), Trump himself stands to gain enormous financial profit from his presidency, as he leverages the value of the shares in his company to acquire businesses and invest in crypto-currency markets, members of which have also been major donors and supporters of Trump. And just as Trump violated the Emoluments Clause in his first presidency by capitalizing on foreign government officials staying at his hotels and clubs and using his golf clubs, he will continue to do so in his second presidency, refusing to divest and using his Executive Office to rake in millions of dollars for his family business.

The President-elect and his federal officeholders have a responsibility to serve the best interests of the American people while avoiding conflicts of interest and ethics violations, and exercising transparency in their government work and business dealings. But as Trump made clear in his first presidential term, he will not hold himself or his wealthy allies accountable. Moreover, as the conservative-led Supreme Court has granted Trump presidential immunity from criminal prosecution, we could be heading into an era of unprecedented U.S. government corruption. US RESIST NEWS will be keeping a close watch on how the conflicts of interest of the President-elect and his government officials play out.   

Engagement Resources:

• Campaign Legal Center: Advancing Democracy Through Law: Works to defend democracy and the rule of law, protect the Constitution, and fight for Americans’ rights. 
• Public Citizen: Champions citizens’ interest, defends democracy, resists corporate power, and “fights to ensure that the government works for the people.”
• Citizens for Ethics and Responsibility in Washington: CREW: Provides in-depth legal analysis and investigations of government officials who “sacrifice the common good to special interests and personal gain.”

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