
Image Credit: Illustration by Lisa Larson-Walker/ProPublica. Footage by Bill Clark/CQ-Roll Name, Inc by Getty Footage (Sen. Ron Wyden) and Tom Williams/CQ-Roll Name, Inc by Getty Footage (Sens. Elizabeth Warren and Jack Reed).
Trump Administration
Senators Call for DOJ Investigation into Potential Conflicts of Interest Tied to DOGE and the Department of Justice
Democratic Senators Highlight Ethical Concerns Over DOGE Employees’ Financial Activities Following ProPublica’s Investigation
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Overview of Recent Developments
Three Democratic senators have formally requested the Department of Justice and other federal agencies to examine whether certain officials within the Department of Effectiveness have violated conflict of interest laws by holding stocks in companies affected by their agency’s decisions.
The letter, sent on Wednesday by Senators Elizabeth Warren, Ron Wyden, and Jack Reed, references ProPublica’s recent findings. These reports revealed that an aide assigned to the Consumer Financial Protection Bureau (CFPB) was involved in overseeing significant layoffs at the agency while simultaneously maintaining stock holdings valued at up to $715,000-investments that are prohibited for bureau employees.
Lawmakers’ Concerns and Ethical Implications
The senators emphasized that such cases exemplify a broader pattern of ethical lapses involving Elon Musk and DOGE staff, suggesting that these individuals are disregarding established ethical standards and regulations to enrich themselves at the expense of the American public. The lawmakers, Warren and Reed, serve on the Senate Committee on Banking, Housing, and Urban Affairs, while Wyden is the ranking member of the Senate Finance Committee.
Their letter urges Attorney General Pam Bondi, the Office of Government Ethics, and inspectors general overseeing the CFPB, Treasury, and IRS to investigate whether the involved officials divested from conflicted holdings and to scrutinize their roles within the agencies. The senators argue that the American people deserve transparency regarding whether their interests were compromised by officials acting in violation of federal ethics laws.
Background and Recent Revelations
Recent weeks have uncovered that at least two DOGE aides assigned to the CFPB played roles in orchestrating mass layoffs at the agency, despite warnings from ethics attorneys that they should not hold stocks or participate in major decisions due to conflicts of interest. One such aide, Gavin Kliger, was advised to divest from his holdings but continued to oversee layoffs that eliminated nearly 90% of the CFPB’s workforce-a move described by experts as a clear violation of federal conflict of interest statutes.
Official Responses and Next Steps
The Department of Justice has declined to comment on the matter. Similarly, the Treasury Department, IRS, DOGE, and CFPB have not responded to inquiries. A spokesperson for the Office of Government Ethics stated that they do not comment on specific cases. Kliger did not respond to requests for comment. The White House has dismissed the allegations, asserting that they are attempts to undermine DOGE’s mission, and claimed that Kliger was not involved in the layoffs.
Significance of the Issue
This controversy underscores ongoing concerns about the blurring of lines between private interests and public service, especially during the Trump administration. Notably, the administration’s focus on cryptocurrency regulation and Elon Musk’s dual roles as DOGE founder and federal contractor have raised questions about conflicts of interest. Musk recently announced his departure from the administration, but the broader issue remains relevant.
The senators’ inquiry adds to a growing call from watchdog groups for an independent investigation into Kliger’s conduct. Violations of conflict of interest laws can lead to substantial penalties, including fines up to $250,000 and imprisonment for up to five years. However, some experts suggest that enforcement may be limited under the current political climate, as the Trump administration deprioritized issues related to ethics and public integrity.
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