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conflicts of interest
Warren Leads Demand for Probe Into Hegseth's Reported Efforts to Profit From Iran War
Democratic lawmakers said if reports of Hegseth attempting to buy defense stock weeks before the war are true, it "would be a profound conflict of interest" and a "betrayal of the nation paying the price for this war."
Apr 02, 2026
Senate Democrats are pushing for an investigation into US Defense Secretary Pete Hegseth following a report that he attempted to make a “big investment” in weapons stock just weeks before President Donald Trump launched an aggressive war against Iran.
Three Democrats on the Senate Armed Services Committee—Sens. Elizabeth Warren (D-Mass.), Tammy Duckworth (D-Ill.), and Richard Blumenthal (D-Conn.) were joined by Sens. Gary Peters (D-Mich.) and Jeff Merkley to send Hegseth a letter on Wednesday.
They told the secretary that his reported attempt to broker the deal "would be a profound conflict of interest and a potential violation of your federal ethics agreement—and betrayal of the nation paying the price for this war and the troops you are sending into harm’s way."
The Financial Times reported earlier this week that Hegseth's "broker at Morgan Stanley contacted BlackRock in February about making a multimillion-dollar investment in the asset manager’s Defense Industrials Active ETF... shortly before the US launched military action against Tehran.”
However, the purchase was reportedly never made because the massive bundle of stocks was not available to Morgan Stanley clients at the time.
A Pentagon spokesperson has also denied the story, calling it "entirely false and fabricated" and claiming that neither Hegseth nor any of his representatives ever approached BlackRock.
But, as the lawmakers noted, FT reported that the inquiry was significant enough for BlackRock to flag it internally.
Hegseth and other Pentagon officials confirmed by the Senate are prohibited by law from owning or purchasing publicly traded stock in the 10 companies that have received the largest Defense Department contracts over the past five years.
But the fund held stocks in several of these companies, including Lockheed Martin, Northrop Grumman, General Dynamics, Huntington Ingalls, Boeing, RTX Corporation, and L3Harris Technologies.
Reports of the proposed deal by Hegseth's broker come as the Trump administration has faced other accusations of trading on insider information about the president’s next moves to win big on prediction market services. Platforms like Polymarket have seen bettors take home monster winnings by placing wagers predicting major military actions in Venezuela and Iran just hours before Trump launched them.
The lawmakers noted that while the war is costing American taxpayers more than $1 billion per day and has saddled Americans with soaring gas prices, it has proven highly lucrative for major defense contractors, whose stocks jumped significantly in the days after the war was launched, even as the rest of the market took a tumble.
The Trump administration is currently demanding another $200 billion to prosecute the war on top of a $1.5 trillion budget request to fund the Defense Department, which the lawmakers said would likely result in these companies’ profits and stock prices continuing to climb.
The US-Israeli war against Iran, launched on February 28, has been condemned as illegal by many international law experts and human rights groups, who have accused the US of violating the UN Charter and committing war crimes.
According to a report on Wednesday from the Human Rights Activists News Agency (HRANA), a US-based human rights monitor for Iran, more than 1,600 civilians have been killed since the war began, including 244 children. At least 13 US troops have also been killed since the conflict broke out.
The lawmakers told Hegseth regarding his reported investment attempt: “If this report is accurate, it would appear to represent an appalling effort to profit off of your knowledge of the president’s plans for war.”
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Scale of Musk's DOGE Conflicts of Interest 'Should Alarm Every American'
"The wealthiest man in the world is working to dismantle the very same federal departments and agencies tasked with overseeing and placing checks on his businesses," says Public Citizen in a new analysis.
May 08, 2025
Elon Musk, the world's richest person and de facto head of the Trump administration's so-called Department of Government Efficiency, "has had a direct business interest in over 70% of the agencies and departments targeted by DOGE since its inception," according to an analysis published Thursday by a leading U.S. consumer advocacy group.
The Public Citizen report, titled Duplicitous Oligarchy Grifting Endlessly, "maps out the entities DOGE has targeted and identifies which ones carry a known conflict of interest for Elon Musk's business entanglements" as the executive office leads the Trump administration's purge of federal agencies.
"The wealthiest man in the world is working to dismantle the very same federal departments and agencies tasked with overseeing and placing checks on his businesses," the report states. "He also now is adjacent to and could potentially access sensitive and potentially proprietary information from his biggest competitors in the various industries that have made him wealthy. He also has personal business interests that could shape what his DOGE project considers ripe for cuts."
Elon Musk's DOGE has spent the last several months dismantling the departments & agencies that regulate HIS businesses. Our report found that Musk has a direct business interest in over 70% of the agencies & departments DOGE targeted. The conflicts of interest are endless.
— Public Citizen (@publiccitizen.bsky.social) May 8, 2025 at 11:46 AM
Elizabeth Beavers, director of Public Citizen's Congress Watch, said in a statement that "it should alarm every American that the wealthiest man in the world has spent the last several months dismantling the same departments and agencies tasked with regulating his businesses."
"Musk's role as the most powerful person in government makes it highly unlikely that any regulator will crack down on his corporations and surely will make agency leaders look more favorably at Musk companies as potential government contractors," Beavers added.
The report considers Musk—who has signaled he will leave DOGE—to have a conflict of interest with a federal agency when one of his companies has received contracts or grants from the department, has an interest in its proprietary data, and is subject to its regulation or enforcement regime.
Public Citizen's analysis highlights interests with federal agencies including:
- Consumer Financial Protection Bureau, which Musk wants to abolish, would be in charge of regulating a proposed payments processing partnership between Visa and Musk's social media platform X;
- Department of Justice, which is investigating electric automaker Tesla and possibly Musk as its CEO;
- Federal Aviation Administration, which regulates Musk's SpaceX;
- Food and Drug Administration, where some of the more than 1,000 fired staffers were reviewing Musk's Nueralink brain implants;
- National Aeronautics and Space Administration, which has awarded SpaceX approximately $15 billion in contracts;
- National Highway Traffic Safety Administration, which regulates Teslas, was hit with a 10% workforce reduction since President Donald Trump took office;
- Securities and Exchange Commission, which has ongoing enforcement actions against Musk, including fines as high as $150 million for failing to file disclosure forms regarding shares of Twitter, which he bought in 2022; and
- United States Agency for International Development, which was investigating whether Russia had improperly gained access to Musk's Starlink satellite internet system.
Musk—whose companies have tens of billions of dollars worth of government contracts—also has conflicts of interest with the departments of Defense, Agriculture, and Energy. SpaceX, for example, holds Pentagon contracts worth around $8 billion, including nearly $6 billion for the National Security Space Launch Phase 3 Lane 2 program.
Critics have laughed off the White House's assertion that Musk would self-police his conflicts of interest by recusing himself when DOGE and his business interests overlap.
"The report's findings make clear that this approach is deeply and incurably flawed—and that urgent action by Congress is required to safeguard the government from Musk's self-dealing and grift," Public Citizen said.
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Alito and Thomas Urged to Recuse From Key Case Over 'Cozy Ties' to Right-Wing Kingpin
"Americans deserve a legal system that isn't influenced by billionaires and special interest backers pushing an agenda at the expense of working families," said a watchdog group leader.
Mar 19, 2025
Ahead of U.S. Supreme Court arguments next week, a watchdog group asserted Wednesday that right-wing Justices Samuel Alito and Clarence Thomas must recuse themselves from a case "whose outcome could have sweeping consequences," citing "significant conflicts of interest" due to their relationships with "conservative kingpin Leonard Leo."
In Federal Communications Commission v. Consumers' Research, a right-wing group is challenging the constitutionality of the FCC's Universal Service Fund program.
Vox's Ian Millhiser reported Wednesday that "if the Supreme Court accepts an argument raised by a federal appeals court, which struck down the federal program, it would bring about one of the biggest judicial power grabs in American history, and hobble the government's ability to do, well, pretty much anything."
In the new report about Alito and Thomas, the watchdog Accountable.US issued a similar warning about the case's potential impacts: "Effectively defunct for almost a century, the nondelegation doctrine prohibits Congress from passing off its legislative power to federal agencies... Reviving the doctrine would cripple agencies' ability to govern consumer safeguards, social security, Medicare, and more during a time when the Trump administration has begun to slash federal agencies."
"Now before the high court, the case presents an obvious conflict of interest for many of the justices who are personally tied to (and in some cases, friends of) the conservative activist Leonard Leo, who is closely connected to Consumers' Research," the analysis explains, pointing to reporting that Leo is the group's "main backer."
While "all six conservatives now sitting on the Supreme Court can credit Leo with helping to shepherd their confirmations," the watchdog's report states, the right-wing legal activist is "close personal friends" with Alito and Thomas.
According to the report:
- Leo has known Justice Thomas since the early 1990s when Leo was clerking in D.C. Since then, Leo has traveled with Thomas and invited him to his personal residence in Maine. The justice is also the godfather to one of Leo's daughters. Justice Thomas' wife, Ginni, has previously called Leo her "hero" and "mentor." Over the past 15 years, Leo and Ginni have worked together on several projects, operationalizing the outside game of conservative dark money and politics.
- Leo has also traveled with Justice Alito, most notably to Alaska on a private fishing trip (which Justice Alito did not disclose at the time). Leo's Federalist Society has also sponsored numerous trips overseas for Alito, some of them attended by Leo himself.
"Americans deserve a legal system that isn't influenced by billionaires and special interest backers pushing an agenda at the expense of working families. Justices Thomas and Alito's cozy ties to Leonard Leo and thereby Consumers' Research fly straight in the face of that, and present a clear conflict of interest impeding their ability to rule impartially on the case," said Accountable.US president Caroline Ciccone in a statement.
"Public trust in the Supreme Court is already at an all-time low because of misguided conduct by justices–this case threatens to degrade it further," Ciccone continued. "The Supreme Court simply cannot be trusted to defend the Constitution if it doesn't adopt an obligatory, enforceable code of conduct that cleans up the impropriety that's existed on the court for years. Thomas and Alito must recuse themselves and restore a semblance of integrity to the highest court."
In addition to releasing the report, Accountable.US and two other groups, Take Back the Court and United for Democracy, argued for Alito and Thomas' recusal in a letter to Chief Justice John Roberts—who on Tuesday publicly condemned right-wing attacks on the federal judiciary.
"The Supreme Court has been engulfed by corruption scandals, many of which centering around the right-wing justices' overly friendly relationships with powerful billionaires and special interests," United for Democracy senior adviser Meagan Hatcher-Mays said Wednesday. "At the same time that Justices Thomas and Alito were accepting lavish gifts and trips from billionaires, they were hearing cases with those same billionaires' legal interests at stake."
"It's impossible for the American public to trust in Supreme Court rulings when this kind of glad-handing is taking place," she added. "The appearance of impropriety is clear in FCC v. Consumers' Research given Leonard Leo's long-time friendship with Justices Thomas and Alito and his financial entanglements with Consumers’ Research. Justices Thomas and Alito must recuse themselves immediately."
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