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Legal experts say Trump official broke law by saying ‘Buy Tesla’ stock but don’t expect a crackdown

by Web Desk
1 year ago
in Business, Global Business, Top News
Legal experts say Trump official broke law by saying ‘Buy Tesla’ stock but don’t expect a crackdown
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NEW YORK (news agencies) — When a White House adviser in the first Trump administration told TV viewers to “Go buy Ivanka stuff,” top government lawyers sprang into action, telling her she had violated ethics rules and warning her not to do it again.

Government ethics experts have varying opinions on whether the 2017 criticism of Kellyanne Conway went far enough, but many agree such violations now might not even draw an official rebuke.

A week after President Donald Trump turned the White House lawn into a Tesla infomercial for Elon Musk’s cars, a second sales pitch by a U.S. official occurred, this time for Tesla stock.

“It will never be this cheap,” U.S. Commerce Secretary Howard Lutnick said Wednesday. “Buy Tesla.”

Government ethics experts say Lutnick broke a 1989 law prohibiting federal employees from using “public office for private gain,” later detailed to include a ban on ”endorsements.” Although presidents are generally exempt from government ethics rules, most federal employees are not and are often punished for violations, including rebukes like the one Conway got.

As of Friday, no public action had been taken against Lutnick and it was unclear whether he would suffer a similar fate.

“They’re not even thinking of ethics,” said Trump critic and former Republican White House ethics czar Richard Painter of administration officials.

Painter has equally low expectations of that other possible brake to future violations — public opinion: ”I don’t know if people care.”

In his first term, Trump opened his hotel near the Oval Office to foreign ambassadors and lobbyists in what many legal scholars argued was a violation of a constitutional ban against presidents receiving payments or gifts that could distort public policy for private gain. His company launched a new hotel chain called “America Idea” in hopes of cashing in on his celebrity. Trump even once proposed holding a G-7 meeting of world leaders at his then-struggling Doral golf resort.

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