The White House press corps should follow up on new communications director’s financial conflicts
According to Politico, Anthony Scaramucci “still stands to profit” from his ownership stake in a hedge fund he founded in 2005 despite his assertion that his financial portfolio would be “totally cleansed” of conflicts of interest before he assumed a full-time role as communications director at the White House.
During a July 21 press conference in which Scaramucci announced his new role in the Trump administration, he claimed that the position would not be encumbered by conflicts of interest tied to his previous business dealings. However, according to a July 26 report from Politico, Scaramucci “still stands to profit from an ownership stake in his investment firm SkyBridge Capital.” The Office of Government Ethics (OGE) stipulates that federal employees “may be directed to divest” from certain stock or property holdings in order to resolve possible conflicts of interest, but Scaramucci was still listed as SkyBridge’s managing partner as of July 27 and, according to a financial disclosure form published by Politico, Scaramucci still expects to receive significant returns from the upcoming sale of his SkyBridge assets:
According to a July 25 report from Bloomberg citing “people familiar with Scaramucci’s recent thinking,” the incoming communications director “was eager to take another government post” in part so he could benefit from an agreement with the IRS that allows appointees to defer some capital gains taxes when they are forced to liquidate private business relationships in order to assume federal government roles. However, several ethics experts contacted by Bloomberg believe Scaramucci should be disqualified from that tax arrangement because the terms of the sale of his company pre-dated his assumption of a federal government role by several months.
CNBC reported last week that Scaramucci’s ongoing attempt to close the sale of SkyBridge Capital “delayed his appointment” to the Trump administration earlier this year, but he has technically been an employee of the federal government since joining the Export-Import Bank last month while the SkyBridge deal remained unfinished.
The SkyBridge deal itself is increasingly raising questions. Bloomberg reported in January that the Chinese government linked foreign conglomerate lined up to purchase SkyBridge is paying significantly more for the firm than it seems to be worth. On July 24, Business Insider described the purchase agreement for the sale of SkyBridge as “a $180 million conflict of interest hanging over [Scaramucci’s] head” because the sale will eventually have to be approved by Treasury Secretary Steve Mnuchin, with whom Scaramucci will work closely in his new role as a senior adviser in the Trump administration. (Rumors that Scaramucci may be in line to replace Reince Priebus as the president’s chief of staff may further exacerbate the financial conflict.)
Given the Trump team’s extraordinary penchant for misleading the press, reporters should continue digging for proof of Scaramucci’s compliance with ethics regulations routinely flouted by the Trump family and other members of the administration.