Epic Corruption in Plain Sight

Congress and the courts must stop politicians from profiteering.

On Monday, Donald Trump dropped his sham lawsuit against the federal government. In exchange, the Justice Department under his control will establish a $1.8 billion fund for “victims of lawfare,” as Acting Attorney General Todd Blanche put it. This will be a slush fund for Trump’s allies — presumably January 6 insurrectionists and others already rewarded with a pardon.

There is a zone of lawlessness around the Oval Office, erected by the Supreme Court when it granted current and former presidents effective immunity from prosecution if their crimes involved “official acts.” Loot the taxpayers, misuse government power for graft, and you’re off the hook.

Last week, the president filed a report with the Office of Government Ethics detailing the stock trades he made this year. It is a novelistic tale of profiteering, recognizable as insider trading in every way except, perhaps, under the law.

Former U.S. Pardon Attorney Liz Oyer offers a useful guide.

In recent months, as Paramount and Netflix vied to buy Warner Brothers, Trump bought stock in all three companies. Now the Justice Department is considering whether to approve Paramount’s purchase of Warner Brothers.

As CNBC reported, Trump “scooped up shares” in the data firm Palantir. Soon after, he abruptly praised the firm. “Palantir Technologies (PLTR) has proven to have great war fighting capabilities and equipment,” Trump posted, even highlighting its ticker name. “Just ask our enemies!!!” All this while Palantir was winning big federal contracts.

He invested in Oracle while brokering its deal to buy TikTok.

Just this week, he paraded off Air Force One in China, flanked by the CEOs of Nvidia and Boeing. Trump bought millions of dollars of Boeing stock before the trip, which led to the sale of 200 Boeing airplanes to the Chinese government. Among his biggest purchases has been Nvidia stock, which has seen steep increases after the U.S. government cleared 10 Chinese companies to purchase its advanced chips, in a big reversal from earlier national security concerns.

Altogether, Oyer writes, “You’ll find it hard to avoid the conclusion that, to Donald Trump, governing is synonymous with profiteering.”

This president is constrained by the weakest legal rules in history.

Start with that immunity ruling, Trump v. United States. Before that, presidents knew they could be criminally prosecuted if they looted the government. Chief Justice John Roberts’s ruling all but stops any bribery prosecution before it starts, by preventing any inquiry into the president’s motivations, even when the act looks and smells like a bribe. Justice Amy Coney Barrett noted that the ruling would “hamstring the prosecution” in a case such as bribery. (Having critiqued the misguided majority, Barrett then mystifyingly voted with it.)

Insider trading laws are weak, in any case. The Securities Exchange Act of 1934 prohibits using nonpublic information to guide stock trading, but its application to elected officials remains murky. In 2012, Congress passed the Stock Act to prevent insider trading among members of Congress, but the president and vice president remain exempt.

It’s epic corruption in plain sight. History shows that after scandal comes reform — often, but not always.

In January, the Brennan Center published Nine Solutions for Political Corruption. In it, we call for a law to require the president to divest from all stocks and other assets that could generate a conflict of interest. That was the norm, and now it must be a law. Ethics rules should cover presidents and vice presidents too.

And we call for a constitutional amendment to end the unilateral power of a president to issue corrupt pardons.

What about that Trump v. United States ruling? In the past, after the Supreme Court has erred so gravely, we’ve changed the Constitution. The 14th Amendment, for example, undid the Dred Scott decision. Another amendment is needed to clean up the immunity mess.

The sturdiest protection against corruption would be fierce anger from fleeced taxpayers. A few months ago, when asked about his conflicts of interest, Trump said, “I found out that nobody cared, and I’m allowed to.”

It turns out that Americans do care. In January, a YouGov poll found that “large shares of both Democrats and Republicans think their party focuses too little on corruption.”

Let’s make this a major issue for the campaign trail and press politicians from both parties to provide solutions, not just soundbites. Or else, as Oyer wrote, we risk having future presidents who “loot and pillage our country without a shadow of shame.”

IMAGE CREDIT: Mandel Ngan/Getty