Federal officials broke ethics rules when one of them held $1 million in Amazon stock while drafting tech policies
Government officials broke ethical rules by withholding inventory they were told to dispose of due to conflicts of interest.
An investigation found that over 2,600 federal officials hold stocks in companies across multiple agencies that could be viewed as a conflict of interest with their jobs in Washington.
There are said to be fines and jail terms for government officials for violating stock trading rules, but rarely does anyone endure the maximum fine of $50,000 or five years in prison.
Officials often avoid conflicts of interest by obtaining exemptions because the government does not deem the conflict important enough to keep them from doing their jobs.
Mark Wu, a Harvard professor and economist, was Senior Advisor to the US Trade Representative under Joe Biden in 2021 and worked on policy with Big Tech.
According to the Wall Street Journal, he held more than $1 million in Amazon stock at the time, prompting his bosses to ask him to either sell the shares or “retire from digital commerce woes.”
Instead of making that decision, Wu eventually resigned, citing family issues. He never dumped any of his Amazon stock.
Retired Army General John Abizaid was appointed US Ambassador to Saudi Arabia in November 2018 under former President Donald Trump.
At the time, he owned shares in Palantir, a data mining company that works with the federal government and was exploring an IPO in 2019. Abizaid was a consultant to the company from 2008 to 2014.
Abizaid signed an ethics agreement saying he would get rid of his shares within 180 days of his confirmation, which took place in April 2019. However, a financial disclosure in April 2020 showed that he still hadn’t sold her while still serving as ambassador.
Mark Wu, a Harvard professor and economist, was Senior Advisor to the US Trade Representative under Joe Biden in 2021
He said in a statement that he had “attempted in various ways to sell the shares privately in a manner that would satisfy Palantir, State and myself and was unable to do so due to company restrictions.”
Ethics officials concurred as long as Abizaid abstained from any government business affecting Palantir. The ex-ambassador claims there were no such conflicts during his tenure.
Palantir eventually went public in September 2020, and the next month Abizaid sold “three pieces” of stock at double the price it should have sold for.
He made between $1 million and $2 million and continued to hold between $5 million and $25 million in Palantir stock in 2020.
Abizaid said: “Once I realized I didn’t need to divest myself, I proceeded with all sales in my portfolio as I normally would. I have reported the sales as required and the sales I have made have been in accordance with Palantir policies and Department of State policies.’
Retired Army General John Abizaid was appointed US Ambassador to Saudi Arabia in November 2018 under former President Donald Trump
At the time, he owned shares in Palantir, a data mining company that works with the federal government and was exploring an IPO in 2019. Abizaid was a consultant to the company from 2008 to 2014
At the same US trade mission where Wu worked, consultant Michael Nemelka owned about $2.6 million in a company called Sanuwave Health, which “uses energy waves to heal injuries.”
Watchdogs said this was a conflict because Nemelka was in charge of intellectual property trade policy and was told he was forbidden from working with the medical or pharmaceutical industry, but still recommended selling his shares.
Nemelka was reluctant to do so, despite selling other shares, and a senior official said in an email that “he views this investment as his family’s future financial nest egg.”
He tried to back down from conflicts of interest, but ethics officials were still cautious, according to emails uncovered by the Wall Street Journal.
Eventually he was allowed to keep the shares with a warning not to become involved in matters related to the company. Nemelka said the stock holdings “never interfered with my ability to perform my duties.”
At the same US trade mission where Wu worked, consultant Michael Nemelka owned about $2.6 million in a company called Sanuwave Health, which “uses energy waves to heal injuries.”
Andrew Maloney received a high-profile position at the Treasury Department in Washington in 2017. He has been deemed by ethics officials as a multiple stockholder with conflicts of interest
Andrew Maloney received a high-profile position at the Treasury Department in Washington in 2017. He has been deemed by ethics officials as a multiple stockholder with conflicts of interest.
He was told to sell and dumped a few shares, including between $250,000 and $500,000 in Hess, $50,000 to $100,000 in Cigna, and $15,000 to $50,000 in Bank of America.
However, the federal government allowed him to hold between $550,000 and $1.25 million worth of stock in Amazon, Apple, and Meta.
Maloney was hired as an advocate for President Trump’s economic agenda, which included tax cuts for both people and corporate interests.
Amazon, Apple and Meta (then known as Facebook) shares are up 74, 21 and 16 percent, respectively, from his confirmation until his departure from the federal government.
Maloney said he acted under the law while on duty in Washington.
https://www.dailymail.co.uk/news/article-11341821/Federal-officials-broke-ethics-rules-one-holding-1m-Amazon-stock-crafting-tech-policy.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Federal officials broke ethics rules when one of them held $1 million in Amazon stock while drafting tech policies
