Trump-affiliated firm distributes substantial stock shares to board members
In the TMTG board meeting on January 28, 2025, Kash Patel, a key nominee for President Donald Trump's administration, was awarded compensation for past services. Despite this, Patel declared that he wouldn't accept the compensation to avoid any conflict of interest whispers. In a questionnaire, he explained to Democratic Sen. Adam Schiff of California, "be it past or future, I have never received compensation for serving as a board member for TMTG."
TMTG, the company behind Truth Social, granted shares worth about $825,000 to its six directors, including Patel, Linda McMahon, Robert Lighthizer, Eric Swider, Kyle Green, and Donald Trump Jr. As part of his nomination process, Patel is under consideration for the position of FBI director, and McMahon is being eyed for the Department of Education secretary.
Many are wary of the president's financial stakes in various businesses, cryptocurrencies, and his social media company, due to the chance of profit from his presidency and manipulation of business partners serving the administration. To avoid conflict of interest, Trump transferred his dominant stake in Trump Media to a revocable trust in December, with his eldest son, Donald Trump Jr., as the sole beneficiary and trustee.
Despite being a common practice for company board members to receive shares, the relationships between high-profile potential Trump government leaders and Trump Media could intensify conflict of interest concerns. The company's financial plans to expand into financial services and acquire cryptocurrencies have been met with curiosity. TMTG plans to launch its fintech brand, Truth.Fi, and introduce investment vehicles focused on American growth, manufacturing, energy, and the "Patriot Economy."
Critics contemplating Patel's confirmation hearing were apprehensive about his past commentary praising the rioters who invaded the US Capitol on January 6, 2021. TMTG also announced this week its aspiration to enter the financial services sector.
Sources:[1] CNN[2] SEC Filings[3] Enrichment Data[4] Senate Questionnaire
Patel's potential role as FBI director raises questions about his investment decisions as a TMTG board member, given his expected involvement in law enforcement. The expansion of TMTG into financial services and cryptocurrencies further intensifies concerns about potential conflicts of interest in business.
