Tag: Ivanka Trump

Ivanka’s Company Won Approval for Chinese Trademarks on the Same Day She Dined with President Xi

Ivanka Trump’s $100 million made-in-Asia clothing line got a boost in early April when the Chinese government granted Donald Trump’s daughter with new trademarks. From the Associated Press:

On April 6, Ivanka Trump’s company won provisional approval from the Chinese government for three new trademarks, giving it monopoly rights to sell Ivanka brand jewelry, bags and spa services in the world’s second-largest economy. That night, the first daughter and her husband, Jared Kushner, sat next to the president of China and his wife for a steak and Dover sole dinner at Mar-a-Lago.

What a coincidence, right? The same day Ivanka Trump is rubbing elbows with the President of China and his wife, the Chinese government makes moves favorable to her company and her wallet. Needless to say, this is running into an ethically murky, swamp-like area:

Using the prestige of government service to build a brand is not illegal. But criminal conflict of interest law prohibits federal officials, like Trump and her husband, from participating in government matters that could impact their own financial interest or that of their spouse. Some argue that the more her business broadens its scope, the more it threatens to encroach on the ability of two trusted advisers to deliver credible counsel to the president on core issues like trade, intellectual property, and the value of the Chinese currency.

“Put the business on hold and stop trying to get trademarks while you’re in government,” advised Richard Painter, who served as chief White House ethics lawyer under George W. Bush.

Hitting the pause button on the pursuit of international trade deals and overseas construction projects seems like the least the Trump family should be doing to separate themselves from their businesses while they oversee the people’s business.

Based on booming sales, don’t expect that to happen anytime soon. Some retail chains have decided not to carry Ivanka Trump’s clothing line, but her company reports online sales are at a record high. After Kellyanne Conway’s unethical sales pitch on Fox & Friends, in which she instructed viewers to buy Ivanka’s clothing online, the company reported a 207 percent increase in online orders in February. The same week President Xi dined with Ivanka Trump at Mar-a-Lago, a huge shipment from China arrived in the U.S.:

The week of the summit, 3.4 tons of Ivanka Trump handbags, wallets and blouses arrived in the U.S. from Hong Kong and Shanghai. U.S. imports of her merchandise grew an estimated 40 percent in the first quarter of this year, according to Panjiva Inc., which maintains and analyzes global shipping records.

Ivanka Trump and Jared Kushner Still Benefiting From Business Empire

Ivanka Trump and Jared Kushner, President Trump’s daughter and son-in-law, will remain the beneficiaries of a sprawling real estate and investment business still worth as much as $740 million, despite their new government responsibilities, according to ethics filings released by the White House Friday night.

Ms. Trump will also maintain a stake in the Trump International Hotel in Washington, D.C. The hotel, just down the street from the White House, has drawn protests from ethics experts who worry that foreign governments or special interests could stay there in order to curry favor with the administration.

It is unclear how Ms. Trump would earn income from that stake. Mr. Kushner’s financial disclosures said that Ms. Trump earned between $1 million and $5 million from the hotel between January 2016 and March 2017, and put the value of her stake at between $5 million and $25 million.

The disclosures were part of a broad, Friday-night document release by the White House that exposed the assets of as many as 180 senior officials to public scrutiny. The reports showed the assets and wealth of senior staff members at the time they entered government service.

Those disclosures included the assets of Gary D. Cohn, the former president of Goldman Sachs who now leads the National Economic Council, Kellyanne Conway, the pollster and counsel to Mr. Trump and Stephen K. Bannon, the chief strategist to the president.

Mr. Bannon disclosed $191,000 in consulting fees he earned from Breitbart News Network, the conservative media organization, $125,333 from Cambridge Analytica, a data firm that worked for the Trump campaign, and $61,539 in salary from the Government Accountability Institute, a conservative nonprofit organization. All three are backed by Robert Mercer and his daughter Rebekah, financiers and major Republican donors.

Mr. Bannon’s most valuable asset was Bannon Strategic Advisors Inc., a privately held consulting firm into which income from his other investments appeared to flow. It was valued at between $5 million and $25 million. He also held bank accounts valued at up to $2.25 million, and rental real estate worth as much as $10.5 million.

Ms. Conway earned at least $842,614 last year, and perhaps slightly more, the filings show. Her assets are valued at between $11 million and at least $44.2 million.

Mr. Cohn is far wealthier, with assets valued between $253 million and $611 million, and income last year as high as $77 million. Another White House official, Reed Cordish, who heads up technology initiatives, accumulated assets as a Maryland developer valued as high as $424 million.

Mr. Trump’s administration is considered the most wealthy in American history, with members of his senior staff and cabinet worth an estimated $12 billion, according to a tally by Bloomberg. The Friday filings will add voluminous detail to that top-line figure. The White house chief of staff, Reince Priebus, for example, earned at least $1.18 million — nearly half of which came from the Republican National Committee, which he formerly led. His assets totaled between $604,008 and at least $1.26 million.

“I think one of the really interesting things that people are going to see today — and I think it’s something that should be celebrated — is that the president has brought a lot of people into this administration, and this White House in particular, who have been very blessed and very successful,” said Sean Spicer, the White House press secretary. The officials “have given up a lot to come into government by setting aside a lot of assets,” he said.

Until January, Mr. Kushner was the chief executive of Kushner Companies, a family-run real estate investment firm with holdings across the country. It is a growing business that has taken part in at least $7 billion of acquisitions over the past decade.

Late Friday, the White House released details of the plan devised by his advisers to avoid conflicts of interest between Mr. Kushner’s government role and the wide-ranging business empire he ran with his father. That business depends on foreign investment from undisclosed sources, as well as billions of dollars in loans from the world’s biggest financial services firms.

Although Mr. Kushner has stepped down from his management positions at the more than 200 entities that operated aspects of the family real estate business, he will remain a beneficiary of a vast majority of the business he ran for the past decade, through a series of trusts that already owned the various real estate companies.

The plan laid out on Friday “is not sufficient,” said Larry Noble, a former general counsel and chief ethics officer for the Federal Election Commission. “While removing himself from the management of the businesses is an important step, he is still financially benefiting from how the businesses do. This presents potential for a conflict of interest. Given his level in the White House and broad portfolio, it’s hard to see how he will recuse himself from everything that may impact his financial interest.”

While the filing discloses Mr. Kushner’s personal lenders, it does not provide information on his business partners or lenders to his projects.

His real estate firm has borrowed money from the likes of Goldman Sachs, the Blackstone Group, Deutsche Bank and the French bank Natixis. It also received loans from Israel’s largest bank, Bank Hapoalim, which is the subject of a United States Justice Department investigation into allegations that it helped wealthy Americans evade taxes using undeclared accounts.

Most recently, his firm’s flagship property at 666 Fifth Avenue in Manhattan was the subject of controversy: Around the time his father-in-law received the Republican nomination last spring, Mr. Kushner’s firm began conversations with a Chinese company with ties to some of the Communist Party’s leading families about a plan to invest billions of dollars in the troubled office tower.

Mr. Kushner’s company and the firm, Anbang Insurance Group, agreed to end the talks on Wednesday after weeks of negative publicity about the deal, criticized as a bailout of the Kushners. The building had already been rescued by a number of prominent firms, including the private equity giant Carlyle Group, and Zara, the Spanish fashion retailer founded and owned by Amancio Ortega, one of the world’s wealthiest men.

Mr. Kushner has divested his stakes in any businesses connected to that property.

The disclosures do not reveal the names of investors and lenders to ventures that Mr. Kushner is retaining a stake in. For example, the form shows Mr. Kushner is retaining a stake in a limited liability corporation that owns a Trump-branded luxury rental high-rise building in Jersey City worth as much as $5 million. That project was financed with tens of millions of dollars from wealthy Chinese investors through a controversial visa-for-sale program called EB-5.

However, the filing does not disclose the names of any of those investors — or partners in any of his other projects.

“We don’t know who the business partners are in many of these investments,” Mr. Noble said, “and those business partners may also have interests that will be affected by how he advises the government. And that’s a concern.”

“He could have foreign business partners who have a real interest in policy, and he may be advising the president on those policies,” Mr. Noble added. “This is a dark area where we just don’t know what’s going on.”

In all, the Kushner company owns more than 20,000 apartments and approximately 14 million square feet of office space.

Previous disclosures by the United States Office of Government Ethics showed that Mr. Kushner had divested his interests in several entities, mostly partnerships connected to a venture capital firm run by his brother, Joshua, called Thrive Capital, that invests in technology firms like Instagram.

He also shed his interests in funds run by the private equity giant Blackstone Group — whose chief executive, Stephen A. Schwarzman, is an economic adviser to Mr. Trump — as well as BlackRock, the world’s largest asset manager.

Over all, he has shed his stakes in 58 businesses.

He is still the sole primary beneficiary of a majority of the trusts that will retain assets, with his children as the secondary beneficiaries.

Mr. Kushner was required to submit some limited financial information for his wife, Ms. Trump, who will continue to receive payments from the Trump Organization as well as her fashion brand.

Ms. Trump, who now serves as an assistant to the president, resigned from her leadership roles at both companies. Instead of performance-based payments, Ms. Trump will receive fixed payments from T International Realty, the family’s luxury brokerage agency, as well as fixed fees from two entities related to real estate projects, the documents show.

Ms. Trump had previously rolled her fashion brand into the Ivanka M. Trump Business Trust, which is overseen by her brother-in-law, Josh Kushner, and sister-in-law, Nicole Meyer. The documents released on Friday valued the trust at more than $50 million.

The brand is largely a licensing operation, meaning that it sells the use of Ms. Trump’s name to partners who manufacture her clothes, shoes and other accessories. Since it is privately held, little is known about the company’s financials, but The New York Times has previously reported that revenues were roughly between $4 million and $6 million in 2013, before the debut of a major partnership.

The disclosure forms released Friday for less senior White House staff members were not reviewed by the federal Office of Government Ethics. Only the White House Counsel’s Office examines their assets to determine if there are potential conflicts, and to decide what steps employees must take to sell assets, resign positions or recuse themselves from decisions.

Already, a complaint has been filed against at least one White House staff member for taking actions that might benefit his own financial interests. Christopher P. Liddell, an assistant to the president and the director of strategic initiatives, had been the chief financial officer of companies including Microsoft, International Paper and General Motors before taking his White House job. Until recently, he also owned stock in General Motors, according to disclosure forms, among more than 750 other companies.

But in late January and early February, according to a complaint filed by Citizens for Responsibility and Ethics in Washington, Mr. Liddell participated in meetings that involved several of the companies in which he still owned a total of about $2 million in stock, including International Paper and General Motors. Mr. Liddell, according to disclosures, sold these stock holdings by mid-February.

“It is Ethics 101 — the most basic thing you are not supposed to do: using your official capacity to benefit your financial interest,” said Norman Eisen, who served as a White House ethics lawyer during the Obama administration and now is a co-chairman of Citizens for Responsibility and Ethics in Washington.

The White House did not respond Friday when asked about the complaint.

(h/t New York Times)

Ivanka Trump’s Expanded White House Role Raises Ethical Issues

After months of attending meetings of world leaders and visiting factories with her father, the role of first daughter Ivanka Trump is officially expanding – creating new ethical issues for an administration that has been heavily criticized over its potential conflicts of interest.

She will not have a specific title, but Trump will have an office in the West Wing, a government-issued phone and computer and security clearance to access classified information, and she will advise her father.

“While there is no modern precedent for an adult child of the president, I will voluntarily follow all of the ethics rules placed on government employees,” she told Politico in a statement.

But following the ethics guidelines should not be voluntary, said Richard Painter, a law professor at the University of Minnesota who served as chief ethics lawyer for George W Bush between 2005 and 2007.

“Given what she’s going to do, I don’t think she has any choice,” he said. “She has a West Wing office, she has equipment, she has a White House email address, she’s going to be doing policy work,” said Painter.

“For purposes of the conflict of interest statute, I believe she is a government employee,” he added.

Ivanka Trump’s lawyer, Jamie Gorelick, argues that since she will earn no salary and not be sworn in, she does not count as a government employee. There is no precedent for adult children whose father is president working in the White House, although two presidents – Andrew Jackson and James Buchanan – had their nieces serve in the role of first lady since Jackson was a widower and Buchanan a bachelor.

Trump has handed control over the day-to-day running of her eponymous clothing business to an executive and its assets are maintained by a trust managed by two of her husband’s siblings.

As part of the trust rules, outlined in the New York Times, Trump can veto any potential business deals for her clothing company that might create a conflict with her political work.

That means, points out Painter, that Trump has to know about any new deal that might put her at risk of breaking the statute, meaning she can be held responsible.

“She’s got accountability on that stuff. She can’t just blame the trustee,” he said.

Trump’s marriage to her father’s senior adviser, the real estate developer Jared Kushner, poses additional potential problems, because both could benefit financially from each other’s businesses.

Painter warned that the pair should avoid official political discussions involved with trade agreements regarding textiles, real estate and even bank deregulation, since that can affect real estate.

That means if the premier of China visits the White House – most of Ivanka Trump’s clothing line is made in China and Hong Kong – it is fine for her to attend the meeting, but she should not mention trade and if the discussion begins to focus on trade, she should excuse herself, says Painter.

The ethics expert noted approvingly that Ivanka Trump engaged Wilmer Cutler Pickering Hale and Dorr, the same legal services used by the secretary of state, Rex Tillerson, former head of ExxonMobil, to handle issues of conflict of interest. Kushner also used the DC-based lawyers to manage his potential conflicts of interest with his family business after taking the role of adviser in the Trump administration.

“It’s a criminal statute, so people better not mess up under it. But I think she’ll do the right thing,” said Painter.

(h/t The Guardian)

The White House Endorsed The President’s Daughter’s Business

Kellyanne Conway used her platform Thursday to urge Americans to “go buy Ivanka’s stuff,” prompting a wave of backlash for potentially violating ethics rules governing the executive branch.

Standing in the White House press briefing room, Conway, a counselor to the president, encouraged Americans to purchase Ivanka Trump’s products, one day after President Donald Trump himself lashed out at the luxury retailer Nordstrom for dropping his daughter’s clothing line.

“It’s a wonderful line. I own some of it,” Conway told “Fox & Friends.” “I fully — I’m going to give a free commercial here. Go buy it today, everybody. You can find it online.”

Conway’s remark appears to violate the executive branch’s ban on staff endorsing products or companies. The regulation, from the Office of Government Ethics, also prohibits using public office for private gain of oneself or friends or relatives.

Under the regulation, OGE’s director can notify the employee of the violation and ask the agency to investigate. The director can recommend discipline, including suspension, loss of pay or termination, but would probably just issue a warning for a first offense.

At his daily briefing, White House press secretary Sean Spicer said Conway had “been counseled on that subject, and that’s it,” declining to further elaborate on whether the White House believed the counselor to the president had crossed a line.

But lawmakers suggested that it did. Reps. Jason Chaffetz (R-Utah) and Elijah Cummings (D-Md.), the chairman and ranking member of the House Oversight and Government Reform Committee, respectively, wrote in a letter to OGE Director Walter Shaub that Conway’s interview “raised extremely serious concerns.”

“As the director of OGE, you have authority to review potential ethics violations and notify the employee’s agency, which in this case is the White House,” they said. “In this case, there is an additional challenge, which is that the President, as the ultimate disciplinary authority for White House employees, has an inherent conflict of interest since Conway’s statements relate to his daughter’s private business.”

They asked that OGE “review Conway’s statement and act promptly on the basis of your findings,” as well as report back to the House panel with a recommendation for disciplinary action, if necessary.

Cummings earlier Thursday had said in a letter to Chaffetz, “This appears to be a textbook violation of government ethics laws and regulations enacted to prevent the abuse of an employee’s government position,” and asked for a committee “review and potential disciplinary action.”

Chaffetz seemed to agree, telling The Associated Press that Conway’s remark was “wrong, wrong, wrong, clearly over the line, unacceptable.”

“It needs to be dealt with,” Chaffetz had said. “There’s no ifs, ands or buts about it.”

A host of liberal, progressive and nonpartisan advocacy groups filed complaints against Conway, including the watchdog group Citizens for Responsibility and Ethics in Washington, which filed its complaint with both OGE and the White House Counsel’s Office.

“Ms. Conway appears to have violated both the letter and the spirit of these rules when she used her position to endorse the accessories and clothing line of Ms. Trump, the daughter of the president,” the CREW complaint says. “Furthermore, we are concerned about what appears to be a pattern developing of the use of official offices, particularly the White House and the Executive Office of the President, to benefit business interests of relatives and supporters of the president; Ms. Conway’s comments appear to be just the latest example of this trend.”

Ordinarily, a violation in the White House would be dealt with by the White House counsel. But it’s not clear how the regulation will be enforced under a president who, based on his own statement Wednesday, seems likely to approve of what Conway said. (The president himself is technically exempt from the regulation, but White House policy has long applied it to him.)

Likely sparked by Conway’s remark, web traffic to the OGE’s website surged Thursday to the point that it became inaccessible for much of the day. On Twitter, the office wrote that “OGE’s website, phone system and email system are receiving an extraordinary volume of contacts from citizens about recent events.” The office later added that it “does not have investigative or enforcement authority.”

An OGE spokesman said the agency was “looking at ways to redirect traffic and add capacity” to make its website accessible again.

Citing declining sales for Ivanka Trump’s label, Nordstrom announced earlier this month that it would no longer carry her line, a move that sparked anger from Donald Trump, who tweeted Wednesday that his daughter had “been treated so unfairly” by the department store.

Ivanka Trump and her husband, Jared Kushner, have been highly visible members of the administration since Donald Trump took office just under three weeks ago. The president’s daughter accompanied him to Dover Air Force Base last week for the return of the remains of a Navy SEAL killed during a raid in Yemen and has advised him on policy issues, including the environment and parental leave.

Conway told Fox News she found it “ironic that you’ve got some executives all over the internet bragging about what they’ve done to [Ivanka] and her line.”

“Yet, they’re using the most prominent woman in Donald Trump’s — you know, most prominent — she’s his daughter, and they’re using her, who has been a champion for women empowerment, women in the workplace, to get to him,” she continued. “I think people could see through that. Go buy Ivanka’s stuff is what I would tell you. I hate shopping. I’m going to go get some myself today.”

While Nordstrom claimed that the decision to drop Ivanka Trump’s line of clothing and shoes was based solely on business, at least some of the decline in sales of her products could be attributed to the #GrabYourWallet campaign urging consumers to boycott Trump products.

Nordstrom also hasn’t shied away from voicing opposition to Trump’s policies, releasing a statement in support of immigrants in the wake of the president’s executive order temporarily banning individuals from certain Muslim-majority nations from entering the U.S. in the name of national security. The retailer announced its decision to drop Ivanka Trump’s line three days after releasing that statement.

On Fox News, Conway called Ivanka Trump a “very successful businesswoman” and an “incredibly confident, creative, talented woman” and indicated that should be welcomed into a role at the White House to work on women’s empowerment issues, if she so chooses.

“Obviously, she’s stepped away from it now, but in the past she’s helped to run her family’s real estate empire, and on the side she developed another fully, unbelievably, entrepreneurial, wildly successful business that bears her name,” Conway added. “And I think she’s gone from 800 stores to 1,000 stores or 1,000 places where you can buy — you can certainly buy her goods online. She’s just at a very good place.”

(h/t Politico)

Trump Blasts Nordstrom for Dropping Ivanka’s Clothing Line

President Donald Trump on Wednesday blasted luxury department store Nordstrom for dropping his daughter Ivanka Trump’s label, a move that drew immediate criticism for further blurring the line between Trump’s administration and his family’s businesses.

“My daughter Ivanka has been treated so unfairly by @Nordstrom. She is a great person — always pushing me to do the right thing! Terrible!” Trump tweeted Wednesday morning.

Nordstrom had announced on Feb. 3 that it would stop carrying Ivanka Trump’s label due to its performance.

“We’ve said all along we make buying decisions based on performance,” Nordstrom said in a statement to The Associated Press. “We’ve got thousands of brands— more than 2,000 offered on the site alone. Reviewing their merit and making edits is part of the regular rhythm of our business.”

While Nordstrom contends the decision was solely a business one, the publicly traded company has delved into the Trump administration’s controversial moves.

Nordstrom had issued an internal statement in support of immigrants following Trump’s executive order temporarily barring immigrants from seven Muslim-majority countries just three days before dropping Ivanka Trump’s line.

The move also comes amid a broader #GrabYourWallet hashtag calling for a boycott of all Trump products.

Some Trump critics immediately pounced on Trump’s tweet, holding it up as further evidence that Trump is not respecting what should be a firewall between the White House and his sprawling business empire.

Norm Eisen, a former Obama administration ethics czar, called the move “outrageous” on Twitter and said Nordstrom should consider suing under the California Unfair Competition Law, which forbids “any unfair” business act.

Sen. Bob Casey (D-Penn.) also replied to Trump’s tweet, by “CC”ing the Office of Government Ethics.

Casey’s press secretary Jacklin Rhoads said in an emailed statement that the senator “feels it is unethical and inappropriate for the President to lash out at a private company for refusing to enrich his family.”

The Office of Government Ethics and Nordstrom did not immediately return calls for comment.

Executive branch employees are forbidden from using their positions to promote any corporation, although the president is technically exempt. There does not appear to be an applicable rule that addresses the president impugning a company.

Trump also retweeted his tweet on his official @POTUS account, which reaches 15.1 million followers. By comparison, Trump’s @realDonaldTrump account reaches 24.2 million followers.

The president had pledged to fully step away from his private businesses, but he has also said he will not sell the companies nor will he place his assets in a blind trust while serving as president.

Instead, Trump has said his company will not enter into new foreign deals and will appoint an ethics adviser who must approve any new domestic deals in writing.

The president has also proven his desire and ability to influence companies through Twitter. He has regularly blasted corporations including Carrier, General Motors and Toyota, accusing them of moving jobs and production overseas. Lockheed and Boeing have also drawn his ire over the price tag associated with their defense contracts.

On Wednesday, Nordstrom’s stock took a brief fall following Trump’s tweet, from $42.69 per share at 10:50 a.m. to $42.50 at 10:55 a.m. However, it has since risen to $43.14 as of 12:30 p.m.

(h/t Politico)

Ivanka Trump to Get White House Office

Ivanka Trump will reportedly get an office in the space typically reserved for the first lady, according to CNN.

CNN’s Lisa Miranda tweeted the news on Wednesday, citing a report by CNN’s Sara Murray, who covered President-elect Donald Trump on the campaign trail.

Instead of moving into the White House in January, the incoming first lady, Melania Trump, will continue to live in New York City with her son Barron as he finishes the school year.

Some have speculated that Ivanka, one of the president-elect’s daughters, will fill a role similar to first lady’s during her father’s presidency. The New York Times reported this month that she may be one of the most powerful first daughters in history.

In early December, she met with former Vice President Al Gore, a prominent climate change activist, at Trump Tower in New York City. The first daughter reportedly plans to make global warming one of her main issues.

Trump has said he’d “love” to have Ivanka and her husband, Jared Kushner, involved in his administration.

“If you look at Ivanka – she’s so strongly, as you know, into the women’s issues and childcare, … nobody could do better than her,” Trump said earlier this month.

He announced in two tweets earlier this week that his adult sons, Donald Jr. and Eric, “plus executives” will take over his businesses before the inauguration. But he canceled a press conference scheduled for Thursday where he would have discussed details of his plan for transitioning his businesses.

The tweets did not include information on Ivanka’s relationship to his businesses moving forward.

(h/t The Hill)

Donald Trump Brings His “Blind Trust” to Meeting with Tech Executives

Every day is “take your kids to work day” when you’re Donald Trump — at least it’s starting to seem that way. The president-elect met Wednesday with top technology executives in Trump Tower in New York City, and it turned out that his adult children Ivanka, Donald Jr., and Eric Trump had come along for the ride:

Also in the room were Apple CEO Tim Cook, Amazon’s Jeff Bezos, Tesla’s Elon Musk, Sheryl Sandberg of Facebook, Larry Page and Eric E. Schmidt of Google parent Alphabet, and Microsoft CEO Satya Nadella, along with several other tech leaders.

Notably, Trump has vowed to put his business in a “blind trust” run by Donald Jr. and Eric. Already the “blindness” of such a trust is suspect as a true blind trust is run by an independent trustee — and typically, not trustees that accompany the U.S. president to major conversations about the tech industry.

 

Ivanka Trump’s Presence at Meeting With Japan’s Leader Raises Blind Trust Questions

President-elect Donald Trump has repeatedly said that there would be no conflicts of interest during his administration because his vast business empire would be in a “blind trust.” But White House ethics lawyers in both parties have criticized that, noting that having his children run the company means it would be neither blind nor a trust.

The very first meeting that the President-elect held with a world leader, Japanese Prime Minister Shinzo Abe, is prompting further criticism—even alarm. According to photographs taken at Trump Tower in New York City and published this week, the session was attended by Ivanka Trump, who has no government security clearance and is an executive at the Trump Organization.

“This is not the way we behave in the world’s leading constitutional democracy,” says Norman Eisen, special counsel and ethics adviser to President Barack Obama between 2009 and 2011. “It’s like something out of a tin-pot oligarchy.”

Members of the press were also barred from the meeting, adding to building criticism that a President Trump will not honor White House traditions of transparency. Ivanka Trump’s presence apparently only became public because the Japanese government released photos; it is not clear whether she was present for the entire meeting.

Meanwhile the New York Times reports that Jared Kushner, Trump’s trusted son-in-law, consulted a lawyer to find out how he could join Trump’s forthcoming administration without running afoul of federal laws prohibiting nepotism. Kushner was also present at the Abe meeting, according to another photo published by Reuters and the Japanese government. He too lacks government security clearance.

In an interview with Fortune, Eisen says Ivanka Trump and Kushner’s apparent presence at Trump’s first face-to-face meeting with the leader of one of our key allies was “shocking” and unprecedented. “If you’ve got one member of the power couple—Jared Kushner, whispering in the President[-elect]’s ear—and if you’ve got the other, the wife and daughter, who is running businesses, it merges the Trump Organization and the United States into one huge conglomerate managed by the Trumps for their own interests,” he says.

He adds that the fear is that their involvement will turn “our intelligence community into a management consulting firm for the Trump family business. That can’t be right. Ivanka must go, and Kushner can’t stay.”

Eisen and Richard Painter, White House ethics adviser to President George W. Bush between 2005 and 2007, on Tuesday wrote an op-ed in the Washington Post urging Trump to put his “conflict-generating assets in a true blind trust run by an independent trustee.”

Unlike most other federal employees, the President of the United States isn’t bound by the federal conflict of interest law. But Eisen tells Fortune that several lawyers, including those who are part of the Republican party, are “worried about this unprecedented blurring of lines” and President-elect Trump should “expect massive litigation if he proceeds on this collision course.”

(h/t Fortune)

Trump Team Seeks Top-Secret Security Clearances for Trump’s Children

President-elect Donald Trump is potentially seeking top secret security clearances for his children, sources tell CBS News.

The Trump team has asked the White House to explore the possibility of getting his children the top secret security clearances. Logistically, the children would need to be designated by the current White House as national security advisers to their father to receive top secret clearances. However, once Mr. Trump becomes president, he would be able to put in the request himself.

His children would need to fill out the security questionnaire (SF-86) and go through the requisite background checks.

While nepotism rules prevent the president-elect from hiring his kids to work in the White House, they do not need to be government officials to receive top secret security clearances.

The issue raises another layer of questions about the unique role his children are playing and conflicts of interest with their running his network of businesses.

Mr. Trump’s children Ivanka, Eric and Donald Jr., as well as son-in-law Jared Kushner, were named to the president-elect’s transition team late last week. Though they were an integral part of his campaign team, Mr. Trump’s children have all stated that they will not hold formal roles in the government.

“No,” Ivanka told CBS News’ Lesley Stahl when asked during a “60 Minutes” interview if she would join the administration. “I’m going to be a daughter. But I’ve– I’ve said throughout the campaign that I am very passionate about certain issues. And that I want to fight for them.”

(h/t CBS News)

Update

USA Today reports that, “it wasn’t something [Trump] was expecting right now.”

Reality

The fact that his children, who will now be running his business, may have security clearance, as well as a direct line of communication with the President of the United States, makes the concept of a blind trust completely useless. The Trump family will be able to alter government policy to better fit their business ventures or be aware of information months before the rest of the public is notified, allowing an unfair advantage to raise their profits among their competitors.

As Glenn Greenwald put it, “This is not a blind trust in any manner, no matter who calls it that. Stop using this term. It’s false.”

Trump Kids to Run Business While on Transition Team

The Trump Organization said on Friday it was vetting new business structures aimed at transferring management control to three of President-elect Donald Trump’s children and a team of executives.

The Trump Organization said in a statement it was planning to transfer control of the portfolio of businesses to Donald Trump Jr, Ivanka Trump, Eric Trump and other executives.

Earlier on Friday, the three Trump children – the oldest of Trump’s five children – were also named as members of Trump’s Presidential Transition Team Executive Committee.

“This is a top priority at the organization and the structure that is ultimately selected will comply with all applicable rules and regulations,” a spokesperson for the Trump Organization said in a statement.

Federal conflict-of-interest law does not apply to the president, but most White House occupants in the last few decades have voluntarily placed their assets in a blind trust to avoid any suggestion of impropriety.

Experts in government ethics said that giving over control to Trump’s children would do virtually nothing to prevent potential conflicts of interest, since there’s usually no daylight between one’s personal interest and the interest of one’s immediate family members.

“It doesn’t meet any of the standards of a blind trust if the kids are running the company,” said Kenneth Gross, a Washington lawyer who specializes in advising political clients on compliance and ethics.

Gross noted that the official transition team roles that Ivanka Trump, Donald Trump Jr and Eric Trump now have would appear to complicate matters further.

“If they’re going to be involved in government functions – and they’re starting down that road – and running the business, that’s going to make it very difficult to separate the government and business functions and deal with the conflicts of interest,” Gross said.

All three children already have roles in the Trump Organization, according to the company’s website. Ivanka Trump is executive vice president of development and acquisitions, charged with domestic and global expansion of the company’s real estate interests.

Donald Trump Jr is an executive vice president, and works to expand the company’s real estate, retail, commercial, hotel and golf interests nationally and internationally. Eric Trump is executive vice president of development and acquisitions, responsible for new project acquisition, development and construction globally.

Typically, a blind trust involves turning over assets to an independent financial manager with no prior relationship to the owner. In addition, a blind trust derives its name from the idea that the owner would no longer know what assets are sold or bought. For instance, someone with extensive stock holdings would have no way of knowing which companies’ shares he or she still owned in a blind trust.

Trump’s portfolio includes interests in hundreds of limited liability companies, many overseas, as well as numerous real estate properties both domestic and foreign.

Short of selling the entire Trump empire, experts said, he will find it difficult to create a trust sufficiently “blind” to avoid the possibility of any conflicts.

(h/t Huffington Post)

Reality

This is already showing signs of a conflict of interest with Trump family using their position to help enrich their organization with insider information. This is the type of corruption Trump ran against, but only took a few days after being elected to engage in.

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