Latest news with #politicaldonations
Sky News
2 days ago
- Business
- Sky News
Reform UK to accept crypto donations, Farage says
Reform UK will start accepting donations in cryptocurrency, making it the "first" British party to do so, its leader Nigel Farage has said - but the move has sparked concern from some experts. The announcement came as Mr Farage spoke at a Bitcoin Conference in Las Vegas on Thursday, and as his party pledged to cut taxes on cryptocurrencies if elected. "My message to the British public, my message particularly to young people, is help us to help you bring our country properly into the 21st century," he said. "Let's recognise that crypto, Bitcoin, digital assets, are here to stay." The MP for Clacton also introduced a 'Cryptoassets and Digital Finance Bill' - which he described as a "bold, post-Brexit roadmap" to make London a "world-leading trading centre". However, experts have warned against the idea of allowing political donations to be made via cryptocurrency. Financial crime expert Steve Goodrich told Politico's Playbook: "The anonymity offered by digital currencies makes it nearly impossible for political parties to have confidence in their donors' identities. He added that the growth of crypto threatens a "widening loophole that could allow unlimited anonymous donations to flow into British politics." Seven million Britons now own cryptocurrencies, and Nigel Farage is trying to court their votes Donald Trump, who called Bitcoin a "scam" in 2021, changed course before the presidential election last year - and ended up receiving millions in donations from deep-pocketed investors. Mr Farage appears to be following the same playbook, and has pledged to create a "sovereign Bitcoin reserve fund" so taxpayers can benefit if this cryptocurrency's price rises. The Trump administration unveiled a similar policy in March - meaning Bitcoin seized from criminals would no longer be auctioned off, but held in case its value grows. Data from Arkham Intelligence shows the UK currently holds £4.7bn worth of Bitcoin - but Labour has ruled out treating it as an investment, arguing that this asset is too volatile. The government is yet to sell off these crypto holdings, despite the fact that it could comfortably pay for a U-turn on winter fuel payments - with plenty of change left over. Mr Farage announced his policy at the Bitcoin conference in Las Vegas. Pro-Bitcoin policies are unlikely to be front of mind for many British voters, who are still grappling with a cost-of-living crisis. But Reform's stance marks another point of difference from both Labour and the Conservatives, who are yet to take a definitive stance on crypto. It came as Reform chairman Zia Yusuf told reporters on Friday that if the party were elected to government, the party would allow people to pay their taxes through Bitcoin. He also said Reform would reduce capital gains tax on assets like Bitcoin to 10% - with the hope of generating up to £1bn for the Treasury in 10 years. Currently, cryptocurrencies incur a capital gains tax of either 18% or 24%. He added that the cut may encourage additional use of the currency, and encourage people to move their assets to Britain. Cryptocurrencies - like Bitcoin - have become increasingly popular over recent years, with research suggesting that around 12% of adults in the UK currently, or once, owned cryptoassets - compared to 4% in 2021. Last month, the chancellor announced plans to regulate cryptoassets in order to make Britain a "world leader".
Arab News
2 days ago
- Business
- Arab News
Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations
WASHINGTON: Elon Musk arrived in the nation's capital with the chain saw-wielding swagger of a tech titan who had never met a problem he couldn't solve with lots of money, long hours or a well-calibrated algorithm. President Donald Trump was delighted to have the world's richest person — and a top campaign donor — working in his administration, talking about how he was 'a smart guy' who 'really cares for our country.' Musk was suddenly everywhere — holding forth in Cabinet meetings while wearing a 'tech support' shirt and black MAGA hat, hoisting his young son on his shoulders in the Oval Office, flying aboard Air Force One, sleeping in the White House. Democrats described the billionaire entrepreneur as Trump's 'co-president,' and senior officials bristled at his imperial approach to overhauling the federal government. After establishing Tesla as a premier electric automaker, building rockets at SpaceX and reshaping the social media landscape by buying Twitter, Musk was confident that he could bend Washington to his vision. Now that's over. Musk said this week that he's leaving his job as a senior adviser, an announcement that came after he revealed his plan to curtail political donations and he criticized the centerpiece of Trump's legislative agenda. It's a quiet exit after a turbulent entrance, and he's trailed by upheaval and unmet expectations. Thousands of people were indiscriminately laid off or pushed out — hundreds of whom had to be rehired — and some federal agencies were eviscerated. But no one has been prosecuted for the fraud that Musk and Trump said was widespread within the government. Musk reduced his target for cutting spending from $2 trillion to $1 trillion to $150 billion, and even that goal may not be reached. In Silicon Valley, where Musk got his start as a founder of PayPal, his kind of promises are known as vaporware — a product that sounds extraordinary yet never gets shipped to market. Trump said Thursday on his Truth Social platform that he would hold a press conference Friday with Musk. 'This will be his last day, but not really, because he will, always, be with us, helping all the way,' Trump added. 'Elon is terrific!' Musk's position was always designed to be temporary, and he had previously announced his intention to dedicate more of his time to his companies. But he also told reporters last month that he was willing to work part-time for Trump 'indefinitely, as long as the president wants me to do it.' Musk got a seat at Trump's table and put $250 million behind his campaign It was clear that Musk wouldn't be the typical kind of presidential adviser around the time that he showed the world his belly button. Racing on stage at a campaign rally one month before the election, he jumped for joy next to Trump, his T-shirt rising to expose his midriff. Musk had already sold Trump on his idea for a Department of Government Efficiency while also putting at least $250 million behind his candidacy. The plan called for a task force to hunt for waste, fraud and abuse, a timeworn idea with a new twist. Instead of putting together a blue-ribbon panel of government experts, Trump would give his top donor a desk in the White House and what appeared to be carte blanche to make changes. Musk deployed software engineers who burrowed into sensitive databases, troubling career officials who sometimes chose to resign rather than go along. Trump brushed off concerns about Musk's lack of experience in public service or conflicts of interest from his billions of dollars in federal contracts. Their unlikely partnership had the potential for a generational impact on American politics and government. While Musk dictated orders for government departments from his perch in the White House, he was poised to use his wealth to enforce loyalty to the president. His language was that of catastrophism. Excessive spending was a crisis that could only be solved by drastic measures, Musk claimed, and 'if we don't do this, America will go bankrupt.' But even though he talked about his work in existential terms, he treated the White House like a playground. He brought his children to a meeting with the Indian prime minister. He let the president turn the driveway into a makeshift Tesla showroom to help boost sales. He installed an oversized screen in his office that he occasionally used to play video games. Sometimes, Trump invited Musk to sleep over in the Lincoln Bedroom. 'We'll be on Air Force One, Marine One, and he'll be like, 'do you want to stay over?'' Musk told reporters. The president made sure he got some caramel ice cream from the kitchen. 'This stuff's amazing,' Musk said. 'I ate a whole tub of it.' Looking back on his experience in government, he described it as a lark. 'It is funny that we've got DOGE,' an acronym that references an online meme featuring a surprised-looking dog from Japan. 'How did we get here?' Musk did not give federal workers the benefit of the doubt From the beginning, Musk treated federal workers with contempt. At best, they were inefficient; at worst, they were committing fraud. His team offered them a 'fork in the road,' meaning they could get paid to quit. Probationary employees, generally people new on the job without full civil service protection, were shown the door. Anyone who stayed faced escalating demands, such as what became known as the 'five things' emails. Musk wanted every government employee to submit a list of five things they accomplished in the previous week, and he claimed that 'failure to respond will be taken as a resignation.' Some administration officials curtailed the plan, concerned that it could jeopardize security in more sensitive areas of the government, and it eventually faded, an early sign of Musk's struggle to get traction. But in the meantime, he continued issuing orders like thunderbolts. One day in February, Musk posted 'CFPB RIP,' plus an emoji of a tombstone. The headquarters of the Consumer Financial Protection Bureau, created after the Great Recession to protect Americans from fraud and deceptive practices, was shut down and employees were ordered to stop working. Musk had already started gutting the US Agency for International Development, a pillar of the country's foreign policy establishment and the world's largest provider of humanitarian assistance. 'Spent the weekend feeding USAID into a wood chipper,' he bragged. Thousands of contacts were cut off, pleasing conservatives who disliked the agency's progressive initiatives on climate change and gay rights. Musk rejected concerns about the loss of a crucial lifeline for impoverished people around the globe, saying, 'no one has died.' However, children who once relied on American assistance perished from malnutrition, and the death toll is expected to increase. The lawsuits began piling up. Sometimes workers got their jobs back, only to lose them again. The Food and Drug Administration, which is responsible for ensuring the safety of everything from baby formula to biotech drugs, planned to lay off 3,500 employees. But again and again, the agency was forced to rehire people who were initially deemed expendable, including laboratory scientists, travel bookers and document specialists. Commissioner Marty Makary, who started his job after many of the cuts took place, told attendees at a recent conference that 'it was hard and my job is to make sure we can heal from that.' Only 1,900 layoffs took place, but another 1,200 staffers took buyouts or early retirement. Experts fear the agency has lost much of its institutional knowledge and expertise in areas like vaccines, tobacco and food. There are also concerns about safety on public lands. The National Park Service has been bleeding staff, leaving fewer people to maintain trails, clean restrooms and guide visitors. More cuts at the Forest Service could undermine efforts to prevent and fight wildfires. The Environmental Protection Agency faces a broad overhaul, such as gutting the Office of Research and Development, which was responsible for improving air pollution monitoring and discovering harmful chemicals in drinking water. Not even low-profile organizations were exempt. Trump ordered the downsizing of the US Institute of Peace, a nonprofit think tank created by Congress, and Musk's team showed up to carry out his plan. The organizations' leaders were deposed, then reinstated after a court battle. Musk made little headway at the top sources of federal spending The bulk of federal spending goes to health care programs like Medicaid and Medicare, plus Social Security and the military. Unfortunately for Musk, all of those areas are politically sensitive and generally require congressional approval to make changes. Thousands of civilian workers were pushed out at the Pentagon, and Defense Secretary Pete Hegseth is reducing the ranks of top generals and looking to consolidate various commands. A plan to downsize an office for testing and evaluating new weapons systems could save $300 million per year. Hegseth recently asked employees to submit one idea per week for cutting waste. However, the Pentagon budget would increase by $150 billion, for a total of more than $900 billion, under Trump's spending proposal working its way through Congress. The money includes $25 billion to lay the groundwork for Trump's 'golden dome' missile defense program and $34 billion to expand the naval fleet with more shipbuilding. Another $45 million is expected to be spent on a military parade on June 14, which is the 250th anniversary of the Army's founding and Trump's 79th birthday. Musk also faced blowback for targeting Social Security, which provides monthly benefits to retirees and some children. He suggested that the popular program was 'a Ponzi scheme' and the government could save between $500 billion and $700 billion by tackling waste and fraud. However, his estimates were inflated. Social Security's inspector general said there was only $71.8 billion in improper payments over eight years. Nor was there any evidence that millions of dead people were receiving benefits. Changes to Social Security phone services, pitched as a way to eliminate opportunities for fraud, were walked back after an outcry from lawmakers and beneficiaries. But the agency could still shed 7,000 workers while closing some of its offices. Musk's popularity cratered even though Americans often agreed with his premise that the federal government is bloated and wasteful, according to polling from The Associated Press-NORC Center for Public Affairs Research. Just 33 percent of US adults had a favorable view of Musk in April, down from 41 percent in December. In addition, 65 percent said Musk had too much influence over the federal government. Musk talked of staggering savings but delivered modest results During a campaign rally in October, Musk said he could find 'at least $2 trillion' in spending cuts. In January, before Trump was inaugurated, he revised by saying, 'if we try for $2 trillion, we've got a good shot at getting one.' But in April, at a Cabinet meeting, Musk provided a different target. He was 'excited to announce' that they could reach $150 billion in savings during the current fiscal year. Whether that figure proves to be accurate is difficult to measure, especially because DOGE routinely inflated or mischaracterized its work. But it falls short of President Bill Clinton's initiative three decades ago, which resulted in $136 billion in savings — the equivalent of more than $240 billion today. Elaine Kamarck, a key figure in the Clinton administration, said they focused on making the government more responsive and updating antiquated internal procedures. The work took years. 'We went about it methodically, department by department,' she said. The effort also reduced the federal workforce by more than 400,000 employees. However, Musk did little to seek insight from people who knew the inner workings of government. 'They made some changes without really knowing what they were doing,' said Alex Nowrasteh, vice president for economic and social policy studies for the libertarian think tank Cato Institute. He said there were 'a lot of unforced errors.' In the end, Nowrasteh said, 'they set themselves up for failure.'
The Independent
3 days ago
- Business
- The Independent
Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations
Elon Musk arrived in the nation's capital with the chain saw-wielding swagger of a tech titan who had never met a problem he couldn't solve with lots of money, long hours or a well-calibrated algorithm. President Donald Trump was delighted to have the world's richest person — and a top campaign donor — working in his administration, talking about how he was 'a smart guy' who 'really cares for our country.' Musk was suddenly everywhere — holding forth in Cabinet meetings while wearing a 'tech support' shirt and black MAGA hat, hoisting his young son on his shoulders in the Oval Office, flying aboard Air Force One, sleeping in the White House. Democrats described the billionaire entrepreneur as Trump's 'co-president,' and senior officials bristled at his imperial approach to overhauling the federal government. After establishing Tesla as a premier electric automaker, building rockets at SpaceX and reshaping the social media landscape by buying Twitter, Musk was confident that he could bend Washington to his vision. Now that's over. Musk said this week that he's leaving his job as a senior adviser, an announcement that came after he revealed his plan to curtail political donations and he criticized the centerpiece of Trump's legislative agenda. It's a quiet exit after a turbulent entrance, and he's trailed by upheaval and unmet expectations. Thousands of people were indiscriminately laid off or pushed out — hundreds of whom had to be rehired — and some federal agencies were eviscerated. But no one has been prosecuted for the fraud that Musk and Trump said was widespread within the government. Musk reduced his target for cutting spending from $2 trillion to $1 trillion to $150 billion, and even that goal may not be reached. In Silicon Valley, where Musk got his start as a founder of PayPal, his kind of promises are known as vaporware — a product that sounds extraordinary yet never gets shipped to market. Trump, who once called Musk 'a truly great American' and 'a patriot,' said nothing about the departure. White House press secretary Karoline Leavitt said: 'We thank him for his service.' Musk's position was always designed to be temporary, and he had previously announced his intention to dedicate more of his time to his companies. But he also told reporters last month that he was willing to work part-time for Trump 'indefinitely, as long as the president wants me to do it.' Musk got a seat at Trump's table and put $250 million behind his campaign It was clear that Musk wouldn't be the typical kind of presidential adviser around the time that he showed the world his belly button. Racing on stage at a campaign rally one month before the election, he jumped for joy next to Trump, his T-shirt rising to expose his midriff. Musk had already sold Trump on his idea for a Department of Government Efficiency while also putting at least $250 million behind his candidacy. The plan called for a task force to hunt for waste, fraud and abuse, a timeworn idea with a new twist. Instead of putting together a blue-ribbon panel of government experts, Trump would give his top donor a desk in the White House and what appeared to be carte blanche to make changes. Musk deployed software engineers who burrowed into sensitive databases, troubling career officials who sometimes chose to resign rather than go along. Trump brushed off concerns about Musk's lack of experience in public service or conflicts of interest from his billions of dollars in federal contracts. Their unlikely partnership had the potential for a generational impact on American politics and government. While Musk dictated orders for government departments from his perch in the White House, he was poised to use his wealth to enforce loyalty to the president. His language was that of catastrophism. Excessive spending was a crisis that could only be solved by drastic measures, Musk claimed, and 'if we don't do this, America will go bankrupt.' But even though he talked about his work in existential terms, he treated the White House like a playground. He brought his children to a meeting with the Indian prime minister. He let the president turn the driveway into a makeshift Tesla showroom to help boost sales. He installed an oversized screen in his office that he occasionally used to play video games. Sometimes, Trump invited Musk to sleep over in the Lincoln Bedroom. 'We'll be on Air Force One, Marine One, and he'll be like, 'do you want to stay over?'' Musk told reporters. The president made sure he got some caramel ice cream from the kitchen. 'This stuff's amazing,' Musk said. 'I ate a whole tub of it.' Looking back on his experience in government, he described it as a lark. 'It is funny that we've got DOGE,' an acronym that references an online meme featuring a surprised-looking dog from Japan. 'How did we get here?' Musk did not give federal workers the benefit of the doubt From the beginning, Musk treated federal workers with contempt. At best, they were inefficient; at worst, they were committing fraud. His team offered them a 'fork in the road,' meaning they could get paid to quit. Probationary employees, generally people new on the job without full civil service protection, were shown the door. Anyone who stayed faced escalating demands, such as what became known as the 'five things' emails. Musk wanted every government employee to submit a list of five things they accomplished in the previous week, and he claimed that 'failure to respond will be taken as a resignation.' Some administration officials curtailed the plan, concerned that it could jeopardize security in more sensitive areas of the government, and it eventually faded, an early sign of Musk's struggle to get traction. But in the meantime, he continued issuing orders like thunderbolts. One day in February, Musk posted 'CFPB RIP,' plus an emoji of a tombstone. The headquarters of the Consumer Financial Protection Bureau, created after the Great Recession to protect Americans from fraud and deceptive practices, was shut down and employees were ordered to stop working. Musk had already started gutting the U.S. Agency for International Development, a pillar of the country's foreign policy establishment and the world's largest provider of humanitarian assistance. 'Spent the weekend feeding USAID into a wood chipper,' he bragged. Thousands of contacts were cut off, pleasing conservatives who disliked the agency's progressive initiatives on climate change and gay rights. Musk rejected concerns about the loss of a crucial lifeline for impoverished people around the globe, saying, 'no one has died.' However, children who once relied on American assistance perished from malnutrition, and the death toll is expected to increase. The lawsuits began piling up. Sometimes workers got their jobs back, only to lose them again. The Food and Drug Administration, which is responsible for ensuring the safety of everything from baby formula to biotech drugs, planned to lay off 3,500 employees. But again and again, the agency was forced to rehire people who were initially deemed expendable, including laboratory scientists, travel bookers and document specialists. Commissioner Marty Makary, who started his job after many of the cuts took place, told attendees at a recent conference that 'it was hard and my job is to make sure we can heal from that.' Only 1,900 layoffs took place, but another 1,200 staffers took buyouts or early retirement. Experts fear the agency has lost much of its institutional knowledge and expertise in areas like vaccines, tobacco and food. There are also concerns about safety on public lands. The National Park Service has been bleeding staff, leaving fewer people to maintain trails, clean restrooms and guide visitors. More cuts at the Forest Service could undermine efforts to prevent and fight wildfires. The Environmental Protection Agency faces a broad overhaul, such as gutting the Office of Research and Development, which was responsible for improving air pollution monitoring and discovering harmful chemicals in drinking water. Not even low-profile organizations were exempt. Trump ordered the downsizing of the U.S. Institute of Peace, a nonprofit think tank created by Congress, and Musk's team showed up to carry out his plan. The organizations' leaders were deposed, then reinstated after a court battle. Musk made little headway at the top sources of federal spending The bulk of federal spending goes to health care programs like Medicaid and Medicare, plus Social Security and the military. Unfortunately for Musk, all of those areas are politically sensitive and generally require congressional approval to make changes. Thousands of civilian workers were pushed out at the Pentagon, and Defense Secretary Pete Hegseth is reducing the ranks of top generals and looking to consolidate various commands. A plan to downsize an office for testing and evaluating new weapons systems could save $300 million per year. Hegseth recently asked employees to submit one idea per week for cutting waste. However, the Pentagon budget would increase by $150 billion, for a total of more than $900 billion, under Trump's spending proposal working its way through Congress. The money includes $25 billion to lay the groundwork for Trump's 'golden dome' missile defense program and $34 billion to expand the naval fleet with more shipbuilding. Another $45 million is expected to be spent on a military parade on June 14, which is the 250th anniversary of the Army's founding and Trump's 79th birthday. Musk also faced blowback for targeting Social Security, which provides monthly benefits to retirees and some children. He suggested that the popular program was 'a Ponzi scheme' and the government could save between $500 billion and $700 billion by tackling waste and fraud. However, his estimates were inflated. Social Security's inspector general said there was only $71.8 billion in improper payments over eight years. Nor was there any evidence that millions of dead people were receiving benefits. Changes to Social Security phone services, pitched as a way to eliminate opportunities for fraud, were walked back after an outcry from lawmakers and beneficiaries. But the agency could still shed 7,000 workers while closing some of its offices. Musk's popularity cratered even though Americans often agreed with his premise that the federal government is bloated and wasteful, according to polling from The Associated Press-NORC Center for Public Affairs Research. Just 33% of U.S. adults had a favorable view of Musk in April, down from 41% in December. In addition, 65% said Musk had too much influence over the federal government. Musk talked of staggering savings but delivered modest results During a campaign rally in October, Musk said he could find 'at least $2 trillion' in spending cuts. In January, before Trump was inaugurated, he revised by saying, 'if we try for $2 trillion, we've got a good shot at getting one.' But in April, at a Cabinet meeting, Musk provided a different target. He was 'excited to announce' that they could reach $150 billion in savings during the current fiscal year. Whether that figure proves to be accurate is difficult to measure, especially because DOGE routinely inflated or mischaracterized its work. But it falls short of President Bill Clinton's initiative three decades ago, which resulted in $136 billion in savings — the equivalent of more than $240 billion today. Elaine Kamarck, a key figure in the Clinton administration, said they focused on making the government more responsive and updating antiquated internal procedures. The work took years. 'We went about it methodically, department by department,' she said. The effort also reduced the federal workforce by more than 400,000 employees. However, Musk did little to seek insight from people who knew the inner workings of government. 'They made some changes without really knowing what they were doing,' said Alex Nowrasteh, vice president for economic and social policy studies for the libertarian think tank Cato Institute. He said there were 'a lot of unforced errors.' In the end, Nowrasteh said, 'they set themselves up for failure.' ____ Associated Press writers Tom Beaumont in Des Moines and Lolita Baldor, Matthew Daly, Gary Fields, Fatima Hussein, Ellen Knickmeyer, Matthew Perrone, Michelle Price and Amelia Thomson DeVeaux in Washington contributed to this report.
Fox News
5 days ago
- Business
- Fox News
DOJ reaches plea deal with Dem donor who sought to bribe her way to Kennedy Center seat
A Los Angeles County woman, who served on a presidential advisory committee under the Biden administration and has an extensive history of donating to Democrats, reached a plea agreement with the Department of Justice (DOJ) for making tens of thousands of dollars in illegal campaign contributions to reportedly secure a seat on the Kennedy Center Board of Trustees, the DOJ announced Wednesday. Teena Maria Hostovich, 66, was charged Wednesday with making contributions in the name of another aggregating to more than $10,000 in a year, which is a felony, the DOJ reported. She revealed in her plea agreement that she carried out the scheme in part to secure a spot on the Kennedy Center's Board of Trustees, the DOJ stated in the press release. The John F. Kennedy Center for the Performing Arts serves as the national cultural center of the U.S. and is located in Washington, D.C. Hostovich is an insurance broker who used the identities of 11 other people, including co-workers and family members of co-workers, to illegally contribute more than $75,000 to political candidates between 2020 and 2023, the DOJ stated in a press release. "According to her plea agreement, from May 2020 through 2023, Hostovich knowingly and willfully made a total of $75,700 in contributions to federal candidates' principal campaign committees and federal joint fundraising committees in the names of other people," the DOJ said in a press release. "For the calendar years 2021 through 2023, Hostovich's conduit contributions aggregated to more than $10,000 during each of those years." Hostovich agreed in a court filing Wednesday to plead guilty to the federal criminal charge and pay a $43,500 fine. Her scheme included contacting co-workers, their family members and other people "who performed personal services for Hostovich and her family" to ask them to make a donation to a political campaign or fundraising committee, according to the press release. She would then use PayPal to reimburse the individual for the contribution or pay them up front before the contribution was made, the Justice Department explained. "To execute these conduit contributions, Hostovich sometimes explicitly stated that she would advance the money for the contribution or pay the person back for that contribution," the press release outlined. "Other times, the person had an implicit understanding that Hostovich would advance the money or reimburse them based on her history of advancements and reimbursements of political contributions. Hostovich generally advanced or reimbursed these individuals in amounts that exceeded the exact contribution amount but often the amounts were very close to the contribution amount." Fox News Digital reviewed a website promoting a book Hostovich wrote in 2024 on climbing America's corporate ladder, which also touted Hostovich as a member of the Clinton Global Initiative, and that former President Joe Biden appointed her to serve on the President's Advisory Committee on the Arts. "She is a member of the Clinton Global Initiative and the White House Historical Association. President Biden recently appointed her to the President's Advisory Committee for the Arts, and she is the Co-Chair of the Advisory Council to the Kennedy Center's President and Chairman," the bio states, which is accompanied by photos of Hostovich with high-profile Democrats such as Hillary Clinton, former President Bill Clinton and Biden. Fox News Digital reached out to the Clinton Foundation for comment but did not immediately receive a reply. An archived official White House press release from 2023 under the Biden administration detailed Hostovich's position on the President's Advisory Committee on the Arts, including touting her "corporate governance responsibility, political activism, and philanthropic work." "She has combined her lifelong passion for the arts, history, and education with her corporate governance responsibility, political activism, and philanthropic work," the bio states. "In addition to serving on the Board of the Los Angeles Philharmonic for over a decade, she has been one of the Chairs (along with her husband and son) of Hollywood Bowl Opening Night many times (including 2023) honoring significant artists and showcasing the LA music community while raising money for Music Matters benefitting music/arts programs in public schools." It is unclear how donations made in other people's names would bolster her reported efforts to secure a spot on the Kennedy Center Board of Trustees. The president appoints general trustees to the board, while other members are appointed by Congress. A representative for Hostovich told Fox News Digital in an emailed statement Tuesday morning that "Teena Hostovich has agreed to plead guilty to one count of making contributions in the name of another, involving five donations of $2,900 each in 2021. In doing so, she is accepting responsibility for her conduct early and swiftly." The statement continued that Hostovich's "mistakes are out of character," arguing that her "career, accomplishments, and numerous charitable deeds reflect a lifetime of hard work and generosity." "Her generosity and commitment to her community led to her involvement in donating and fundraising for causes and candidates that she believed would champion fairness, equality, and improve society," the spokesperson continued. "She deeply regrets that her ardent support of some candidates led to lapses in judgment in a fraction of the donations she helped to raise and make. She is even more remorseful for the shadow that this investigation may cast on the candidates to whom the donations were made, as they had no knowledge of any wrongdoing." "Throughout this process, Ms. Hostovich has cooperated fully and worked transparently with law enforcement authorities. She is committed to making the appropriate amends." The DOJ did not identify in its press release which political party Hostovich favored, though Federal Election Commission (FEC) records reviewed by Fox News show Hostovich made hundreds of donations across the years to Democrat politicians, the Democratic Party and left-wing political action committees. Hostovich has nearly 1,000 entries on the FEC's database regarding donations she made under her own name stretching back to 2008 through the 2024 election cycle. The FEC data shows she donated to campaigns and groups such as the Obama Victory Fund, Democratic Party of Virginia, Pasadena, California, area United Democratic Headquarters and Chris Coons for Delaware during the 2008–2012 period. More recent data from the 2024 election cycle shows she donated to groups such as the North Carolina Democratic Party – Federal, the Wyoming Democratic State Central Committee, the Pennsylvania Democratic Party and the Democratic State Committee (Delaware). Searching for donations made to groups or campaigns containing the name "Republican" or "GOP" yielded zero results, Fox News Digital found. The FBI carried out an investigation into Hostovich before she was charged and reached a plea agreement, the DOJ said. The DOJ told Fox Digital on Tuesday that Hostovich is scheduled to appear in court on June 13 in Los Angeles.
CTV News
5 days ago
- Business
- CTV News
Trump targeted Democrats over questionable online fundraising. His campaign has similar issues
WASHINGTON — When U.S. President Donald Trump directed his attorney general last month to investigate online fundraising, he cited concerns that foreigners and fraudsters were using elaborate 'schemes' and 'dummy accounts' to funnel illegal contributions to politicians and causes. Instead of calling for an expansive probe, however, the president identified just one potential target: ActBlue, the Democrats' online fundraising juggernaut, which has acknowledged receiving over 200 potentially illicit contributions last year from foreign internet addresses. Trump's announcement contained a glaring omission — his political committees also received scores of potentially problematic contributions. An Associated Press review of donations to Trump over the past five years found 1,600 contributions from donors who live abroad, have close ties to foreign interests or failed to disclose basic information, often making it difficult, if not impossible, to identify them and verify the legality of their donations Among those was US$5,000 linked to a derelict building, and $5,000 from a Chinese businessman who listed a La Quinta Inn as his address. Another sizable donation — $1 million — was made by the wife of an African oil and mining magnate. It's against the law for U.S. candidates and political committees to accept contributions from foreign nationals. Laws also place strict limits on donation amounts and prohibit the laundering of contributions to get around legal caps. For the most part, such donations have been policed by campaigns and the Federal Election Commission, with only the most egregious examples being targeted by federal law enforcement. But after reclaiming the White House, Trump embarked on a campaign of retribution against his perceived enemies, launching broadsides against universities, law firms and his own former officials. If the Justice Department were to investigate ActBlue, it could imperil a key fundraising tool for Trump's political rivals before the 2026 midterm elections, when Republicans' threadbare House majority — and the president's ability to pass an agenda through Congress — will be on the line. 'This is him taking direct aim at the center of Democratic and progressive fundraising to hamstring his political opponents,' said Ezra Reese, an attorney who leads the political law division at the Elias Law Group, a leading Democratic firm that does not represent ActBlue. 'I don't think there's any question that they picked their target first. He's not even pretending.' Trump's committees collected scores of donations from people living overseas The White House did not respond to questions about Trump's fundraising, including what sort of fraud prevention measures his committees have in place. Instead, a senior administration official pointed to the findings of a recent House Republican investigation of ActBlue that the White House alleges 'uncovered specific evidence of potentially unlawful conduct.' 'The memorandum directs the attorney general to investigate this matter broadly, and she will follow the evidence and take appropriate action as warranted,' said the official, who insisted on anonymity to discuss the matter. Neither the Justice Department nor Trump's 2024 campaign co-manager Chris LaCivita responded to requests for comment. U.S. citizens living abroad are free to donate to politicians back home. But it can be difficult even for campaigns to discern who is allowed to give and whether a person may be serving as a 'straw' donor for someone else seeking to influence U.S. elections. The AP identified only two Trump donors out of more than 200 living abroad whose U.S. citizenship was listed as 'verified' in the president's campaign finance reports. He received over 1,000 contributions from 150 donors who omitted key identifying details such as their city, state, address or country. Trump also received at least 90 contributions from people who did not give a full name, are listed as 'anonymous' or whose donations include the notation 'name not provided.' Many of these Trump donors contributed through WinRed, the Republicans' online fundraising platform that is the GOP's answer to ActBlue. Only about three dozen of these contributions were rejected, most of which came from an unknown source and were paid in cryptocurrency, campaign finance disclosures show. WinRed officials did not respond to a request for comment. 'Foreign money in our elections is a legitimate concern,' said Dan Weiner, a former Federal Election Commission attorney who is now director of the Brennan Center's elections and government program. 'What's not legitimate is to single out one political opponent and pretend the problem is limited to them.' Donating from a La Quinta Inn Jiajun 'Jack' Zhang, for example, is a jet-setting Chinese businessman whose Qingdao Scaffolding Co. boasts of being one of the 'biggest manufacturers and suppliers in China' of scaffolding. In October, he used WinRed to donate $5,000 to Trump, campaign finance disclosures show. Zhang lives in China's Shandong province, according to his LinkedIn account, and is described in French business filings as a Chinese national. But his contribution to Trump lists a La Quinta Inn in Hawaiian Gardens, California, as his address, records show. The donation was made around the time that Zhang posted a photo on social media of his family visiting Disneyland, which is near the hotel. Zhang did not respond to an email seeking comment. Other potentially troublesome donations include four from unnamed donors listing an address of '999 Anonymous Dr.' There is also a series of contributions made through WinRed that listed the donor's address as a vacant building in Washington that was formerly a funeral home. The donor, identified only as 'Alex, A' on Trump's campaign finance report, gave nearly $5,000, spread across more than 40 separate transactions last year. Those types of donations tend to draw scrutiny from campaigns and regulators. Regulators and watchdogs have also long been concerned about donations from individuals with ties to foreign interests. Trump has received many such contributions, including one in December from Nnenna Peters, the wife of Benedict Peters, a Nigerian billionaire who is the founder and CEO of oil and mining businesses. Nnenna Peters, who goes by Ella, gave $1 million to Trump's inaugural committee. A naturalized citizen, Nnenna Peters — who lives in Potomac, Maryland, a tony suburb of the capital — is allowed to make campaign donations. Federal law, however, bars U.S. citizens from making contributions on behalf of a noncitizen spouse if the money is not a shared asset. For example, experts said, a husband could be prohibited from making a campaign donation using funds from a checking account solely in his wife's name. In practice, such a prohibition is hard to enforce because it is difficult to assess whether spouses are acting on their own accord or on behalf of significant others. Government watchdogs say donations like these raise the risk of an attempt to influence U.S. policy on behalf of a foreign interest. That was precisely the kind of problem Trump cited in his executive order that singled out ActBlue. Benedict Peters, as it turns out, has a lot to offer that could be of interest to Trump, who has made the extraction of natural resources a focus on his second administration. In particular, the Trump administration has sought to secure access to critical minerals that help power modern technology. Peters' Aiteo Group markets itself as one of the largest energy conglomerates in Nigeria, while his company, Bravura Holdings, purports to hold the rights to vast critical mineral deposits across Africa. His wife's donation stands out in light of her past giving: She donated exclusively to Democrats, records show, including a $66,800 contribution to Hillary Clinton's 2016 campaign. 'This clearly could have come from her husband,' said Craig Holman, a registered lobbyist for Public Citizen, a Washington-based government watchdog group. 'This is something the FEC should take a very, very close look at.' Benedict and Ella Peters did not respond to requests for comment. Indifference towards campaign finance rules The questionable donations fit a pattern for Trump, who has in the past exhibited indifference toward campaign finance rules and used his presidential powers to assist those facing legal trouble in such matters. In January, Trump's Justice Department dropped its case against former Rep. Jeff Fortenberry, a Nebraska Republican accused of accepting a $30,000 contribution from a Nigerian billionaire. During his first term, Trump pardoned conservative commentator Dinesh D'Souza and Republican donor Michael Liberty, who were both convicted of using straw donors to evade contribution limits. He also pardoned former California Rep. Duncan Hunter, who was convicted in 2020 of stealing $250,000 from his campaign fund. Trump's political efforts have also drawn contributions from straw donors and foreigners who have been subjected to legal scrutiny. Among them is Barry Zekelman, a Canadian steel industry billionaire, who was fined $975,000 in 2022 by the Federal Election Commission for funneling $1.75 million to America First Action, Trump's official super PAC, in 2018. The contribution helped Zekelman secure a dinner with Trump at which steel tariffs were discussed. Two Soviet-born U.S. citizens, Lev Parnas and Igor Fruman, were convicted in a straw donor scheme that funneled $325,000 to the same super PAC in the runup to Trump's losing 2020 reelection campaign. Jesse Benton, a Republican political operative, was convicted in 2022 of serving as a straw donor for a Russian businessman who contributed $25,000 to Trump's 2016 campaign. Democrats say Trump's focus on ActBlue is a lot to stomach in light of Trump's acceptance of questionable donations and his seeming lack of interest in enforcing campaign finance laws more generally. They noted that Trump in February fired a commissioner at the Federal Election Commission. The firing, followed by the resignation of a Republican commissioner, has denied the agency the quorum necessary to enforce campaign finance laws and regulations. 'It's telling that while Trump and his allies attack grassroots-funded platforms like ours, their own campaigns have welcomed money from questionable sources,' ActBlue spokesperson Megan Hughes said. Republicans counter that there is well-founded reason to investigate the Democratic platform, which eased some fraud detection protocols in 2024 before the presidential election. Democrats are concerned about ActBlue's future There is, however, a political upside to investigating ActBlue. The platform has proved more successful than WinRed, the Republican platform designed to imitate it, which took in less than half of the $3.8 billion that ActBlue raised during the 2024 election cycle. ActBlue representatives declined to say whether they have been contacted by the Justice Department. ActBlue is expected to battle any investigation. It took a different approach when a Republican-led congressional committee launched an investigation in 2023. That committee's findings turned out to be the basis for some of the allegations cited by Trump in his executive order. Democrats, meanwhile, are preparing for the worst. 'There is a pervasive fear that ActBlue could cease to exist,' said Matt Hodges, a veteran Democratic operative who served as the director of engineering for Joe Biden's 2020 campaign. 'That's the worst fear people have — that this will escalate or drain legal resources that hinder their ability to operate.' He predicted that the Democrats could lose more than $10 million in the short term if ActBlue were forced to shut down. That has led some Democrats to begin thinking about alternatives, but they acknowledged it might be too late to create something as successful as ActBlue with the midterms around the corner. ___ Brian Slodysko And Steve Peoples, The Associated Press Peoples reported from New York.
