April 25, 2017 Steve A. Linick Inspector General U.S. Department of State 2201 C Street NW Room 8100, SA-3 Washington, DC 20520-0308 Dear Mr. Linick: American Oversight respectfully requests that you immediately open an investigation into whether employees of the State Department violated 5 C.F.R. § 2635.702 or any other ethics requirements by promoting President Donald Trump’s commercial resort, Mar-a-Lago, on ShareAmerica and other State Department websites. 1 2 To date Mr. Trump has refused to divest himself of his business interests, creating clear conflicts of interest and breaking decades of practice by his predecessors. The Office of Government Ethics described Mr. Trump’s purported decision to cede operational control but not financial control of his businesses as “meaningless from a conflict of interest perspective.” In addition to Mr. Trump himself, members of the Trump family also appear to be benefitting directly and indirectly from the president’s public service. 3 4 5 Leigh Hartman, Mar-a-Lago: The Winter White House, SHAREAMERICA, Apr. 4, 2017, https://share.america.gov/mar-a-lago-winter-white-house/. U.S. Department of State: Economic & Business Affairs (@EconAtState), FACEBOOK (Apr. 5, 2017, 1:30 PM), https://www.facebook.com/EconAtState/posts/1386160144810068; U.S. Embassy-Tirana, (@usembassytirana), FACEBOOK (Apr. 5, 2017, 1:00 PM), https://www.facebook.com/usembassytirana/posts/10154547231765838; U.S. Mission to the United Kingdom, Mar-a-Lago: The Winter White House, U.S. EMBASSY & CONSULATES IN THE UNITED KINGDOM, Apr. 5, 2017, https://uk.usembassy.gov/mar-lago-winter-white-house/. Alina Selyukh, In U.S. Ethics Chief, an Unlikely Gadfly to Trump, NPR (Jan. 19, 2017, 4:27 PM), http://www.npr.org/2017/01/19/510584962/in-u-s-ethics-chief-an-unlikely-gadfly-to-trump. Christine Stenglein, OGE Director Warns Trump’s Business Plan Insufficient, THE BROOKINGS INSTITUTION, Jan. 11, 2017, https://www.brookings.edu/blog/fixgov/2017/01/11/oge-directorwarns-trumps-plan-insufficient/. See Ivanka Trump’s Fashion Sales Are Skyrocketing Despite Boycott Calls, FOXNEWS.COM, Mar. 8, 2017, http://www.foxnews.com/entertainment/2017/03/08/ivanka-trumps-fashion-sales-areskyrocketing-says-company-president.html; Nick Penzenstadler et al., Trump Condos Worth $250 Million Pose Potential Conflict, USA TODAY (Apr. 20, 2017, 11:20 PM), https://www.usatoday.com/story/news/2017/04/20/trump-owns-250m-condos-and-you-could-buyone/100566302/. 1 2 3 4 5 1030 15th Street NW, Suite B255, Washington, DC 20005 AmericanOversight.org One of Mr. Trump’s ongoing financial and commercial entanglements is Mar-a-Lago—a private club purchased by Mr. Trump in 1985. Mr. Trump “used the estate as a private residence until 1995,” when “Mar-a-Lago became established as The Mar-a-Lago Club.” In January 2017, the Trump Organization raised membership fees to $200,000. 6 7 8 It now seems that several components of the State Department are endorsing Mr. Trump’s Mar-aLago property in violation of the Standards of Ethical Conduct. 9 10 On April 4, ShareAmerica posted an article titled “Mar-a-Lago: The Winter White House.” The post referred to the property as Mr. Trump’s “Florida estate,” noted that Mr. Trump “opened the estate to dues-paying members of the public,” and described Mr. Trump as “a real-estate magnate.” On April 5, the story was reposted by several other components within State. Moreover, it appears that the U.S. Mission to the United Kingdom even uses “Mar-a-Lago” as a blog “tag.” On April 24, public attention was drawn to the State materials as Twitter posts began to publicize the links. 11 12 13 14 Endorsements of Mr. Trump’s property would seem to violate Section 2635.702 of the Standards of Ethical Conduct, which states that “[a]n employee shall not use his public office . . . for the endorsement of any product, service or enterprise, or for the private gain of friends, relatives, or . . . persons with whom the employee has or seeks employment or business relations.” 15 History, THE MAR-A-LAGO CLUB, http://www.maralagoclub.com/Default.aspx?p=dynamicmodule&pageid=100013&ssid=100035&vn f=1 (last visited Apr. 24, 2017). Id. Gina Cherelus, Trump’s Mar-a-Lago Resort Hikes Membership Fees to $200,000, REUTERS (Jan. 25, 2017, 3:40 PM), http://www.reuters.com/article/us-usa-trump-resort-idUSKBN1592NW. “ShareAmerica is the U.S. Department of State’s platform for sharing compelling stories and images that spark discussion and debate on important topics like democracy, freedom of expression, innovation, entrepreneurship, education, and the role of civil society.” About Us, SHAREAMERICA, https://share.america.gov/about-us/ (last visited Apr. 24, 2017). Hartman, supra note 1. Id. U.S. Department of State: Economic & Business Affairs (@EconAtState), FACEBOOK (Apr. 5, 2017, 1:30 PM), https://www.facebook.com/EconAtState/posts/1386160144810068; U.S. Embassy-Tirana, (@usembassytirana), FACEBOOK (Apr. 5, 2017, 1:00 PM), https://www.facebook.com/usembassytirana/posts/10154547231765838; U.S. Mission to the United Kingdom, Mar-a-Lago: The Winter White House, U.S. EMBASSY & CONSULATES IN THE UNITED KINGDOM, Apr. 5, 2017, https://uk.usembassy.gov/mar-lago-winter-white-house/. https://uk.usembassy.gov/tag/mar-a-lago/. See Eric Lipton (@EricLiptonNYT), TWITTER (Apr. 24, 2017, 2:57 PM), https://twitter.com/EricLiptonNYT/status/856582802560749568; Josh Schwerin, (@JoshSchwerin), TWITTER (Apr. 24, 2017, 2:03 PM), https://twitter.com/JoshSchwerin/status/856569274529435648; Ron Wyden (@RonWyden), TWITTER (Apr. 24, 2017, 2:46 PM), https://twitter.com/RonWyden/status/856580066389708801. 5 C.F.R. § 2635.702. 6 7 8 9 10 11 12 13 14 15 2 American Oversight does not know the origin of the initial ShareAmerica story regarding Mar-aLago. It may be that, in a world where Mr. Trump’s financial conflicts are becoming normalized, the ShareAmerica author simply took the initiative to draft the post in a lapse of judgement, not fully appreciating that it was inappropriate to promote the president’s for-profit commercial resort. If so, this would reflect a troubling absence of appropriate editorial controls over the content of ShareAmerica. Alternatively, the White House or State Department leadership may have encouraged the use of government resources to promote the commercial and financial interests of the Trump family. If the idea for this story originated with the White House or the State Department’s political leadership, this would raise more serious questions about whether ethical rules and possibly prohibitions backed by criminal penalties were violated. No matter the genesis, an inquiry by your office is necessary to identify the source and reasoning for publishing the article on Mar-a-Lago on the State Department’s website and its subsequent promotion by embassies abroad. An investigation is also necessary to remedy the situation and ensure that appropriate safeguards are in place to avoid the further use of State Department resources to promote the private business interests of Mr. Trump and his family. As the Standards of Ethical Conduct set out, “[p]ublic service is a public trust, requiring employees to place loyalty to the Constitution, the laws and ethical principles above private gain.” Violations of this standard erode public confidence in the integrity of government operations and those holding public office. This would not be the first time the administration has run afoul of ethical standards. 16 17 American Oversight is a non-partisan organization dedicated to accountability and ethics in government. No doubt we share that commitment with you. We urge you to investigate the State Department’s promotion of Mr. Trump’s properties, and, if you find a violation of the law, recommend appropriate corrective or disciplinary action pursuant to 5 C.F.R. § 2635.106 or other appropriate authority. Sincerely, Melanie Sloan Senior Advisor American Oversight 16 5 C.F.R. § 2635.101(b)(1). Letter from Walter M. Shaub, Jr., Director, Office of Government Ethics, to Stefan C. Passantino, Deputy Counsel to the President and Designated Agency Ethics Official, The White House (Feb. 13, 2017), available at https://app.box.com/s/46c4uggxa2osxj9znpfw6deizggh1ijx; Letter from Walter M. Shaub, Jr., Director, Office of Government Ethics, to Senator Ron Wyden, Ranking Member, Committee on Finance, U.S. Senate (Mar. 31, 2017), available at https://www.oge.gov/web/OGE.nsf/Congressional%20Correspondence/282B38EF4C78AD208525 80F8004D2768/$FILE/Letter%20to%20R.%20Wyden.pdf?open. 17 3 cc: Walter M. Shaub, Jr. Director U.S. Office of Government Ethics 1201 New York Avenue NW Washington, DC 20005 Congressman Jason Chaffetz Chairman House Committee on Oversight & Government Reform 2157 Rayburn House Office Building Washington, DC 20515 Congressman Elijah E. Cummings Ranking Member House Committee on Oversight & Government Reform 2157 Rayburn House Office Building Washington, DC 20515 Senator Ron Johnson Chairman U.S. Senate Committee on Homeland Security & Government Affairs 340 Dirksen Senate Office Building Washington, DC 20510 Senator Claire McCaskill Ranking Member U.S. Senate Committee on Homeland Security & Government Affairs 340 Dirksen Senate Office Building Washington, DC 20510 4