Warren, Waters Call for Investigation After Commerce Secretary Lutnick Promotes Tesla Stock on National TV
“Mr. Lutnick is prohibited from endorsing ‘any product, service, or enterprise’ using his government position.”
“Cantor Fitzgerald, Mr. Lutnick’s family firm, has hundreds of millions of dollars in exposure to Tesla stock.”
“Mr. Lutnick’s apparent attempt to manipulate Tesla’s share price in a manner potentially benefiting his family’s and friend’s financial position could violate applicable ethics law.”
Washington, D.C. – Senator Elizabeth Warren (D-Mass.) and Representative Maxine Waters (D-Calif.) sent a letter to the U.S. Office of Government Ethics demanding an investigation into Commerce Secretary Howard Lutnick for potentially violating federal ethics laws.
During a March 19 appearance on Fox News, Lutnick urged viewers to purchase Tesla stock. Referring to the car company, Lutnick shared: “If you want to learn something on this show tonight, buy Tesla… It’ll never be this cheap again.”
As an Executive Branch employee, Mr. Lutnick is barred from using his public position for personal gain. Mr. Lutnick’s ethics agreement provided he would not participate in certain actions affecting Cantor Fitzgerald’s financial interests until obtaining a conflict-of-interest waiver. It is unclear whether Lutnick obtained the waiver. Cantor Fitzgerald, Lutnick’s family firm, has hundreds of millions of dollars in Tesla stock. Although Lutnick agreed to divest from Cantor Fitzgerald, his sons were recently installed in top positions at the firm.
“Cantor Fitzgerald upgraded Tesla stock to a “buy” rating the same day Mr. Lutnick urged the public to buy shares in the company. Mr. Lutnick’s apparent attempt to manipulate Tesla’s share price in a manner potentially benefiting his family’s and friend’s financial position could violate applicable ethics law,” wrote the lawmakers.
The lawmakers concluded by asking that the Office of Government Ethics recommend that ethics officials at the Commerce Department investigate and take any appropriate disciplinary action against Lutnick.
“Mr. Lutnick’s actions demonstrate, at the very least, a flagrant disregard for the spirit of these standards, and appear to be a violation of their letter. The American public deserves better,” wrote the lawmakers.
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