Political Corruption and Emoluments; The Intersection of Power and Personal Gain

 Political Corruption and Emoluments; The Intersection of Power and Personal Gain

Individuals with little to no experience in government, often find emoluments restrictions limiting perks that even hint at influence for sale, a confusing concept. In private industry a laxer approach is often acceptable. In government, using an official position for personal enrichment is the definition of corruption.

Emoluments are not illegal per se, as they include such things as salary, health insurance, retirement plans, and other forms of remuneration. They are the compensation generally associated with employment. The problems with government emoluments come only when the recipient and the source of the emolument have interests beyond the scope of regular business activity or where an advantage or favor might be sought. Such emoluments in government, even when given with the best of intentions, that might be perceived as corrupt, are to be avoided and in most cases they are illegal.

The U.S. Constitution addresses foreign emoluments in Article I, Section 9, and domestic emoluments in Article II, Section 1. The foreign emoluments clause prohibits federal office holders from accepting gifts, payments, or other items of value from foreign states or rulers. The domestic emoluments clause deals with prohibiting the president from receiving any compensation from the federal government or any state beyond what is provided by law for their salary.

Government office holders and employees are often caught “coloring outside the lines” defined within the emoluments restrictions. The Constitution covers all federal officials holding an “Office of Profit or Trust.” Federal elected office holders and employees in a position of trust who may, in line with their duties, make decisions that can benefit themselves or others would be subject to these restrictions.

Beyond the formal legal requirements of the emoluments clauses, government officials are also legally required to adhere to ethical standards and principles. While the term “ethical” may be a bit vague, most jurisdictions have laws and codes of conduct that outline expected behavior. These would include conflicts of interest, use of public resources, and gift giving (receiving).

In the case of the president, enforcement of any laws or ethical standards, was made even more difficult with the recent Supreme Court decision of July 1, 2024. With that decision, the president has absolute immunity for all “official acts.” There was no such provision for unofficial acts. When a president proclaims that everything is “Official,” he can govern as a dictator until challenged in the courts or impeached. Even after impeachment, without a removal order of a 2/3 majority, he can still rule like a king.

Donald J. Trump may be our first openly corrupt president. His morality was developed in the backrooms of New York under the tutelage of the legal and political fixer, Roy Cohn. Ethics are for suckers when profits are involved. Trump’s voyage into crypto assets provide another vehicle for massive political corruption and influence peddling. All of which can “fly under the radar” of public scrutiny. In the cryptocurrency world, transactions can be anonymous and easily cross international borders. The Trump family businesses are thriving in a world where the head of that family can, with the stroke of a pen on an executive order, make or break the fortunes.

You can only rent so many $900 a night hotel rooms at a Trump owned facility, to buy whatever ten thousand dollars or so will get you in presidential favors. But you can easily slip him $10 million with a Trump crypto purchase. Get your checkbooks out, the line starts on the right. We can pass all the “Sunshine Laws” we want to get some transparency in government, but when we allow officials to actively trade in crypto, we have government in the moonshine during an eclipse.

Four hundred-million-dollar Qatari luxury jets may tend to be but a minor corrupt distraction when compared to the possibilities of crypto. With Trump, it is all about deal making. While some of his “deal making” efforts might involve national interests, his recent Middle East trip involved other deals for luxury skyscrapers, golf courses and cryptocurrency. His personal deals came comingled with the official business of the nation. His attitude seems to be, if he gets richer, we all somehow benefit. His recent trip, under the cover of improving relations, also involved real estate deals in all three visited Middle East countries.

Such public corruption is not unique to the Trump presidency. In the 90s, Bill Clinton allowed significant Democratic donors to stay in the Lincoln Bedroom. At the time this was a scandal with a name, Fat Cat Hotel. By Trump standards, Clinton was a piker. That money went to campaign finance fund coffers. In Trump’s case, two Trump Organization affiliates and his World Liberty Financial (WLF) are making billions of dollars. In one such deal, the government of Abu Dhabi made a $2B deposit from a venture fund to WLF.

Meanwhile, Trump is actively working to deregulate the crypto industry making it easier for his financial transactions to avoid restrictions. He is also bolstering that business with the establishment of a “strategic” bitcoin reserve.

In an almost laughable dismissal by White House press secretary Karoline Leavitt, when asked about the president conducting personal business on his trip to the Middle East said, “It’s frankly ridiculous that anyone in this room would even suggest that President Trump is doing anything for his own benefit,” Leavitt said. “This White House holds ourselves to the highest of ethical standards.” I guess she didn't know about the hotel and golf course and bitcoin business stuff.

When it comes to coordination of Trump’s plans with the press secretary, a 1967 movie quote from the film Cool Hand Luke comes to mind. “What we’ve got here is a failure to communicate.” In another closing quote that could easily have come from Donald Trump but actually came from a much greater intellect, Yogi Berra: “I never said most of the things I said.”