ethics

Ethics experts sounded the alarm Wednesday after new financial disclosure reports revealed that President Trump’s income ballooned to $2.2 billion in 2025, with $1.4 billion coming from various new cryptocurrency-related businesses.

“It’s bribery. It’s graft. It’s exploitation of public power for private financial gain,” said Kathleen Clark, a law professor at Washington University and an expert in government ethics. “Trump has — with the acquiescence of a somnolent, GOP-controlled Congress and the active assistance of John Roberts’ Supreme Court — transformed the presidency into a massive corruption racket.”

Trump reported income of over $600 million in 2024. But after he entered the White House in 2025, he reported that his income had soared to more than $2.2 billion.

The 2025 annual disclosure report filed with the Office of Government Ethics shows that Trump ramped up his real estate business in countries across the globe, particularly in the Middle East, at a time when his government was negotiating over vital issues of military aid and economic tariffs. The president also expanded his dealings in the relatively new realm of cryptocurrency.

According to the 927-page report, Trump made $635 million in royalties from Celebration Coins and more than $500 million from his World Liberty Financial crypto firm. He drew in millions from a raft of Trump-branded merchandise including God Bless the USA Bibles and sneakers depicting him with his hand raised in a fist. He also brought in $10.4 million from a property in the United Arab Emirates and $9 million from a property in Saudi Arabia.

Noah Bookbinder, an ethics expert and former president of Citizens for Responsibility and Ethics, a nonprofit watchdog group in Washington, described Trump’s business dealings while in the White House as “entirely unprecedented, certainly in modern history, but I think by most ways of measuring, in all of American history.”

“This is corruption,” Bookbinder said. “You have a president who has been quite transparently using the presidency in ways that benefit his business interests and intertwining the presidency and business interests.”

But the president and the White House brushed aside ethics concerns about the money Trump is making.

Trump told reporters Wednesday that he made a lot of money before he came to the White House, he had “big institutions” run his money, and that he had benefited, like every other American, as the stock market went up.

“We’re all profiting,” he said. “I’m profiting because I have a lot of money and a lot of cash.”

In a statement, White House spokesperson Anna Kelly said: “Neither the President nor his family has ever engaged — or will ever engage — in conflicts of interest. … All actions by President Trump and his administration are taken in the best interest of the American people.”

Although the report does not show exactly how much Trump is earning — it provides details of revenue, rather than profit — the scale of the president’s cryptocurrency dealings elevated ethics watchdogs’ long-standing concerns.

Jordan Libowitz, a vice president at Citizens for Responsibility and Ethics, said the most concerning detail of the new report is the hundreds of millions of dollars coming in from various crypto ventures partnered with companies that the American public knows little about.

“At a time when his own administration itself is setting regulation for these types of companies,” Libowitz said, “there’s just this massive opportunity for corruption when foreign governments and foreign nationals can pour tens of millions of dollars into the president’s pocket.”

As a real estate mogul, Trump has long invested in hotels, condominiums and golf courses. But cryptocurrency, Libowitz said, offers vastly more potential for corruption.

“There’s only so many hotel rooms you can book, so many rounds of golf, but there’s no limit with crypto,” Libowitz said. “You can just buy his meme coin and he gets a cut, so you kind of take out the middleman, but also the cap or the amount of money you can funnel to the president.”

Libowitz said it was also problematic for Trump to expand his real estate empire in foreign countries, particularly the Middle East.

“Now it seems that almost all his new developments are in foreign countries, and that opens up, if you’re building this giant resort, you’re going to need help from the local government, whether it’s tax breaks or utility issues, or building a road, or speeding up permits,” Libowitz said. “These are ways that foreign governments can do favors for the American president.”

In the half a century before Trump was elected, ethics experts say, presidents from Nixon to Obama publicly released their tax returns, sold properties or put the proceeds in a blind trust managed by someone they did not know.

“They weren’t doing it because they legally had to, but because they thought it was the right thing to do,” Libowitz said.

Ever since Trump was first elected in 2016 and opted to not sell his businesses or put them in blind trusts, ethics experts have urged Congress to impose more aggressive financial oversight over money in politics.

“Congress needs to update the law, and basically, mandate blind trusts and sale of assets and disclosure of tax returns,” Libowitz said.

Noting that the Constitution’s Emoluments Clause explicitly states that the president cannot accept things of value from foreign or domestic governments, ethics experts say Trump is flouting the law and Congress has chosen to not enforce it.

Richard Painter, a law professor at the University of Minnesota and former White House ethics lawyer under President George W. Bush, said Congress needed to close loopholes that exempt presidents from federal conflict of interest laws as well as enforce the Foreign Emoluments Clause.

“Nobody holding a position of trust with the United States government can accept emoluments, profits and benefits from foreign governments, and that is flatly prohibited under the United States Constitution,” Painter said. “Now, if the United Arab Emirates put money into Liberty Financial, as I understand they did … and then Trump makes money off Liberty Financial, that’s a Foreign Emoluments Clause problem.”

Congress, he said, should empower an independent prosecutor to investigate such conflicts.

“The problem with the Foreign Emoluments Clause is how do we enforce it?” Painter said. “The founders and head of the Congress enforced it by impeaching anybody who took a bunch of foreign government money, but I guess that system’s not working. That’s a serious problem.”

Good morning, and welcome to L.A. on the Record — our City Hall newsletter. It’s Noah Goldberg and David Zahniser, with an assist from Melissa Gomez and Connor Sheets, giving you the latest on city and county government.

The city of Los Angeles will shell out $120,000 for outside lawyers to fight a lawsuit filed by a councilmember challenging an ethics fine.

On Wednesday, the City Council voted unanimously to hire the law firm Hecker Fink LLP to represent the city’s Ethics Commission as it defends its decision to fine Councilmember John Lee $138,000 for allegedly violating city gift laws during a notorious 2017 trip to Las Vegas. Lee recused himself from the vote.

The city attorney’s office has said it can’t represent the Ethics Commission in Lee’s lawsuit because of a conflict of interest.

Lee was chief of staff to then-Councilmember Mitchell Englander when the two were plied with meals and alcohol, as well as hotel stays and gambling chips, by people seeking business with the city.

Lee, who represents the northwest San Fernando Valley, has claimed that he made a good faith effort to pay his own way. At a nearly $2,500 dinner that included Kobe beef, Maine lobster, Peking duck and sea bass, the only thing he ate was a spoonful of bird’s nest soup, he said at a hearing in his ethics case.

In 2020, Englander pleaded guilty to a single count of providing false information to the FBI and was sentenced to 14 months in prison. Three years later, he agreed to pay $79,830 to settle an Ethics Commission case focused on his own gift law violations.

The commission levied the fine against Lee in December, finding that he committed two counts of violating the city’s law against accepting gifts above a certain value, three counts of violating a law requiring that such gifts be disclosed to the public and five counts of misusing his city position.

David Tristan, the Ethics Commission’s executive director, had asked the council to provide at least $120,000 to defend against Lee’s lawsuit.

Lee declined to comment on the vote. In his lawsuit, he claimed that the statute of limitations had expired on the matters that were investigated by the Ethics Commission. He also accused the commission of overvaluing the share of gifts he partook in.

Lee is seeking to get the fine overturned.

More churn in the Karen Bass campaign

Turns out the shakeup in Mayor Karen Bass’ campaign did not end with the departure of Douglas Herman, her top strategist.

Herman told The Times on Wednesday that he stepped down due to “strategic differences” over the Nov. 3 runoff campaign against City Councilmember Nithya Raman. Bass’ team said on the same day that they had replaced him with Julie Chávez Rodriguez, who was campaign manager for the Joe Biden and Kamala Harris presidential campaigns in 2024.

A day later, political consultant Larry Grisolano confirmed that he too is no longer with the Bass reelection effort. His company, Thematic Campaigns, had been providing media and digital strategy.

On Friday, Berkeley-based research consultant Mike Rice told The Times that his firm, VR Research, had also left the Bass campaign, effective Wednesday. He declined to comment further.

Bass campaign spokesperson Alex Stack declined to discuss the departures. Asked if the campaign is in disarray, he said no, adding that Chávez Rodriguez’s hiring “is a really big get for us.”

“We’re getting a lot of positive feedback,” Stack said.

Still waiting on eviction defense contracts

In March, it appeared that a battle between City Atty. Hydee Feldstein Soto and the nonprofit running L.A.’s eviction defense program was over.

At the time, Feldstein Soto said she had concerns over awarding funds to the Legal Aid Foundation of Los Angeles, which has sued the city successfully over homelessness issues on multiple occasions. Feldstein Soto argued that contracts should not be awarded without rigorous reports and invoice review from Legal Aid and other nonprofits.

The City Council awarded the contracts anyway, funding the initial portion of a three-year, $177-million deal for Legal Aid and three other nonprofits to provide eviction defense, short-term rental assistance, tenant outreach and more as part of the city’s Stay Housed L.A. program.

But months later, Feldstein Soto’s office still hasn’t executed the contracts, frustrating tenants rights advocates and the nonprofits, which are struggling to pay their staff without the funds from the city.

“We’ve been really in a state of purgatory for over a year,” said Mike Dennis, senior director of housing justice at the Liberty Hill Foundation, which does tenant outreach as part of the city’s program.

Dennis said the failure to execute the contracts has created planning and operational uncertainty for the community-based organizations that Liberty Hill works with. Soon, some of them may face serious issues.

“We’re quickly approaching a point where the organizations are not going to keep being able to pay staff and absorb those costs,” he said. “The longer this goes on, the more likely we are to see contractions in the work.”

Earlier this month, Councilmember Ysabel Jurado put forward a motion asking the city attorney to explain why the contracts have not been executed. Jurado said the delay has left $17 million in funds unused.

“At the same time, the selected contractors struggle to maintain staffing without this funding, placing services for those at risk of homelessness in jeopardy,” she wrote in the June 2 motion.

Feldstein Soto argued in a June 15 response that Legal Aid has failed to agree to the “accountability and reporting requirements” needed to execute the contracts. She said those requirements were designed to make sure that taxpayer funds are spent properly.

“This office will continue to work with proposed contractors until the concerns are sufficiently addressed,” she said in a statement.

State of play

— UNHAPPY MEMORIES: Bass was out of town when the Boyle Heights warehouse fire erupted, which is giving voters a fresh reminder of her absence at the start of the Palisades fire. The situation could have an impact on her reelection campaign against Raman.

— HEADING TO THE BALLOT: A half-cent sales tax hike that would generate $345 million annually for the Los Angeles Fire Department will go before voters in the Nov. 3 election. The measure has been spearheaded by the city’s firefighter union, which gathered the signatures to qualify it for the ballot.

— D.A. DENIED: A judge has rejected Dist. Atty. Nathan Hochman’s request to freeze payments in the $4-billion sex abuse settlement approved by the Los Angeles County Board of Supervisors. The ruling boots Hochman from his brief stint in a civil courtroom as he moves forward with his criminal investigation into lawyers, recruiters and medical practitioners who may have submitted fraudulent claims.

— SOCIALIST SURGE: L.A.’s democratic socialists are looking to expand their power at City Hall yet again, setting their sights on the races for mayor and city attorney. Raman and city attorney hopeful Marissa Roy, both members of the L.A. chapter of the Democratic Socialists of America, are heading into the runoff after strong showings in the June 2 primary. (DSA-LA endorsed Roy but not Raman in the primary.)

— A BLOWOUT ELECTION: Property owners across the city voted overwhelmingly against increasing the assessment they pay to maintain streetlights. City leaders had hoped to use the funds — an additional $80 million a year — to speed up repairs and upgrade the city’s 225,000 streetlights.

— CLEARING THE LAND: Overgrown lots razed by the Eaton and Palisades fires pose an increasing wildfire threat to surrounding properties. The county Board of Supervisors recently passed a motion calling on county departments to develop a plan to clear vegetation in Altadena and Sunset Mesa.

QUICK HITS

• Where is Inside Safe? The mayor’s signature program to combat homelessness went to the area around the Wiltern Theatre in Koreatown this week. The area is represented by Councilmember Heather Hutt.
• On the docket next week: On Tuesday, the council takes up a package of ballot measures that would rewrite the City Charter. The changes cover topics such as voting rights for noncitizens, expanded park funding and City Council oversight of policies at the Los Angeles Police Department.

Stay in touch

That’s it for this week! Send your questions, comments and gossip to LAontheRecord@latimes.com. Did a friend forward you this email? Sign up here to get it in your inbox every Saturday morning.

May 15 (UPI) — The House Ethics Committee has launched an investigation into Rep. Chuck Edwards over allegations of creating a hostile work environment and engaging in sexual harassment.

Little information about the probe was made public.

In a brief statement issued Thursday, the committee said it was “reviewing allegations that Representative Chuck Edwards may have created or fostered a hostile work environment and engaged in sexual harassment in violation of the Code of Official Conduct or any other applicable standard of conduct.”

The committee said that its investigation and public disclosure do not indicate a violation has occurred.

Edwards told The Hill that he welcomes the investigation and plans “to comply fully with the committee.”

“I am confident the investigation will expose the facts, not politically motivated fiction,” he said.

The announcement follows recent reports that the committee was investigating Edwards, with Axios having been the first to report on the development.

Specifics of the allegations were not clear, but Politico earlier this week reported that he allegedly had an improper relationship with a subordinate as well as allegedly engaged in sexually harassment.

The investigation comes on the heels of two high-profile House resignations last month over sexual misconduct allegations.

Rep. Eric Swalwell, D-Calif., stepped down amid accusations of sexual misconduct and abuse, while Tony Gonzales, R-Texas, resigned after admitting he had an affair with a former aide who died by suicide.

Amid growing concern and anger about alleged abuses by members of the lower chamber, House Speaker Mike Johnson, R-Ky., and House Minority Leader Hakeem Jeffries, D-N.Y., announced Wednesday the creation of a bipartisan partnership between their parties’ women’s caucuses to combat workplace sexual misconduct in Congress.

Reps. Teresa Leger Fernandez, D-N.M., and Kat Cammack, R-Fla., were designated to lead the effort as respective chairs of the Democratic and Republican Women’s Caucuses in the House.

“To state the obvious, all women should feel comfortable and safe working in the halls of Congress,” Johnson said in a statement, adding that he is happy Cammack and Leger Fernandez “will lead this bipartisan partnership to find ways we can continue to make Capitol Hill safer for women and all staff.”