The bipartisan group, spearheaded by Senator Elizabeth Warren and Representative Madeleine Dean, formally requested that acting inspector general Duane Townsend audit Lutnick’s conduct. At the heart of the controversy is Cantor Fitzgerald, the financial services firm Lutnick led for decades. While he stepped down as CEO in February, the firm owns the Newmark Group, a real estate brokerage deeply embedded in the data center leasing market. Although Lutnick was required to divest his stake, records indicate the transfer to his sons was delayed until October, following an ethics waiver from the Trump administration.
In section Newsroom
Democrats demand probe into Commerce Secretary’s AI data center deals
Twenty-five Democratic lawmakers are demanding an ethics investigation into Commerce Secretary Howard Lutnick, alleging he leveraged his federal position to promote AI data center projects that directly benefit his family’s financial interests. The inquiry focuses on potential violations of the divestment agreements signed upon his appointment.
Lawmakers point to a pattern of behavior where official Commerce Department policy appears to align with the private profitability of Newmark. Reports suggest Lutnick pressured foreign governments—specifically the United Arab Emirates and South Korea—to commit capital to U.S. data center infrastructure as part of broader trade and chip-export negotiations. Under these arrangements, Newmark has reportedly secured a record-breaking $25 billion in data center deals over the last year. Critics argue this intersection of public office and personal wealth is unprecedented in modern American history, potentially forcing consumers to bear the costs of rising energy consumption while the secretary’s family reaps the rewards.
Comments (0)
No comments yet. Be the first!