Trump Fired Kimberly Guilfoyle for Influence Peddling That Pales Next to His Presidential Profiteering
· Reason
Kimberly Guilfoyle today resigned from her position as the U.S. ambassador to Greece shortly after the White House confirmed that President Donald Trump had asked her to do so. The main provocation seems to have been Guilfoyle's alleged influence peddling, which reportedly featured a request that Republican donor Eric Deters pay off her $100,000 American Express bill, in exchange for which she promised him special access to "Trump world."
The president signaled his displeasure on Monday, saying "we're looking at" axing Guilfoyle, his son's former girlfriend, because "we're not happy." On Tuesday, Trump added that "we didn't like what we were reading." That reaction is not surprising, since Guilfoyle would have been horning in on Trump's territory by trying to sell access and use her office for personal gain. That's his thing.
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Consider Trump's attempts to promote the memecoin that he launched three days before beginning his second term. That April, the top 220 $TRUMP holders were invited to "an intimate private dinner" with the president on May 22. The "top 25 coin holders" were promised "an Exclusive Reception before Dinner with YOUR FAVORITE PRESIDENT," plus a "Special VIP Tour" of the White House the next day. The coin's price, which after an initial surge had fallen dramatically since Inauguration Day, rose by more than 50 percent immediately after that announcement.
"Since the announcement, crypto investors around the world have raced to expand their holdings of $TRUMP," The New York Times reported 10 days before the dinner. "Certain buyers, in interviews and statements, have said they bought the coins or entered the dinner contest with the intention of securing an action by Mr. Trump to affect United States policy."
NBC reported that the coin investors who attended the dinner, which was held at the Trump National Golf Club in Sterling, Virginia, had collectively spent $394 million on $TRUMP. On average, that worked out to about $1.8 million a plate.
"This is my president that we're talking about, but I am willing to say that this gives me pause," Sen. Cynthia Lummis (R–Wyo.) said a few weeks before the dinner. "In abstract," Sen. Thom Tillis (R–N.C.) allowed, the event "is hard to understand." Sen. Lisa Murkowski (R–Alaska) drew an analogy: "I don't think it would be appropriate for me to charge people to come into the Capitol and take a tour."
Donald Sherman, executive director of Citizens for Responsibility and Ethics in Washington, was blunter. "This is one of the most blatant and appalling instances of selling access to the presidency I've ever seen," he said.
Compared to that episode, the controversy over the income that Trump's hotel in Washington, D.C., received from influence seekers during his first term might seem tame. But it raised similar ethical questions, albeit in a slightly more subtle way.
The Trump International Hotel's customers included Republican political organizations and a long list of trade groups, such as the National Mining Association, the Independent Petroleum Association of America, the National Confectioners Association, and the Vapor Technology Association, whose interests might be served by currying favor with the president. The hotel also attracted business from the governments of foreign countries, such as Kuwait, Bahrain, Saudi Arabia, Azerbaijan, Malaysia, and Romania, that likewise may have been investing in Trump's good will.
"Believe me, all the delegations will go there," a "Middle Eastern diplomat" told The Washington Post after Trump's election. "Why wouldn't I stay at his hotel blocks from the White House, so I can tell the new president, 'I love your new hotel!'" an "Asian diplomat" said. "Isn't it rude to come to his city and say, 'I am staying at your competitor'?" The Embassy of Kuwait, which had previously held its annual National Day celebration at the Four Seasons, reportedly canceled its reservation there and switched to the president-elect's hotel under pressure from the Trump Organization.
Trump saw no problem with any of this. "The law is totally on my side," he told The New York Times in November 2016. "The president can't have a conflict of interest." He reiterated that take at a press conference nine days before his inauguration. "I have a no-conflict situation because I'm president," he said.
Trump nevertheless said he would donate the profits from money spent by foreign governments at his hotels to the U.S. Treasury. But that solution did not address the money he was taking in from various domestic interest groups or his ability to enrich himself by encouraging Republican organizations or other federal officials to patronize his businesses.
One example of the latter: Vice President Mike Pence and his party stayed at Trump's golf resort in Doonbeg, Ireland, during an official trip in 2019. Although Trump insisted he "had nothing to do" with that decision, critics perceived a violation of the Domestic Emoluments Clause, which says the president may not receive additional compensation from the federal government beyond his official salary.
Trump later said he regretted his attempts to address conflicts of interest during his first term, including his promise that the Trump Organization would avoid new foreign business deals. "I prohibited [my sons] from doing business in my first term, and I got absolutely no credit for it," he told The New York Times 12 days before his second inauguration. "I didn't have to do that, and it's really unfair to them." The lesson he drew was that "nobody cared."
Consistent with that assessment, Trump has thrown all caution to the wind during his second term, capitalizing on his position to rake in millions of dollars by hawking all manner of presidentially branded merchandise, ranging from bibles to cologne; obtain a $400 million "palace in the sky" from the government of Qatar; extort $1 billion in pro bono legal work from disfavored law firms; earn billions from the same cryptocurrency industry he was simultaneously deregulating; and arrange a sweet IRS immunity deal that could save him more than $100 million in back taxes, interest, and penalties. Any worries about unseemly profiteering by Trump's family are long gone, as evidenced by federal contracts with businesses backed by his sons and highly lucrative foreign deals negotiated by his son-in-law.
Compared to all of that, the $100,000 that Guilfoyle allegedly sought in exchange for using her influence with the Trump administration to help Deters looks like pocket change. Her real sin, one suspects, was failing to offer her boss a piece of the action.
The post Trump Fired Kimberly Guilfoyle for Influence Peddling That Pales Next to His Presidential Profiteering appeared first on Reason Magazine.