How Elaine Chao used her Trump cabinet post to help her family make millions

AlterNet Logo

In January 2017, upon her confirmation as secretary of the Department of Transportation, Elaine Chao committed to separating herself from her family’s shipping interests. Looking back on the last four years, it’s clear she didn’t.

In an administration awash with emoluments and ethics concerns, it has mostly flown under the radar just how much Chao, who is married to Senate Republican leader Mitch McConnell, stood to gain financially from her position as secretary of transportation and how government watchdogs failed to challenge her repeated wrongdoings.

The Chao family business is deeply entangled with Beijing. The Chao family dry bulk ship company has borrowed hundreds of millions of dollars from Chinese banks, all of which are partly or fully owned by the communist regime. Continue reading.

Inspector General’s Report Cites Elaine Chao for Using Office to Help Family

New York Times logo

The Justice Department under the Trump administration declined to open a criminal investigation into the actions by Ms. Chao when she was transportation secretary.

WASHINGTON — While serving as transportation secretary during the Trump administration, Elaine Chao repeatedly used her office staff to help family members who run a shipping business with extensive ties to China, a report released Wednesday by the Transportation Department’s inspector general concluded.

The inspector general referred the matter to the Justice Department in December for possible criminal investigation. But in the weeks before the end of Trump administration, two Justice Department divisions declined to do so.

Ms. Chao, the wife of Senator Mitch McConnell of Kentucky, the Republican leader, announced her resignation on Jan. 7, the day after the Capitol riot. At the time of her departure, an aide to Ms. Chao said her resignation was unrelated to the inspector general’s investigation. Continue reading.

House committee launches investigation into Transportation Secretary Chao

The Hill logoThe House Oversight and Reform Committee on Monday launched an investigation into Transportation Secretary Elaine Chao over whether she is using her office to benefit herself and her family.

The investigation follows a series of reports alleging that Chao used her role in the Trump administration to boost Foremost Group, a shipping company founded by her father, and initially didn’t divest from stock in a major construction company.

“The Committee is examining your misstatements of fact, your actions that may have benefitted the company in which you continued to hold shares, and your compliance with ethics and financial disclosure requirements,” Oversight and Reform Committee Chairman Elijah Cummings (D-Md.) and Rep. Raja Krishnamoorthi (D-Ill.), chairman of the Oversight and Reform Subcommittee on Economic and Consumer Policy, wrote in a letter to Chao requesting documents.

View the complete September 16 article by Chris Mills Rodrigo and Cristina Marcos on The Hill website here.

Records: Chao government flights cost $94K

The newly released records do not indicate that anyone has raised red flags over Transportation Secretary Elaine Chao’s use of the FAA aircraft. Credit: Susan Walsh, AP Photo

Transportation Secretary Elaine Chao flew on Federal Aviation Administration planes rather than commercial flights on seven occasions between January and August 2017, newly released records show — including one flight to and around Europe that cost taxpayers an estimated $68,892 for her and five staffers.

All told, Chao’s flights on the FAA planes cost an estimated $93,977.84, the records show.

She appears to have halted the practice just as one of her fellow Cabinet members, then-Health and Human Services Secretary Tom Price, was facing increasing scrutiny over his use of private and military flights. Price resigned in September 2017 after POLITICO raised questions about the flight expenses, which totaled about $1.2 million.

View the complete September 18 article by Tanya Snyder on the Politico website here.