Judge probes whether Musk settlement with Trump admin is tainted by corruption
Summary
A federal judge questioned a $1.5 million settlement between Elon Musk and the Securities and Exchange Commission (SEC), raising concerns about possible special treatment by the Trump administration. The judge asked for more details on how the deal was made, especially why the payment would come from a trust linked to Musk and not Musk directly.Key Facts
- Elon Musk agreed to pay a $1.5 million fine to the SEC to settle a lawsuit about late disclosure of his Twitter shares.
- The original SEC lawsuit sought at least $150 million in penalties.
- Musk bought 9% of Twitter in 2022 but did not report it within 10 days, as required by law.
- The SEC claims Musk’s delay allowed him to buy shares at lower prices, harming other shareholders.
- The settlement requires court approval, and Judge Sparkle Sooknanan expressed doubts and asked for more information by June 1.
- The trust linked to Musk will pay the fine, not Musk personally.
- The judge noted the SEC appeared surprised that settlement talks had started, calling that a "red flag."
- The SEC sued Musk in January 2025, shortly before President Biden left office.
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