Elon Musk’s Man in the Treasury Is Still Holding Down His Day Job as Software CEO

This morning, staff at the US Treasury Division’s Bureau of the Fiscal Service (BFS) acquired an electronic mail asserting that Tom Krause, a software program govt and Elon Musk ally, was “appointed to carry out the delegated duties of the Fiscal Assistant Secretary.” That function was beforehand occupied by David Lebryk, who resigned after refusing to permit Musk’s so-called Division of Authorities Effectivity (DOGE) entry to delicate programs inside the Treasury Division. Although it had been beforehand reported that Krause, who had been referred to as a particular authorities worker, had obtained Lebryk’s outdated place, the electronic mail additionally notably states that Krause is “at present the CEO of Cloud Software Group.”

“Tom brings greater than 20 years of expertise main, constructing, and positioning software program and know-how corporations for worth and long-term success,” the electronic mail reads. “Tom is at present the CEO of Cloud Software Group which manages and operates a number of mission important enterprise software program companies.”

In response to questions from WIRED, a consultant for the firm mentioned that “Tom is the CEO of Cloud Software Group” and forwarded a duplicate of an electronic mail despatched to the firm’s staff final week in which Krause wrote, “in addition to my duties as CEO of Cloud Software Group, I’m advising the US Division of Treasury as a ‘particular authorities worker.’ I’m honored to serve our nation.” Critics consider Krause retaining his job in addition to serving in the authorities might be an enormous battle of curiosity.

Treasury didn’t instantly reply to a request for remark. Cloud Software Group didn’t reply to questions on whether or not Krause would proceed to attract a wage from the firm throughout his time with the Treasury.

In an affidavit filed Thursday in the lawsuit Alliance for Retired Individuals v. Division of the Treasury, Krause wrote, “Whereas in this Treasury function, I’ve additionally maintained my employment as Chief Government Officer (CEO) of Cloud Software Group, Inc., which [is] a privately held firm comprised of a number of enterprise software program companies. This association has been accredited by Treasury’s ethics workplace, who decided, based mostly on my function as an SGE, that this association was permissible.” In the similar affidavit, Krause mentioned, “I’ve not but assumed these duties” as Fiscal Assistant Secretary.

“I can not consider one other instance the place this has occurred, however I do suppose it is a part of a broader sample of the erasure of conflicts of pursuits inside the federal authorities,” says Don Moynihan, a professor of public coverage at the College of Michigan. “Federal staff cannot take greater than a $25 present from somebody who is likely to be making an attempt to affect their actions. On the different hand, their bosses are concurrently working personal corporations whereas additionally working components of the authorities that have an effect on their companies.”

Treasury in explicit, he says, may pose a battle of curiosity throughout industries as a result of “it impacts all the things.” And any alleged conflicts of curiosity is probably not restricted to simply Krause’s personal firm. “There’s a community of individuals coming from Silicon Valley and company America now which might be working collectively,” Moynihan says. “And so it is not nearly the battle of curiosity he may need along with his enterprise, however the manner in which he is located to assist that broader community that are actually successfully working the authorities.”