By Pam Martens and Russ Martens: February 3, 2025 ~
Elon Musk
Elon Musk is the billionaire CEO of the publicly-traded EV company, Tesla. As such, under corporate law, he owes a Duty of Loyalty to Tesla. Notwithstanding this well-established law, Musk is engaged in an array of other corporate endeavors outside of Tesla, including being the CEO of SpaceX, a private rocket company.
SpaceX is a major federal contractor to NASA and the Department of Defense. See our report: The U.S. Government Is Plowing Billions into SpaceX, Overlooking Drug Use, Sex Parties, and Elon Musk’s Coziness with Putin.
Now, the New York Times, Wall Street Journal, Bloomberg News, and a host of other media outlets are reporting that Musk has used his 2-week old position as the head of a Donald Trump faux agency – the Department of Government Efficiency (DOGE) – which Trump created out of thin air last month by Executive Order, to have his DOGE operatives gain access to the U.S. Treasury’s $6 trillion payment system and snoop on its payments. This means that Musk’s DOGE hires could potentially access confidential information on government contract payments made to Musk’s competitors as well as highly confidential payments related to national security.
There are media reports this morning that Musk has begun to cancel payments to some federal contractors.
One of the individuals engaged in this snooping on behalf of Musk, according to reporting at the New York Times, is Tom Krause, the CEO of Cloud Software Group, which describes itself as “Developer of enterprise infrastructure software” whose platform encompasses, among other things, “business intelligence.”
Krause is still listed at the website of Cloud Software Group as its current CEO, as well as using that same title on his personal LinkedIn page. So how, exactly, did he gain security clearance to snoop on this vast U.S. government payment system. Why is the Board of Directors of Cloud Software Group allowing him to engage in this legally dubious undertaking?
Cloud Software Group’s major owners include Vista Equity Partners and Elliott Investment Management, according to an interview with Krause at SpencerStuart.
The founder, Chairman and CEO of Vista Equity Partners is billionaire Robert F. Smith, whose net worth is pegged at $10.8 billion according to Forbes. In 2020, during the first Trump administration, Smith was charged by the U.S. Department of Justice with engaging in a massive 15-year international tax fraud scheme. Smith was given a non-prosecution agreement and settled the matter for $139 million after cooperating with prosecutors.
The other major co-owner of Krause’s firm, Elliott Investment Management, is the giant hedge fund founded by billionaire Paul Singer, who remains at Elliott as President, Co-Chief Executive Officer, and Co-Chief Investment Officer. Singer gave the Trump-supporting Make America Great Again Inc. PAC $5 million in one check in August of last year.
In addition, and notably, Singer is also Chairman of the Manhattan Institute for Policy Research, a right-wing think tank. William Barr, one of Donald Trump’s Attorneys General during his first term as President, is a member of the Board of Trustees of the Manhattan Institute. Megadonors to Trump and Republicans, including hedge fund titan John Paulson and former Education Secretary Betsy DeVos in Trump’s first term, also serve on the Manhattan Institute’s Board of Trustees.
Senator Ron Wyden, the Ranking Member of the Senate Finance Committee has sent a letter to Trump’s recently confirmed U.S. Treasury Secretary, Scott Bessent, raising national security concerns about the snooping by DOGE inside the Treasury’s payment system and demanding answers in short order.
