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Jared Isaacman does not have the governmental or scientific experience that is usually required to become NASA’s administrator. However, Isaacman qualifies for a major job under the Trump Administration because of his close ties to Elon Musk. Isaacman, through his payments company, owns a stake in Musk’s SpaceX. Isaacman also paid SpaceX $200 million for his private space flights that catapulted him to fame in 2021. Isaacman’s ties present a major conflict-of-interest in his role as NASA Administrator. SpaceX has received over $20 billion from NASA since its founding, and is angling for more money as the commercial space industry expands. Isaacman also has a separate conflict-of-interest through his defense company Draken International, which has received $100 million contracts from the Air Force. With Isaacman at NASA and Musk heading DOGE, the opportunities for self-enrichment and cronyism in the second Trump term are vast. Isaacman has also faced recent scrutiny into his businesses. A short seller report from 2023 accused Isaacman’s payments company Shift 4 of using “aggressive” accounting practices and suffering from a lack of board independence. Investors later sued the company for the supposed actions it took to prop up Isaacman’s financial situation. |
Through His Payments Company Shift 4, Jared Isaacman Owns A Stake In SpaceX. According to CNN, "Notably, Isaacman also has a financial stake in SpaceX. His company, Shift4 — in which he personally owns a 30% stake — purchased $27.5 million worth of SpaceX shares in February 2021, according to financial documents. As of June, Shift4 reported $10.8 million in gains from the investment. In an email to Shift4 employees, Isaacman said on Wednesday he plans to 'retain the majority of my equity interest in Shift4, subject to ethics obligations' if he is confirmed to the NASA post." [CNN, 12/6/24]
Jared Isaacman Has No Government Or Scientific Experience Except For “Close Ties” To Elon Musk. According to CNN, "President-elect Donald Trump’s pick for NASA administrator — tech billionaire and spaceflight trailblazer Jared Isaacman — is sending shock waves through the space community, eliciting excited responses from industry leaders who view Isaacman as a changemaker as well as concerns about conflicts of interest. Isaacman, who has twice traveled to space on private missions and has close ties to SpaceX CEO Elon Musk but lacks experience in government or academia, is an unorthodox selection. NASA administrators are typically selected from a pool of scientists, engineers, academics or public servants. Isaacman’s association with the space world, however, derives mostly from his extensive partnership with SpaceX, as a customer and collaborator." [CNN, 12/6/24]
2021: Jared Isaacman Paid Elon Musk’s SpaceX $200 Million For Private Mission To Space. According to BBC, "As well as the Polaris Dawn mission, in 2021 Isaacman bankrolled and led the first private, all-civilian team to ever orbit the Earth. That crew - named Inspiration4 - left on a SpaceX capsule from Florida and spent three days in space before splashing down successfully in the Atlantic Ocean. Time magazine estimated that Isaacman paid $200m to Musk for all four seats aboard the SpaceX craft." [BBC, 12/5/24]
SpaceX Has Received Almost $20 Billion From NASA Since 2008. According to USA TODAY, "The tech billionaire's aerospace company has benefited from nearly $19.8 billion in federal contracts since 2008. A majority of that money − $14.4 billion − went to NASA and $5.32 billion went to the Defense Department to pay for SpaceX rocket launches and satellites." [USA TODAY, 11/15/24]
2020: Draken International Received Contracts Worth Over $100 Million From The Air Force For Pilot Training. According to The War Zone, "Air Combat Command has now divulged the full set of awards it handed out on July 21, 2020, related to the initial round of Combat Air Force Contracted Air Support (CAF CAS) program. In addition to ATAC, Draken International was selected to provide aggressor support at Seymour Johnson AFB in North Carolina and at Kelly Field in Texas. In addition, TacAir has been selected for Kingsley Field Air National Guard Base in Oregon. Draken International will provide aggressor aircraft to help train new aircrews at the F-15E Strike Eagle Formal Training Unit (FTU) at Seymour Johnson and F-16 pilots at the FTU located at Kelly Field, the latter of which is technically part of Joint Base San Antonio-Lackland. It is anticipated that Draken will station Mirage F1s and its new Denel Cheetahs at the locations in support of the contract. The contract for Draken International at Seymour Johnson is worth $74.5 million and the one at Kelly Field is valued at $28.2 million." [The War Zone, 7/28/20]
April 2023: Short Seller Accused Jared Isaacman’s Shift 4 Payments Of “Aggressive” Accounting And Lack Of Board Independence. According to WFMZ, "Shift4, a Lehigh County-based financial technology company, responded Thursday to a short-seller's report that criticized the company's accounting and leadership. Shares in Shift4 fell Wednesday after Blue Orca Capital said the company used 'aggressive' accounting techniques. Blue Orca also said Shift4 founder Jared Isaacman, a billionaire, was a net seller of company shares in 2022, and that the company board and executive team lacks independence because it includes Isaacman's family and friends. The shares opened Wednesday at $67.90 and dropped as low as $57.88 after the Blue Orca commentary, before closing at $62.59, down 7.8%. At 10:08 a.m. Thursday, the shares were up 4.5% to $65.39. Shift4 shares are traded on the New York Stock Exchange under the ticker symbol FOUR." [WFMZ, 4/20/23]
Jared Isaacman’s Shift 4 Payments Faced Lawsuit Over Actions Taken To “Alleviate Financial Pressure On” Isaacman. Shift 4 Payments Inc. investors failed to adequately allege the payment processor took improper accounting and business actions to alleviate financial pressure on its CEO, a federal court ruled. The investors didn’t show the necessary level of intent for securities fraud because their chronology of facts undermines their theory about the company’s—and CEO-founder Jared Isaacman’s—motive, Judge Joseph F. Leeson Jr. said. The investors will have another chance to plead their case, Leeson said in an opinion docketed Thursday in the US District Court for the Eastern District of Pennsylvania.” [Bloomberg Law, 8/16/24]