A federal watchdog has launched an investigation into Texas Republican Sen. Ted Cruz over a $35 million COVID reduction mortgage given to billionaire fracking brothers who had been additionally high Cruz marketing campaign contributors, Bloomberg reported.
Dan and Farris Wilks obtained the taxpayer-backed windfall despite the fact that their companies had been flush enough at the time to buy stakes in six different fracking firms, The Wall Street Journal reported late final yr.
Cruz reportedly helped persuade then-Treasury Secretary Steven Mnuchin and the Federal Reserve to vary the foundations for the Main Street Lending Program to incorporate operations just like the Wilks companies. The brothers then obtained a $35 million low-interest loan for ProFac Holdings LLC, a provider of pumping gear and providers, in line with information.
The Wilks brothers additionally donated $15 million to the tremendous PAC Keeping the Promise, which backed Cruz’s 2016 presidential marketing campaign.
The federal inquiry led by Special Inspector General for Pandemic Recovery Brian Miller was revealed in his workplace’s quarterly report that was launched Monday, Bloomberg reported. In the report, Miller referred to reporting that raised questions concerning the senator’s profitable push for adjustments within the mortgage program to “ensure access to capital” for the oil and gasoline trade.
While it “does not allege misconduct, it does concern management of the investments” by Mnuchin, Miller wrote in a letter final month to Brian Callanan, common counsel for the Treasury Department, which was included within the quarterly report.
Miller requested all correspondence between Cruz and Mnuchin regarding the adjustments to the lending program, a listing of firms affected by the modifications, particulars of the loans granted and the rationale for the adjustments.
Cruz’s workplace didn’t instantly reply to a request for remark from HuffPost. However, his workplace defended the Wilks brother mortgage to the Journal after the publication of its story, saying the senator’s work for fossil gas industries protected 300,000 jobs amid the pandemic.
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