Report: Watchdog investigates Ted Cruz into loan changes that helped billionaire donors
A federal watchdog has launched an investigation against Republican Senator from Texas Ted Cruz during a $ 35 million COVID relief loan given to the billionaire fracking brothers who were also the main contributors to the Cruz campaign, Bloomberg reported.
Dan and Farris Wilks received the taxpayer-backed windfall even though their businesses were flush enough at the time to buy stakes in six other hydraulic fracturing companies, the Wall Street Journal reported late last year.
Cruz would have helped to persuade the secretary of the Treasury at the time Steven mnuchin and the Federal Reserve to change the rules of the Main Street loan program to include operations such as Wilks Business. The brothers then got a $ 35 million low interest loan for ProFac Holdings LLC, a supplier of pumping equipment and services, according to records.
The Wilks brothers too donated $ 15 million to the super PAC Keeping the Promise, which supported Cruz’s presidential campaign in 2016.
The federal investigation led by Special Inspector General for Pandemic Recovery Brian Miller was revealed in his office’s quarterly report released on Monday, Bloomberg reported. In the report, Miller referred to reports that raised questions about the senator’s successful push for changes to the loan program to “ensure access to capital” for the oil and gas industry.
While he “does not allege misconduct, it relates to the management of investments” by Mnuchin, Miller wrote in a letter last month to Brian Callanan, general counsel for the Treasury Department, which was included in the report. quarterly.
Miller requested all correspondence between Cruz and Mnuchin regarding changes to the loan program, a list of businesses affected by the changes, details of loans granted and the rationale for the changes.
Cruz’s office did not immediately respond to a request for comment from HuffPost. However, his office defended Brother Wilks’ loan to the Journal after his article was published, saying the senator’s work for the fossil fuel industries was protecting 300,000 jobs amid the pandemic.
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