Kushner's Firm Profited From War-Linked Companies While He Served as Mideast Envoy

Jared Kushner, former President East envoy and son-in-law, held a significant stake through his private investment firm, Affinity Partners, in The Phoenix, an entity that invests in companies connected to Israel's military operations. According to a CNN investigation, Kushner avoided deeper scrutiny of potential conflicts of interest by serving as a volunteer envoy rather than an official government employee, which would have required financial disclosure. This arrangement, the report claims, created an unprecedented dual role in the Trump administration, merging profitable business with high-risk politics amidst a devastating war.

Phoenix's holdings, detailed in partial records, show investments of hundreds of millions of dollars in Israel's largest arms manufacturer, Elbit Systems, and at least eight other companies supplying the Israeli military with equipment ranging from drones to warships. These nine companies saw stock value increases last year, with many citing the Gaza war as a driver of demand. While Affinity Partners doesn't directly hold stakes in these nine firms, it benefits from Phoenix's profits.

He also presented plans for Gaza's reconstruction and tourism development. CNN found no evidence that Kushner's diplomatic activities directly influenced these investments, but his firm realized substantial profits when it sold a quarter of its Phoenix stake in July for over $340 million, a fivefold return on investment. Affinity Partners remains Phoenix's largest shareholder, with a 7.4% stake valued at over $1 billion as of July.

Kushner has publicly defended his investments, arguing that economic prosperity is the best path to lasting peace. However, critics like Cynthia Brown, Chief at Citizens for Responsibility and Ethics in Washington, question whether he is acting for U.S. taxpayers or his own financial interests, emphasizing that those profiting from government policy should not be the ones making policy decisions.

A representative for Kushner told CNN that he "never participated in or managed Phoenix's investment decisions" and had no involvement in purchasing, holding, or selling any of the nine identified companies, nor did he ever serve on Phoenix's board. However, Kushner himself told Forbes in September that he had "very active dialogue" with Phoenix management, meeting them every few weeks. His lawyer confirmed these conversations were ongoing about the company, market trends, and strategic opportunities, though the frequency decreased as Kushner became more involved in public service and diplomatic efforts.

The White House dismissed concerns about conflicts of interest, with spokesperson Anna Kelly calling it a "tired narrative" pushed by Democrats. She asserted that Kushner's private business activities are unrelated to his voluntary diplomatic work. Democrats, meanwhile, have called for new investigations, potentially intensifying if they regain control of the House of Representatives.