FEDS RESTART FOREIGN BRIBERY PROSECUTIONS
NEW FOCUS ON CASES BROUGHT OVERSEAS COULD BRING SPACEX ITALIAN BRIBERY PROSECTION TO US
By Rob Waldeck and Joe Fionda
Fionda reported from Venice, Italy
Days after an acrimonious split between President Donald Trump and billionaire Elon Musk resulted in threats to Musk and his businesses, the Department of Justice has lifted a pause on Foreign Corrupt Practices Act cases. A new DOJ policy modifying enforcement cases could bring an Italian bribery case involving Musk’s SpaceX to the U.S.
On Tuesday, the Justice Department announced it was lifting the pause on Foreign Corrupt Practices Act (FCPA) prosecutions, which had been implemented by President Trump's executive order on February 10. A slimmed-down FCPA unit at Main Justice will now oversee cases, shifting its focus beyond cartels and transnational organized crime to include broader anti-competitive practices and national security concerns. The revised policy also prioritizes misconduct where foreign authorities are willing and able to investigate the same allegations—heightening the stakes for Andrea Stroppa, a close associate of Elon Musk and a SpaceX employee, who is currently under investigation for bribery in Italy.
Italian prosecutors allege that, beginning in April 2024, Italian entrepreneur Cristiano Rufini and Italian Navy Frigate Captain Antonio Masala sought subcontracts tied to a secret €1.5 billion ($1.71 billion) SpaceX proposal to provide secure satellite communications for Italy’s military, police, and embassies. According to reports from Italian state broadcaster RAI and daily Il Fatto Quotidiano, Masala approached Stroppa, offering him confidential details on the Italian government’s evaluation of SpaceX’s bid in exchange for a commitment to designate companies controlled by Rufini and Masala as subcontractors.
Prosecutors allege that Masala provided Stroppa with four government documents and confidential details from meetings of the Italian Military Cabinet and the Ministry of Defense regarding the SpaceX proposal. Further reports indicate that in June 2024, Masala also attempted to arrange a meeting between Stroppa and his commander, Lt. General Giovanni Gagliano.
On 11 October 2024, the Italian police closed in on Stroppa, seized his devices, and placed him on the Register of Suspects for complicity in corruption. In March, Italian law professor Stefano Maffei told The (b)(7)(d) that being placed on the Register of Suspects is preliminary to being indicted. At this point, Elon Musk has neither been charged nor placed on the Register of Suspects, which Maffei described as a list of those under investigation.
Stroppa could not be reached for comment. A lawyer for Iorio earlier declined to comment to The (b)(7)(D). A lawyer for Rossi earlier did not reply to a request for comment from The (b)(7)(D).
A lawyer for Rufini, Roberto De Vita, had not responded to The (b)(7)(D) at press time but earlier stated in response to questions that: “The so-called ‘Starlink file’ to date has not led to the identification of any evidence of incorrect conduct in relations with the companies of Elon Musk or Mr. Cristiano Rufini and Olidata … the professional, personal and as president of the company behavior of Mr. Rufini and his actions in institutional relations have always been characterized by transparency and fairness.”
Following last week’s dramatic split between Donald Trump and Elon Musk, Trump administration officials have signaled a willingness to revisit two unidentified investigations involving Musk. In an interview with Rolling Stone, one official stated, "this administration could always start the investigations again." Some of Trump's allies—including former White House Chief of Staff Steve Bannon—have openly called for federal probes into Musk in the wake of his high-profile fallout with the White House. Bannon has also advocated for the nationalization of SpaceX.
Trump has also issued threats against Musk and his businesses following their split. On Thursday, he posted on Truth Social, stating, "the easiest way to save money in our Budget, Billions and Billions of Dollars is to terminate Elon’s Governmental Subsidies and Contracts." In an interview on Saturday, Trump criticized Musk further, telling NBC’s Kristen Welker that if Musk began supporting Democrats in the midterms, "he’ll have to pay very serious consequences for that."
Elon Musk has not remained silent amid these attacks. Last week, he responded on X, formerly known as Twitter, to criticism from Steve Bannon, who had called for the nationalization of SpaceX. In a series of posts, Musk lashed out at Bannon, referring to him with a slur for people with intellectual disabilities and labeling him a "criminal" and a "communist".