THE ITALIAN JOB
HOW A SIMMERING SPACEX BRIBERY SCANDAL COULD SERVE TRUMP HIS REVENGE ON MUSK
By Rob Waldeck and Joe Fionda
Fionda reported from Venice, Italy
A months-long bribery case launched by Italian prosecutors could provide the White House with justification to strip Elon Musk-linked businesses of federal contracts—fulfilling the “revenge” that Trump administration insiders are reportedly seeking against Musk. It could also serve as a means to execute Trump’s public threat, made via social media, to cut off federal contracts following his falling-out with Musk.
On Thursday Trump took to Truth Social to say that "the easiest way to save money in our Budget, Billions and Billions of Dollars is to terminate Elon’s Governmental Subsidies and Contracts."
On Saturday, Trump told NBC’s Kristen Welker that if Musk began supporting Democrats in the midterms he would be punished, saying, "if he does, he’ll have to pay very serious consequences for that."
The Italian bribery case could give Trump the ability to act on his threats against Musk’s businesses. Italian authorities allege that Andrea Stroppa, a Musk associate and SpaceX consultant, offered subcontracts in exchange for insider information on the Italian government’s evaluation of SpaceX’s $1.71 billion proposal to provide encrypted satellite communications to Italy’s police, diplomatic corps, and military.
The Italian case could have serious implications for SpaceX and Musk under U.S. law. The Foreign Corrupt Practices Act (FCPA) makes bribing foreign officials a federal crime, Law Professor Mike Koehler told The (b)(7)(D) in March. While rare, U.S. authorities could use the misconduct to impose a “contract bar” on Musk-led companies under criminal investigation, potentially cutting off billions in government deals.
“THIS ADMINISTRATION COULD ALWAYS START THE INVESTIGATIONS AGAIN”
Trump has never hesitated to wield the power of the presidency against his adversaries. Trump administration officials have pointed to two previous Biden-era investigations as potential avenues for targeting Musk.
According to Rolling Stone, one official texted reporters, stating, “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 following his dramatic fallout with the White House this week.
However, it remains uncertain whether the investigations mentioned by White House officials in the Rolling Stone report specifically involve a federal probe into SpaceX’s activities in Italy.
"I’M SENDING YOU A CONFIDENTIAL DOCUMENT, I ASK THAT YOU CLEAN IT.”
On October 11, 2024, Italian police closed in on Stroppa—seizing his devices and placing him on the Register of Suspects for complicity in corruption. Roman prosecutors specifically allege that Stroppa promised SpaceX subcontracts to an Italian naval officer to obtain inside information and documents on a government evaluation of a €1.5 billion ($1.71 billion) SpaceX proposal to provide secure satellite communications to Italy’s military, police, and embassies. As reported by The (b)(7)(D) in March, Italian prosecutors have seized Stroppa’s phones and are trying to establish Musk’s role in the bribery scheme from Stroppa’s texts with the billionaire. In one exchange, the Italian naval officer who turned over the documents to Stroppa messaged the Musk confidant, telling him “I’m sending you a confidential document, I ask that you clean it.”
In March, Italian law professor Stefano Maffei told The (b)(7)(d) that being placed on the Register of Suspects is merely a preliminary step before indictment. Notably, Musk has neither been indicted nor placed on the Register of Suspects.
In March, Professor Maffei told The (b)(7)(D) that the charges were preliminary, and suspects would only be formally charged with a crime if the prosecution later requested indictments. Maffei explained that in Italy, the prosecution of crimes falls under the judicial branch of government. Placing Stroppa on the list of suspects, Maffei told The (b)(7)(D), allowed police to seek the warrants to obtain his phones and electronic devices. According to Professor Maffei, Stroppa’s case is still in its initial stages. Neither Stroppa nor Musk has been formally charged with a crime.
ATTORNEY GENERAL PAM BONDI’S FCPA ENFORCEMENT DISCRETION
Law professor Mike Koehler told The (b)(7)(D) in March that a U.S. law, the Foreign Corrupt Practices Act, makes it a federal crime for a U.S. company or individual to bribe a foreign official. Professor Koehler said that the SpaceX bribery allegations “could perhaps be an FCPA issue” because SpaceX is a U.S. company and Musk is a U.S. citizen, making SpaceX and Musk “clearly subject” to the FCPA. Professor Koehler further explained that companies like SpaceX cannot use indirect means to provide things of value to foreign officials to influence actions on their behalf.
Koehler added that for executives of U.S. companies like SpaceX, prosecutors would only need to show “conscious disregard” for the possibility that illegal exchanges with government officials were occurring. Prosecutors would not need to prove that SpaceX officials directly ordered bribes to be paid. Koehler said that the key question is were any executives “aware or were willfully blind or acted with conscious disregard of the alleged conduct.”
Under new regulations issued by the Trump administration, any U.S.-led investigation of Stroppa, SpaceX or Musk for the alleged Starlink bribery scheme in Italy is now entirely in the hands of Trump’s Attorney General, Pam Bondi. An executive order empowers Bondi for 180 days to terminate, limit, or refuse to initiate any FCPA investigations—including any current or potential probe into the allegations against SpaceX. The executive order establishes a policy of “enforcement discretion,” placing the decision to continue any FCPA case squarely with Bondi, and even allows her to extend this discretionary period for an additional 180 days.
“I WOULD ASSUME SO”
During her telephone interview on Saturday, NBC News’ Kristen Welker asked Trump whether his relationship with Musk was over. The President replied, “I would assume so,” and added, “I have no intention of speaking to him.”
On Friday, reporters on Air Force One asked the President how seriously he was considering canceling Musk’s contracts. Trump did not rule it out, adding, “he’s got a lot of money. He gets a lot of subsidy, so we’ll take a look at that.” Trump then assured reporters that the process would be fair: “Only if it’s fair for him and for the country, I would certainly think about it. But it has to be fair.”