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Trump Goon Hit With Bombshell Probe Over Billion-Dollar Deal

Democrats are seeking answers about a government deal linked to Howard Lutnick.

Commerce Secretary Howard Lutnick has been accused of a potential ethics violation over a major rare earth minerals deal announced by the U.S. government that has links to his family-run financial firm.

A group of Democrats has written a letter, seen by The Wall Street Journal, to Cantor Fitzgerald chairman Brandon Lutnick, the commerce secretary’s son, expressing concerns about a $1.6 billion investment the Trump administration announced in January with minerals company USA Rare Earth.

Cantor Fitzgerald was headed by the commerce secretary from 1996 to 2025 before he handed the reins over to his children. Brandon and Kyle Lutnick were named chairman and executive vice chairman of the firm in May 2025.

Cantor Fitzgerald had previously worked with USA Rare Earth, including serving as the lead placement agent on the company’s private share offering while the $1.6 billion deal with the government was being arranged.

The group of Democrats—including Sens. Elizabeth Warren of Massachusetts, Chris Van Hollen of Maryland, and California Rep. Zoe Lofgren—is now demanding information from Cantor Fitzgerald to determine whether the firm benefited from its connections to Lutnick.

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The letter also seeks additional information, including why Cantor Fitzgerald was selected as the lead placement agent for USA Rare Earth, whether it was paid for those roles, and whether the firm and Commerce Department officials held any meetings together, the Journal reported.

A similar letter was also sent earlier this year to USA Rare Earth CEO Barbara Humpton, requesting details about the deal.

In the letter to Cantor Fitzgerald, the lawmakers claim the commerce secretary has so far “refused to provide answers” to their inquiries.

In response, a Cantor Fitzgerald spokesperson told the Daily Beast: “Cantor has a longstanding commercial relationship with USA Rare Earth that significantly pre-dates Secretary Lutnick’s service in government. Cantor supported USA Rare Earth in its public listing in early 2025 and, more recently, served as lead placement agent for the company’s PIPE financing.

“Cantor had no role in USA Rare Earth’s negotiations or financing arrangements with the U.S. government, including any matters involving Secretary Lutnick, who is fully divested from the firm.”

The $1.6 billion deal between the government and USA Rare Earth was finalized last month. The U.S. has been seeking to increase domestic production of rare earth metals and minerals to reduce its reliance on China.

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Last year, Beijing imposed severe restrictions on exports of rare earth metals and minerals—used in everything from military equipment to cars and smartphones—in retaliation for Donald Trump’s sweeping tariffs on China.

“USA Rare Earth’s heavy critical minerals project is essential to restoring U.S. critical mineral independence,” Commerce Secretary Howard Lutnick said in a January statement. “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.”

The Daily Beast has contacted Howard Lutnick’s office for comment.

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