Watchdog: Trump’s Billionaire Dep. Defense Sec. Pick Oversaw Major Defense Contractor Fraud as President Claims to Care About Government Fraud

Washington D.C. – Today the U.S. Senate Armed Service Committee is holding a confirmation hearing for President Trump’s choice for Deputy Defense Secretary, Stephen Feinberg, the billionaire co-founder of private equity firm Cerberus Capital Management who has zero military experience but does have ample experience financing sketchy defense contractors like Dyncorp, which has paid out at least $9 million stemming from lawsuits in which the U.S. Department Of Justice alleged it had defrauded the U.S. Government. Feinberg’s firm is also notorious for stripping major companies for parts for profit, having bankrupted giants like Chrysler, Remington, and Steward Health System — and receiving the dubious honor of orchestrating the most significant mass layoffs and OSHA violations among companies owned by private equity firms last year. In one glaring example, when Feinberg’s Cerberus bankrupted Hospital Chain Steward Health Care System, 30,000 workers were fired who were serving over 2 million patients a year. 

“A vulture capitalist who deliberately bankrupted companies and laid off workers to enrich wealthy investors, who oversaw a defense contractor that defrauded the U.S. government, and who never served a day in uniform should not be anywhere near a leadership position with the Department of Defense. His nomination only serves to double down on the unqualified leadership President Trump has chosen for national security positions,” said Accountable.US Executive Director Tony Carrk. “Stephen Feinberg’s nomination confirms that President Trump does not care about rooting out waste, fraud and abuse in the government. It’s become an undeniable pattern of President Trump nominating top officials in his administration that are severely conflicted and prone to using their power to enrich themselves and clients at the expense of American working people.” 

###