NYT: Elon Musk and SpaceX Face Federal Reviews After Violations of Security Reporting Rules

[Dennis Donovan]

NYT - (archived: https://archive.ph/DStu2 ) Elon Musk and SpaceX Face Federal Reviews After Violations of Security Reporting Rules

Federal agencies have opened at least three reviews into whether the company and its leader complied with disclosure protocols intended to protect state secrets, people with knowledge of the matter said.

By Kirsten GrindEric Lipton and Sheera Frenkel
Kirsten Grind and Sheera Frenkel reported from San Francisco, and Eric Lipton from Washington.

Dec. 17, 2024

Elon Musk and his rocket company, SpaceX, have repeatedly failed to comply with federal reporting protocols aimed at protecting state secrets, including by not providing some details of his meetings with foreign leaders, according to people with knowledge of the company and internal documents.

Concerns about the reporting practices — and particularly about Mr. Musk, who is SpaceX’s chief executive — have triggered at least three federal reviews, eight people with knowledge of the efforts said. The Defense Department’s Office of Inspector General opened a review into the matter this year, and the Air Force and the Pentagon’s Office of the Under Secretary of Defense for Intelligence and Security separately initiated reviews last month.

The Air Force also recently denied Mr. Musk a high-level security access, citing potential security risks associated with the billionaire. Several allied nations, including Israel, have also expressed concerns that he could share sensitive data with others, according to defense officials.

Internally, SpaceX has a team that is expected to ensure compliance with the government’s national security rules. Some of those employees have complained to the Defense Department’s Office of Inspector General and other agencies about the lax reporting, which goes back to at least 2021, four people with knowledge of the company said. SpaceX was awarded at least $10 billion in federal contracts with the Pentagon and NASA from 2019 to 2023, making it a major contractor.

Mr. Musk is facing scrutiny as he wields increasing power around the world through his myriad businesses — particularly SpaceX but also the social media company X and the electric carmaker Tesla. While the 53-year-old has long blown past norms and conventions that do not suit him or his companies, the stakes are arguably higher when it comes to national security matters.

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[in2herbs]

1. Where has Eloon parked his billions? The FDIC only insures $250,000 of a deposit. How many overseas

accounts does he have? Or, are his billions only non-liquid?

Same goes for 45. IMO anyone who wants to be president should invest all of his money in the U.S. and no overseas accounts.

[WarGamer]

2. Is anyone else laughing?

In January this will disappear.

[BannonsLiver]

4. Do you want it to disappear?

I sense some giddiness.

[City Lights]

3. He is above the law, like the schmuck for whom he

bought the presidency. He can do whatever he wants without having to worry about any consequences.

[Ursus Rex]

5. Lots of investigations into Muck and his properties, there's a detailed graphic circulating online

It looks like one of those "conspiracy walls" with multiple pending or potential investigations each into X, Tesla, SpaceX, and IIRC, Musk himself. His $200-300 million investment in the election will have a fantastic ROI when they're dropped or watered-down, is my guess.

Edit: Robert Reich and others have posted the graphic on FB and X, it's really eye-opening.

[uponit7771]

7. Melon Usk has been violating SEC rules for years