This story was originally published by ProPublica. Republished under a CC BY-NC-ND 3.0 license.

In late November in Jamnagar, India, the scions of two of the most powerful families in the world stood face-to-face. On one side was 30-year-old Anant Ambani, son of one of the richest men in Asia. On the other was Donald Trump Jr. For months, the Trump administration had been on the offensive against the sprawling Ambani energy empire, placing it at the center of an escalating tariff campaign against India. But after Trump Jr. touched down, the two men toured the Ambanis’ private zoo, and at night they performed a Gujarati folk dance, grinning as they moved together to the music.

Four months later, an obscure Texas startup called America First Refining announced that it had received a nine-figure investment from the Ambanis’ company. The deal puzzled numerous energy investors familiar with the project, which aims to build the first major new oil refinery in the U.S. in about 50 years. The company is run by a serial entrepreneur with a history of bankruptcy and lawsuits alleging fraud. After more than a decade of failed attempts to raise money, blown deadlines and rebrands, it had been floundering.

America First Refining’s unexpected breakthrough came after it forged a previously unreported relationship with Trump Jr., who secretly acquired a stake in the startup, according to records and seven people familiar with the company. The new details reveal the role the president’s son has played in a theme of Trump’s second term: overseas investors with interests before the administration putting money into the Trump family’s business interests.

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Over the past year and a half, Trump Jr. has amassed a fortune from stakes in companies ranging from crypto startups to a drone business to a firearms retailer. Some firms tied to the president’s son have received contracts or other support from the federal government, part of what critics describe as a run of Trump family self-dealing. In December, Forbes estimated that Trump Jr.’s net worth had rocketed from roughly $50 million to $300 million since the election. But the Forbes figures were based on the investments that have been publicly disclosed. The America First Refining episode suggests there is much about the family business that remains secret.

The size of Trump Jr.’s stake in America First Refining and what he paid for it remain unclear. Top executives at the startup have also said that they speak regularly with Trump Jr., according to a person close to the company. And after the Ambani investment was announced, Trump Jr.’s personal lawyer took credit on social media for playing a part in the deal.

America First Refining has flexed its Trump Jr. connections during pitch meetings with foreign officials. Early last year, Trump Jr. joined the company’s leadership for a meeting in South Florida with potential investors from Saudi Arabia, according to two people familiar with the matter. Another foreign government official pitched on the project told ProPublica that the company’s team emphasized they had backing from the Trump family and suggested that an investment would help with White House access.

The Ambanis’ investment coincided with the family’s securing major U.S. policy wins that their company, Reliance Industries, had been lobbying for. “Reliance Goes From Trump Foe to Friend With Refinery Pledge,” ran the Bloomberg headline after the deal was announced. Reliance’s intent with the deal was to “smooth out” tensions between the U.S. and India, the outlet reported.

A Trump Jr. spokesperson said that Trump Jr. “has no operational involvement in AFR and is simply a passive minority investor in an American company that aligns with his worldview.” 

“The entire premise of this story relating to Don is false,” the spokesperson said, adding, “Don does not interface with the Federal Government on behalf of any company that he invests in or advises.” ProPublica did not find evidence Trump Jr. was aware of refinery executives’ suggesting that an investment would help with White House access. 

In response to detailed questions, a spokesperson for America First Refining said, “The claims in this story are false,” but declined to specify what they were referring to. The company’s CEO previously denied wrongdoing in the lawsuits against him reviewed by ProPublica, and the suits were either settled or dropped.

The Ambani family had long been cultivating its relationship with the Trumps. Reliance paid $10 million to the Trump Organization in 2024 as a “development fee” for a project in Mumbai, according to the president’s financial disclosure. (Despite the payment, Reliance has not yet announced a Trump project. Reliance told ProPublica that “the real estate project is real” and “remains under development.”) Ivanka Trump attended Anant Ambani’s wedding party in India that year, where guests were treated to a Rihanna concert. Anant’s father, Mukesh — who is worth an estimated $90 billion and lives in a 27-story home — came to Washington, D.C., for Trump’s second inauguration, posing with the president at a private reception.

But by the summer of 2025, the family was under attack from the White House. Since Russia invaded Ukraine in 2022, Reliance had reportedly made billions in profits by purchasing vast quantities of Russian oil at a discount. In August, as Trump grew frustrated with his administration’s struggles to bring the war to an end, the president doubled his tariffs on India to 50%. The move was explicitly designed to force companies like Reliance to stop buying Russian oil. White House trade adviser Peter Navarro publicly assailed “India’s politically connected energy titans” for “funding Putin’s war machine,” widely read as a reference to the Ambanis.

Amid this tension, Trump Jr. visited Anant Ambani on his November trip to India. At the end of the trip, Trump Jr.’s personal lawyer commented at a business conference in Miami: “I had a nice closing this morning with Don Trump Jr., who’s flying back from India today.” (The following week, the Texas startup — then called Element Fuels — filed paperwork to create America First Refining LLC. In an email, the attorney, John Willding, told ProPublica that there was “no transaction in India or with an Indian company that I was ever involved with.”) 

Anant Ambani, who helps run Reliance’s energy business, personally worked on the Texas refinery deal for months before it was announced, a major Indian newspaper later reported.

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As the Ambanis quietly finalized their deal with America First Refining, U.S.-Indian relations appeared to warm. In February, the Trump administration struck a trade deal with India, dramatically lowering tariffs, and also reportedly gave Reliance a license to buy Venezuelan oil. When the Iran war broke out and rocked global energy markets, the U.S. gave India a sanctions waiver to buy Russian crude. (The waiver was later expanded to all countries.) 

In response to ProPublica’s questions, the White House said that “there are no conflicts of interest.” Reliance did not answer ProPublica’s questions about Trump Jr.’s and Anant Ambani’s roles in the investment deal, but said in a statement that the company did not receive “any unique or preferential treatment” from the U.S. government. 

“There is no connection between Reliance’s investment in AFR and any unique measures associated with general U.S. trade, tariff, sanctions or licensing outcomes,” Reliance said. “The investment was evaluated and approved on its commercial merits, strategic fit and long-term value creation potential.”

In March, President Trump personally announced Reliance’s deal with the Texas startup on Truth Social, thanking the Ambani company for its “tremendous Investment.”  

After the announcement, Willding, the Trump Jr. lawyer, shared the news on LinkedIn: “Just so proud to have been part of this one.”

Willding rowed back his claim in an email to ProPublica. “I have never worked for or advised AFR and had zero involvement in their deal with Reliance Energy,” he said. “I simply saw the press release and was excited for them.” America First Refining’s spokesperson called Willding’s comment “moronic and false.”

In June 2025, Willding registered a new entity in Wyoming called TX Fuels, LLC, listing the company’s address as Trump Jr.’s mansion in Jupiter, Florida. In his email, Willding said his “only involvement in AFR was handling the legal paperwork” for the Trump Jr. LLC’s investment in the startup.

Trump Jr. first hired Willding in May 2021, according to interviews the lawyer has given. A corporate deal lawyer in Dallas, Willding has referred to himself as “outside business counsel to the Trump family” and has said he talks to Trump Jr. or Eric Trump almost daily. A former Bill Clinton and Barack Obama voter who fell hard for MAGA, the attorney has installed a portrait of President Trump over the mantel in his living room.

Willding’s practice has boomed during the second Trump administration, bringing the lawyer to Argentina, Saudi Arabia and South Korea. “Everybody in the world wants to do business with the United States right now,” Willding said at a conference in June 2025. “Every company wants to do business with the Trump family.”

There are other fingerprints of the Trump world on the refinery deal. 

Howard Lutnick’s firm Cantor Fitzgerald — which his sons took over when Lutnick became Trump’s commerce secretary — is working as the financial adviser to America First Refining, including on the Ambani investment deal, Cantor Fitzgerald announced. (Cantor Fitzgerald declined to comment.)

And the Trump administration played a direct role helping America First Refining find potential foreign investors, according to public comments from the company’s CEO, John Calce. “We have received support from the White House,” he told a local news outlet. The National Energy Dominance Council, led by the interior and energy secretaries, has “helped us with, candidly, introducing us and helping us meet some of these people overseas,” Calce said on an industry podcast. 

America First Refining has recently explored going public, according to three people close to the company. That could allow its current investors to start cashing out even if the refinery never gets built — a milestone many energy industry insiders still view as a long shot. Reliance made its investment in the startup at a valuation of at least $1 billion, according to America First Refining’s announcement.

Building a refinery at the Port of Brownsville on the Gulf Coast has been Calce’s mission for a decade. A former Yale offensive lineman, he started his career as a high school football coach after an unsuccessful attempt to make the NFL and now describes himself as a “lifelong entrepreneur.” 

The project has been serially delayed, out of money, rebranded and trailed by angry former business partners. At one point, Calce’s companies were being sued simultaneously by eight other firms. In 2022, during bankruptcy proceedings for an earlier iteration of the project, the trustee appointed to impartially oversee the case sued Calce too. The trustee alleged that Calce and other insiders had improperly siphoned away cash and other assets. (Calce denied wrongdoing. The case was ultimately settled.)

During the Biden administration, as the company sought financial support from the Department of Energy, it pitched itself as a climate-friendly green project that would also help “people of underrepresented social demographics” in Brownsville, according to records from that period. The company failed to get enough money from outside investors, and the planned construction was delayed. 

By the company’s own estimate, building the refinery will take years and cost $3 billion to $4 billion. Even if it’s built, profitability could be hard to achieve. Many energy investors told ProPublica there’s a reason the U.S. hasn’t seen a major new refinery in decades. “Refineries cost a lot of money and essentially make pennies on the dollar,” said Ed Hirs, an energy economist in Houston. “Wall Street is not going to finance a new refinery.”

Even after the start of the second Trump administration, the company was in jeopardy, according to interviews and documents. It laid off workers last year, and, by late 2025, with delays continuing to plague the refinery, officials at the Port of Brownsville believed the project looked to be dead, according to records reviewed by ProPublica.

That has not stopped Calce and his team from making grandiose claims to the public. Earlier this year, a website went live for another Calce company called Brownsville Energy Storage Terminals. It claims to have a far-flung network of oil storage terminals in places like the Netherlands and Singapore, more than 850 employees and a C-suite of experienced energy executives. But ProPublica could find no evidence that the executives are real people or that the storage terminals actually exist. The phone numbers on the website are also currently listed online as the contacts for a Houston baklava caterer, a Dallas-area taxi service and an OB-GYN office. The numbers are dead.

America First Refining’s political ties, though, may have boosted its standing with Texas state regulators. In February, shortly before the Ambani investment became public, the company sought an extension on its permit from the Texas Commission on Environmental Quality. 

Inside the state agency, emails obtained by ProPublica show, officials scrambled to approve the request.

“Need to get this one logged and processed asap,” wrote one official.

“You are going to have to do this one. I will explain why in person in a few,” wrote another. “You can guess if you check out the name.”

America First Refining got its approval the next day. A spokesperson for the Texas agency did not address questions about the emails. “This request was processed quickly due to the quality of information provided,” the spokesperson said.

This story was originally published by ProPublica. Republished under a CC BY-NC-ND 3.0 license.

Homeland Security Secretary Kristi Noem misled Congress on Tuesday about the powers of her controversial top aide Corey Lewandowski, according to records reviewed by ProPublica and four current and former DHS officials.

Lewandowski has an unusual role at DHS, where he is not a paid government employee but is nonetheless acting as a top official, helping Noem run the sprawling agency. For months, members of Congress have asked the agency to detail the scope of his work and authority. 

At a Senate Judiciary Committee hearing on Tuesday, Sen. Richard Blumenthal, D-Conn., asked Noem whether Lewandowski has “a role in approving contracts” at DHS. Noem responded with a flat denial: “No.”

But internal DHS records reviewed by ProPublica contradict Noem’s Senate testimony. The records show Lewandowski personally approved a multimillion-dollar equipment contract at the agency last summer. 

That was not a one-off. Lewandowski has approved numerous contracts at DHS and often needs to sign off on large ones before any money goes out the door, the current and former department employees said.

Last year, Noem imposed a new policy that consolidated her and her top aides’ power over all spending at DHS, requiring that she personally review and approve all contracts above $100,000. Before the contracts reach Noem, they must be approved by a series of political appointees, who each sign or initial a checklist sometimes referred to internally as a routing sheet. Typically, the last name on the checklist before Noem’s is Lewandowski’s, the DHS officials said.

Under federal law, it is a crime to “knowingly and willfully” make a false statement to Congress. But in practice, it is rarely prosecuted.

In a statement, a DHS spokesperson reiterated Noem’s claim. “Mr. Lewandowski does NOT play a role in approving contracts,” the spokesperson said. “Mr. Lewandowski does not receive a salary or any federal government benefits. He volunteers his time to serve the American people.” Lewandowski did not respond to a request for comment. 

Several news outlets, including Politico, have previously reported on aspects of Lewandowski’s involvement in contracting at DHS. 

There have been widespread reports of delays caused by the new contract approval process at the agency, which has responsibilities spanning from immigration enforcement to disaster relief to airport security. DHS has asserted that the review process saved taxpayers billions of dollars. 

A similar sign-off process exists for other policy decisions at DHS. One of the checklists, about rolling back protections for Haitians in the U.S., emerged in litigation last year. It featured the signatures of several top DHS advisers. Under them was Lewandowski’s signature, and then Noem’s.

Lewandowski is what’s known as a “special government employee,” a designation historically used to let experts serve in government for limited periods without having to give up their outside jobs. (At the beginning of the Trump administration, Elon Musk was one, too.) Special government employees have to abide by only some of the same ethics rules as normal officials and are permitted to have sources of outside income.

Lewandowski has declined to disclose whether he is being paid by any outside companies and, if so, who.

This story was originally published by ProPublica. Republished under a CC BY-NC-ND 3.0 license.

On Oct. 2, the second day of the government shutdown, Homeland Security Secretary Kristi Noem arrived at Mount Rushmore to shoot a television ad. Sitting on horseback in chaps and a cowboy hat, Noem addressed the camera with a stern message for immigrants: “Break our laws, we’ll punish you.” 

Noem has hailed the more than $200 million, taxpayer-funded ad campaign as a crucial tool to stem illegal immigration. Her agency invoked the “national emergency” at the border as it awarded contracts for the campaign, bypassing the normal competitive bidding process designed to prevent waste and corruption.

The Department of Homeland Security has kept at least one beneficiary of the nine-figure ad deal a secret, records and interviews show: a Republican consulting firm with long-standing personal and business ties to Noem and her senior aides at DHS. The company running the Mount Rushmore shoot, called the Strategy Group, does not appear on public documents about the contract. The main recipient listed on the contracts is a mysterious Delaware company, which was created days before the deal was finalized.

No firm has closer ties to Noem’s political operation than the Strategy Group. It played a central role in her 2022 South Dakota gubernatorial campaign. Corey Lewandowski, her top adviser at DHS, has worked extensively with the firm. And the company’s CEO is married to Noem’s chief spokesperson at DHS, Tricia McLaughlin.

The Strategy Group’s ad work is the first known example of money flowing from Noem’s agency to businesses controlled by her allies and friends.

Government contracting experts said the depth of the ties between DHS leadership and the Strategy Group suggested major potential violations of ethics rules.

“It’s corrupt, is the word,” said Charles Tiefer, a leading authority on federal contract law and former member of the Commission on Wartime Contracting in Iraq and Afghanistan. He said that the Strategy Group’s role should prompt investigations by both the DHS inspector general and the House Oversight Committee. 

“Hiding your friends as subcontractors is like playing hide the salami with the taxpayer,” Tiefer added.

Federal regulations forbid conflicts of interest in contracting and require that the process be conducted “with complete impartiality and with preferential treatment for none.”

“It’s worthy of an investigation to ferret out how these decisions were made, and whether they were made legally and without bias,” said Scott Amey, a contracting expert and general counsel at the watchdog group Project on Government Oversight.

The revelations come as the amount of money at Noem’s disposal has skyrocketed. The so-called Big Beautiful Bill granted DHS more than $150 billion, and Noem has given herself an unusual degree of control over how that money is spent. This summer, she began requiring that she personally approve any payment over $100,000.

Asked about the Strategy Group’s work for DHS, McLaughlin, the agency spokesperson, said in an interview, “We don’t have visibility into why they were chosen.”

“I don’t know who they’re a subcontractor with, but I don’t work with them because I have a conflict of interest and I fully recused myself,” she said. “My marriage is one thing and work is another. I don’t combine them.” Her husband, Strategy Group CEO Ben Yoho, didn’t respond to questions.

In a written statement, DHS said, “DHS has no involvement with the selection of subcontractors.” They added that the Strategy Group does not have a direct contract with the agency, saying “DHS cannot and does not determine, control, or weigh in on who contractors hire.” 

Contracting experts said that agencies can and do sometimes require that subcontractors be approved by officials. It’s not clear how much the Strategy Group has been paid.

This is not the first time that the Strategy Group has gotten public money through a Noem contract. As governor of South Dakota in 2023, her administration set off a scandal by hiring the Ohio-based company to do a different ad campaign, paying it $8.5 million in state funds. While the state said the contract was done by the book, a former Noem administration official told ProPublica that Noem quietly intervened to ensure the Strategy Group got the deal. ProPublica granted some people anonymity to discuss the deals because of their sensitivity.

The firm also paid up to $25,000 to one of Noem’s closest advisers in South Dakota, previously unreported records show. (The adviser, 28-year-old Madison Sheahan, now serves at DHS as the second-in-command of Immigration and Customs Enforcement. Sheahan didn’t respond to questions about why she was paid.)

The DHS ad that the company filmed at Mount Rushmore has aired during “Fox & Friends” in recent days. Executives from the Strategy Group traveled to the shoot and hired subcontractors to fill out the film crew, according to records and a person involved in the campaign. The ad’s aesthetic sits somewhere between a political campaign ad and a Jeep commercial as Noem tells would-be immigrants to “come here the right way.”

“From the cowboys who tamed the West to the titans who built our cities,” Noem says, as images of Trump Tower in Chicago and Trump raising his fist after the assassination attempt last year flash on the screen, “America has always rewarded vision and grit.” Noem continues: “You cross the border illegally, we’ll find you.”

Watch the DHS Ad Filmed at Mount Rushmore

The ad is the latest in a campaign that Noem debuted in February, just a few weeks after she took charge of DHS. “Any delay in providing these critical communications to the public will increase the spread of misinformation, especially misinformation by smugglers,” the agency wrote, explaining why it was skipping the competitive bidding process normally required for government contracts. The initial ads featured Noem thanking Trump for securing the border.

The contracts total $220 million so far, leading the DHS ad budget to triple in the most recent fiscal year, according to Bloomberg. The lion’s share of ad contracts is typically used to buy TV airtime or spots on social media. Advertising firms make money by taking an often-hefty commission. Federal records show the contracts have gone to two firms. One is a Republican ad company in Louisiana called People Who Think, which has been awarded $77 million. 

But the majority of the money — $143 million — has gone to a mysterious LLC in Delaware. The company was created just days before it was awarded the deal.

Little is known about the Delaware company, which is called Safe America Media and lists its address as the Virginia home of a veteran Republican operative, Michael McElwain. McElwain has long had his own advertising company (separate from the Delaware one), but there’s little evidence that firm could handle a nine-figure federal contract on its own: It reported just five employees when it received COVID-19 relief money a few years ago.

How, where and to whom Safe America Media doled out the $143 million is unknown. Any subcontractors hired to do work on the DHS ads are not disclosed in federal contracting databases. 

The office funding the ad contracts is listed as the DHS Office of Public Affairs, which is run by McLaughlin, contract records show. McLaughlin married Yoho, the Strategy Group CEO, earlier this year. 

In its statement, DHS said the agency does its contracting “by the book” and the process is run by career officials. “It is very sad that Pro Publica would seek to defame these public servants,” DHS added.

Asked about why the agency chose Safe America Media, DHS said, “The results speak for themselves: the most secure border in American history and over 2 million illegal aliens exiting the United States.” McElwain and People Who Think didn’t respond to questions.

Yoho was still in college when he first served as campaign manager for a U.S. congressman. Now, at 38 years old, he’s a national player in the cutthroat industry of political advertising. Federal election records show tens of millions in payments to his firm during the 2024 election cycle, coming from dozens of Republican congressional candidates. And Noem has proved a particularly lucrative client.

Lewandowski brought Yoho into Noem’s inner circle back in South Dakota, according to two people familiar with the matter, putting the young consultant in charge of the ad side of her 2022 gubernatorial reelection campaign. Noem had a more than $5 million advertising budget for the race, records show. After she won in a landslide, Yoho, who has called Noem a friend, came to South Dakota to attend her inauguration ceremony. He sat off to the side of the stage, next to Lewandowski. (Lewandowski didn’t respond to a request for comment.)

By then, Yoho’s next big project with Noem was already in the works. In late 2022, Noem was quietly preparing to launch another sprawling ad campaign — only this time, the money would come from state coffers. The stated goal was to encourage workers to move to South Dakota. The upcoming contract opportunity wasn’t public yet, but Yoho was already involved in planning the campaign, according to records first reported by Sioux Falls Live.

Then on Jan. 12, 2023, Yoho’s company registered to do business in South Dakota under the name Go West Media. The next day, the contract opportunity went live.

Seven companies submitted proposals for the project. Then the pressure from above set in, according to a former Noem administration official involved in the process.

The former official said a top Noem aide told them the governor would be angry if Yoho’s company didn’t win the contract. “He was very direct: ‘She wants to do it,’” they said. Contemporaneous text messages reviewed by ProPublica corroborate that senior Noem administration officials pushed for Yoho to get the contract. Eventually, he did. (In its statement, DHS denied that Noem influenced the process.)

Noem starred in Yoho’s ads herself, dressing up as a dentist, a plumber and a state trooper as she touted her state’s growing economy. Exactly how much Yoho and the Strategy Group made off the $8.5 million deal is unclear. Some of the money was used to purchase spots on Fox News, including one during a Republican presidential debate. Some of the money appears to have gone back to South Dakota — into the bank account of another of Noem’s top advisers.

Sheahan, now the second-in-command at ICE, was paid up to $25,000 by Go West in 2023 for “consulting,” according to a financial disclosure document Sheahan later filed. At the time, Sheahan was serving as both the operations director for Noem as governor and the political director for Noem’s campaign work, according to a copy of her 2023 resume obtained by ProPublica. Her responsibilities included coordinating “daily logistics and operations” for Noem and her team, the resume said. She also managed the “relationship with high level donors” to American Resolve, Noem’s network of outside political groups. 

As his firm received millions from the South Dakota state government, Yoho separately continued to work for Noem in other capacities. He worked under Lewandowski on the publicity campaign for Noem’s 2024 memoir, according to a person familiar with the matter. (The book became famous for including an anecdote about Noem shooting her dog.)

The Strategy Group also received a stream of payments for social media consulting and media production work over the last few years from Noem’s American Resolve PAC. Federal election records show the PAC made its last payment to Yoho’s company this February, a couple weeks after Noem took her post as the head of DHS.

This story was originally published by ProPublica. Republished under a CC BY-NC-ND 3.0 license.

Elon Musk’s SpaceX has taken money directly from Chinese investors, according to previously sealed testimony, raising new questions about foreign ownership interests in one of the United States’ most important military contractors.

The recent testimony, coming from a SpaceX insider during a court case, marks the first time direct Chinese investment in the privately held company has been disclosed. While there is no prohibition on Chinese ownership in U.S. military contractors, such investment is heavily regulated and the issue is treated by the U.S. government as a significant national security concern.

“They obviously have Chinese investors to be honest,” Iqbaljit Kahlon, a major SpaceX investor, said in a deposition last year, adding that some are “directly on the cap table.” “Cap table” refers to the company’s capitalization table, which lists its shareholders.

Kahlon’s testimony does not reveal the scope of Chinese investment in SpaceX or the identities of the investors. Kahlon has long been close with the company’s leadership and runs his own firm that acts as a middleman for wealthy investors looking to buy shares of SpaceX.

SpaceX keeps its full ownership structure secret. It was previously reported that some Chinese investors had bought indirect stakes in SpaceX, investing in middleman funds that in turn owned shares in the rocket company. The new testimony describes direct investments that suggest a closer relationship with SpaceX.

SpaceX has thrived as it snaps up sensitive U.S. government contracts, from building spy satellites for the Pentagon to launching spacecraft for NASA. U.S. embassies and the White House have connected to the company’s Starlink internet service too. Musk’s roughly 42% stake in the company is worth an estimated $168 billion. If he owned nothing else, he’d be one of the 10 richest people in the world.

National security law experts said federal officials would likely be deeply interested in understanding the direct Chinese investment in SpaceX. Whether there was cause for concern would depend on the details, they said, but the U.S. government has asserted that China has a systematic strategy of using investments in sensitive industries to conduct espionage.

If the investors got access to nonpublic information about the company — say, details on its contracts or supply chain — it could be useful to Chinese intelligence, said Sarah Bauerle Danzman, an Indiana University professor who has worked for the State Department scrutinizing foreign investments. That “would create huge risks that, if realized, would have huge consequences for national security,” she said.

SpaceX did not respond to questions for this story. Kahlon declined to comment.

The new court records come from litigation in Delaware between Kahlon and another investor. The testimony was sealed until ProPublica, with the assistance of lawyers at the Reporters Committee for Freedom of the Press and the law firm Shaw Keller, moved in the spring to make it public. SpaceX fought the effort, but a judge ruled that some of the records must be released. Kahlon’s testimony was publicly filed this week.

Buying shares in SpaceX is much more difficult than buying a piece of a publicly traded company like Tesla or Microsoft. SpaceX has control over who can buy stakes in it, and the company’s investors fall into different categories. The most rarefied group is the direct investors, who actually own SpaceX shares. This group includes funds led by Kahlon, Peter Thiel and a handful of other venture capitalists with personal ties to Musk. Then there are the indirect investors, who effectively buy stakes in SpaceX through a middleman like Kahlon. (The indirect investors are actually buying into a fund run by the middleman, typically paying a hefty fee.) All previously known Chinese investors in SpaceX fell into the latter category.

This year, ProPublica reported on an unusual feature of SpaceX’s approach to investment from China. According to testimony from the Delaware case, the company allows Chinese investors to buy stakes in SpaceX so long as the money is routed through the Cayman Islands or other offshore secrecy hubs. Companies only have to proactively report Chinese investments to the government in limited circumstances, and there aren’t hard and fast rules for how much is too much.

After ProPublica’s report, House Democrats sent a letter to Defense Secretary Pete Hegseth raising alarms about the company’s “potential obfuscation.” “In light of the extreme sensitivity of SpaceX’s work for DoD and NASA, this lack of transparency raises serious questions,” they wrote. It’s unclear if any action was taken in response.

Kahlon has turned his access to SpaceX stock into a lucrative business. His investor list reads like an atlas of the world. The investors’ names are redacted in the recently unsealed document, but their addresses span from Chile to Malaysia. One is in Russia. At least two are in mainland China. One is in Qatar. (In one email to SpaceX’s chief financial officer, Kahlon said a Los Angeles-based fund had money from the Qatari royal family and was already invested in SpaceX.)

“You made a big fortune,” a China-based financier wrote to Kahlon four years ago. “Lol something like that. SpaceX has been the gift that keeps on giving,” Kahlon responded. “All thanks to you.”

Kahlon first met with SpaceX when it was a fledgling startup, according to court records. SpaceX’s CFO, Bret Johnsen, who’s been there for 14 years, testified that Kahlon “has been with the company in one form or fashion longer than I have.” Johnsen also testified that SpaceX has no formal policy about accepting investments from countries deemed adversaries by the U.S. government. But he said he asks fund managers to “stay away from Russian, Chinese, Iranian, North Korean ownership interest” because that could make it “more challenging to win government contracts.”

There are indications that by 2021, Kahlon was wary of raising funds from China. The U.S. government had grown increasingly concerned about Chinese investments in tech companies, and that June, Kahlon told an associate he was “being picky” with who he’d let buy into a new SpaceX opportunity. “Only people I want to have a relationship with long term. No one from mainland China,” Kahlon said.

But as he raced to assemble a pool of investors, those concerns appeared to fade away. By November 2021, Kahlon was personally raising money from China to buy SpaceX stakes. He told a Shanghai-based company that if it invested with him, it would get quarterly updates on SpaceX’s business development, “visits to SpaceX, and the opportunities to interview with Space X’s CFO,” court records show.

The Shanghai company ultimately sent Kahlon $50 million to invest in Musk’s business, according to court records. SpaceX had the deal canceled after the plan became public.