FCC Officials Took Gifts From Paramount While It Had Business Before Them — ProPublica

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Reporting Highlights

Expensive Gifts: Despite regulating broadcast media, FCC commissioners have accepted pricey tickets to the Kennedy Center honors gala from CBS or its parent company, now Paramount.

Conflict of Interest: Ethics experts say that by accepting the gifts, FCC commissioners are compromising the agency’s impartiality and should avoid acting on Paramount’s pending merger.

Mixing Business and Pleasure: After voting for a Paramount merger, Commissioner Olivia Trusty took tickets worth over $12,000. FCC Chair Brendan Carr has accepted tickets worth at least $63,000.

These highlights were written by the reporters and editors who worked on this story.

The rich and famous who filed into the Kennedy Center’s opera house in December were there to enjoy one of the nation’s most exclusive celebrations of the performing arts: the center’s annual honors gala.

The black-tie event, hosted by President Donald Trump, prioritized tickets to people who donated more than $75,000 to the center. This year, it feted Hollywood icon Sylvester Stallone, the legendary glam rock band Kiss and the Grammy Award-winning disco pioneer Gloria Gaynor.

Among the attendees that evening were two lower-profile government officials whose regulatory decisions had been crucial to the future of the gala’s broadcast sponsor, CBS, and its parent company, Paramount.

Five months earlier, Federal Communications Commissioner Olivia Trusty cast a decisive vote approving Paramount’s historic $8 billion merger with Skydance Media. Now, the commissioner and a guest enjoyed the star-studded celebration thanks to tickets gifted to her by Paramount worth more than $12,000, according to ethics disclosure records obtained by ProPublica.

The other commissioner who approved the merger watched from a prized perch. FCC Chair Brendan Carr and his wife sat in a private skybox with Paramount CEO David Ellison and other executives from Paramount and CBS. Such seats sold for $125,000 a ticket, according to Kennedy Center guidelines.

It’s unclear if Paramount gifted Carr the premium seats because the FCC has yet to make public his financial disclosure for last year.

However, past disclosures show Carr and Trusty are among seven FCC commissioners who have accepted Kennedy gala tickets from CBS or its parent company over the last decade. Ethics experts told ProPublica this poses a blatant conflict of interest since the commission regulates the network. Carr’s previous financial statements show he has accepted tickets at least seven times since his 2017 appointment, totaling over $63,000 in gifts.

Last December’s ceremony attended by Trusty and Carr took place as Paramount was launching a hostile takeover bid for Warner Bros. Discovery, a move that would later result in a merger agreement that requires FCC approval.

Federal ethics rules ban employees from taking gifts from any entity that does business with, is regulated by or seeks official action from their agency.

Four ethics experts told ProPublica that by accepting the premium tickets Trusty and Carr compromised the FCC’s impartiality and should not take part in any upcoming decision on the merger.

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We’re still reporting on potential conflicts of interest in the Trump administration. If you know more about this topic, please contact our reporting team.

Corey G. Johnson

I welcome tips about ethical conflicts or misdeeds inside the federal bureaucracy. I’m interested in policies, contracts and regulatory issues that affect people’s lives. If you have any insights, please reach out via email or Signal.

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“There’s no way that any top federal regulator should ever, ever accept a gift from a regulated company with interests their work will foreseeably affect,” said Walter Shaub, who led the federal Office of Government Ethics from 2013 to 2017. “The appearance of taking gifts like that is terrible. What’s...