Blab Business
1789 Capital Denies House Judiciary Committee Allegations of Insider Deals
Donald Trump Jr.’s venture‑capital firm, 1789 Capital Management, has formally rejected accusations from Rep. Jamie Raskin, the ranking minority member of the House Judiciary Committee, that the firm bought stakes in companies before those firms received federal funding or favorable policy decisions.
In a letter that CBS News obtained, the firm’s legal counsel described Raskin’s characterization of the company as “spaghetti‑against‑the‑wall” and said the firm would not provide the materials the congressman requested. The letter, sent on August 27, 2026, was shared with CBS News.
Raskin’s investigation began last month after he sent a demand letter to 1789 Capital. According to the letter, the firm was asked to turn over a list of its portfolio companies, communications with federal officials, records of government actions that affected its investments, documents related to its relationship with Donald Trump Jr., and due‑diligence materials. The firm has not complied with those requests.
The allegations stem from claims that 1789 Capital, which is based in Palm Beach, Florida, and focuses on conservative‑aligned businesses, has benefited from federal contracts and regulatory relief. Wikipedia notes that within a year after Donald Trump assumed office, companies backed by 1789 Capital received contracts worth $735 million from the Trump administration, and other portfolio companies received regulatory relief.
Donald Trump Jr. became a partner at 1789 Capital in 2024. The firm has been criticized for potential conflicts of interest related to the Trump family’s political ties. 1789 Capital positions itself as an anti‑ESG investment firm.
In addition to the allegations of insider deals, 1789 Capital has been in the spotlight for its recent investments. A report from Prediction News dated August 31, 2026, states that the firm is investing roughly $300 million more in Polymarket as part of a $1 billion funding round that values the prediction‑market platform at $21 billion.
Raskin’s letter and the firm’s response come at a time when the House Judiciary Committee is preparing for a potential shift in control after the November elections. According to CBS News, the investigation could foreshadow political showdowns in the chamber if the Democrats gain a majority.
The firm’s legal counsel’s letter criticized Raskin’s approach, calling it “spaghetti‑against‑the‑wall.” The counsel also noted that the firm has not provided the materials requested, a stance that aligns with the firm’s broader reluctance to disclose internal documents.
The investigation is part of a broader scrutiny of how private investment firms may interact with federal agencies. The House Judiciary Committee has a long history of overseeing the administration of justice and has previously investigated high‑profile political figures.
As of the latest reporting, no formal charges or subpoenas have been issued against 1789 Capital. The firm’s refusal to provide requested documents has left the investigation at a preliminary stage.
The outcome of Raskin’s probe will likely influence how the committee approaches other cases involving potential conflicts between private investors and federal decision‑makers. The firm’s continued investments, such as the Polymarket round, will also be monitored for any indications of preferential treatment.
The situation remains unresolved. 1789 Capital has not yet responded to the committee’s demands beyond the letter shared with CBS News. The House Judiciary Committee has not announced a timetable for further action. The next steps will depend on whether the committee issues subpoenas or seeks additional evidence.
The case underscores the ongoing debate over the intersection of politics and private capital. Whether the investigation leads to formal proceedings or remains a matter of public scrutiny will be determined in the coming weeks as the committee moves forward with its agenda.
In a letter that CBS News obtained, the firm’s legal counsel described Raskin’s characterization of the company as “spaghetti‑against‑the‑wall” and said the firm would not provide the materials the congressman requested. The letter, sent on August 27, 2026, was shared with CBS News.
Raskin’s investigation began last month after he sent a demand letter to 1789 Capital. According to the letter, the firm was asked to turn over a list of its portfolio companies, communications with federal officials, records of government actions that affected its investments, documents related to its relationship with Donald Trump Jr., and due‑diligence materials. The firm has not complied with those requests.
The allegations stem from claims that 1789 Capital, which is based in Palm Beach, Florida, and focuses on conservative‑aligned businesses, has benefited from federal contracts and regulatory relief. Wikipedia notes that within a year after Donald Trump assumed office, companies backed by 1789 Capital received contracts worth $735 million from the Trump administration, and other portfolio companies received regulatory relief.
Donald Trump Jr. became a partner at 1789 Capital in 2024. The firm has been criticized for potential conflicts of interest related to the Trump family’s political ties. 1789 Capital positions itself as an anti‑ESG investment firm.
In addition to the allegations of insider deals, 1789 Capital has been in the spotlight for its recent investments. A report from Prediction News dated August 31, 2026, states that the firm is investing roughly $300 million more in Polymarket as part of a $1 billion funding round that values the prediction‑market platform at $21 billion.
Raskin’s letter and the firm’s response come at a time when the House Judiciary Committee is preparing for a potential shift in control after the November elections. According to CBS News, the investigation could foreshadow political showdowns in the chamber if the Democrats gain a majority.
The firm’s legal counsel’s letter criticized Raskin’s approach, calling it “spaghetti‑against‑the‑wall.” The counsel also noted that the firm has not provided the materials requested, a stance that aligns with the firm’s broader reluctance to disclose internal documents.
The investigation is part of a broader scrutiny of how private investment firms may interact with federal agencies. The House Judiciary Committee has a long history of overseeing the administration of justice and has previously investigated high‑profile political figures.
As of the latest reporting, no formal charges or subpoenas have been issued against 1789 Capital. The firm’s refusal to provide requested documents has left the investigation at a preliminary stage.
The outcome of Raskin’s probe will likely influence how the committee approaches other cases involving potential conflicts between private investors and federal decision‑makers. The firm’s continued investments, such as the Polymarket round, will also be monitored for any indications of preferential treatment.
The situation remains unresolved. 1789 Capital has not yet responded to the committee’s demands beyond the letter shared with CBS News. The House Judiciary Committee has not announced a timetable for further action. The next steps will depend on whether the committee issues subpoenas or seeks additional evidence.
The case underscores the ongoing debate over the intersection of politics and private capital. Whether the investigation leads to formal proceedings or remains a matter of public scrutiny will be determined in the coming weeks as the committee moves forward with its agenda.
