Two Different Government Agencies Are Investigating Elon Musk
Elon Musk is facing an unprecedented convergence of federal scrutiny: a Securities and Exchange Commission lawsuit over delayed Twitter‑stake disclosures, a Government Accountability Office review of SEC reforms tied to his influence, and newly introduced legislation to block his companies from federal contracts due to conflict‑of‑interest concerns. Additionally, watchdog probes are examining Musk’s Department of Government Efficiency (DOGE) for its access to sensitive federal data and payment systems. Together, these actions represent the first major regulatory, legislative, and oversight challenges brought against one of America’s most high‑profile billionaires.
SEC Lawsuit Over Twitter Disclosure
In January 2025, the SEC filed a civil complaint against Musk, alleging he waited 11 days too long to disclose in March 2022 that he had acquired a 5% stake in Twitter—allowing him to quietly amass additional shares at depressed prices before the public announcement on April 4, 2022, and netting at least $150 million in gains once the stock jumped 27 percent¹.
A Manhattan federal judge later rejected Musk’s bid to dismiss a separate shareholder suit claiming he defrauded former Twitter investors by disguising his initial filings and mischaracterizing tweets about the company’s prospects².
Musk was formally served with the SEC’s complaint at SpaceX’s Brownsville headquarters on March 14, 2025³.
Inside the SEC, interim Chair Mark Uyeda was the lone dissenting vote when the agency decided to pursue the case, underscoring tensions over enforcement priorities⁴.
GAO Reviews SEC Reforms and DOGE Operations
On April 14, 2025, the GAO announced it would probe recent SEC organizational changes—staff cuts, office consolidations, and narrowed enforcement powers—implemented under directives linked to Musk’s DOGE initiative and White House policy⁵.
Separately, GAO auditors have been examining since March how DOGE staff have used and protected sensitive data across cabinet‑level agencies, including Labor, Homeland Security, and Treasury⁶.
A WIRED report confirms that the GAO’s audit covers DOGE’s integration with multiple federal systems and raises questions about compliance with privacy and data‑security laws⁷.
Legislative Action: Conflict‑of‑Interest Bill
On April 9, 2025, Senator Jeanne Shaheen introduced legislation to bar any company from receiving federal contracts or grants if a beneficial owner is a “special government employee” (SGE) holding 5 percent or more ownership⁸.
This measure directly targets Musk, who in February was designated an SGE—allowing him to serve up to 130 days advising the president without many standard ethics disclosures⁹.
Additional Oversight: Treasury Payments and Social Security Data
In February, the Treasury Department’s acting inspector general and the GAO launched investigations into DOGE’s access to the federal payments system, responding to concerns over unprecedented rights to read and modify Treasury records¹⁰.
In mid‑April, a federal judge extended a preliminary injunction barring DOGE personnel from accessing Social Security Administration data, citing risks to the integrity of Americans’ personal records¹¹.
Implications and Outlook
For the first time, Elon Musk’s dual roles—as head of private corporations with extensive federal contracts and as a government adviser—have triggered a suite of checks and balances: enforcement by the SEC, auditing by the GAO, judicial injunctions, and new legislation in Congress. How these processes conclude—whether with settlements, fines, policy rollbacks, or legal precedents—will test the limits of regulatory authority over high‑profile private citizens intertwined with government operations.
