Dueling accusations between founders of a digital strategy firm supporting President Trump escalated sharply when one founder accused the other of undisclosed foreign payments. Derek Utley filed a lawsuit Monday alleging Alex Bruesewitz received approximately $500,000 from individuals associated with Qatar for consulting arrangements, potentially violating Foreign Agent Registration Act requirements. Bradford Cohen, Bruesewitz's lawyer, called the claims "flaccid and defamatory," stating Utley can expect a vigorous court fight.
The lawsuit stems from a long-running dispute between the co-founders of X Strategies, founded in 2017. Utley left the firm earlier this year. Bruesewitz continues running the firm, which has earned over $3.2 million in consulting fees since 2018 from Republican groups and candidates.
The firm serves as a senior adviser to Never Surrender, the president's leadership PAC, paying $25,000 monthly retainer. Bruesewitz also manages social media accounts @Trump War Room and @Team Trump with over 30 million followers. In September, Bruesewitz sued Utley for misappropriating millions; Utley responded with a 40-page countersuit claiming he was cheated out of owed money.
The legal battle offers a rare glimpse into Republican influence operations on social media. Last week, Bruesewitz admitted paying right-wing influencer Laura Loomer to place content on X, which Loomer denied, stating the money was for political research. Mr. Utley said Mr. Bruesewitz cultivated relationships with foreign governmental representatives and wealthy foreign businessmen while offering political consulting and access to American political figures. Reports show Mr. Bruesewitz traveled to Qatar twice in the past 12 months, speaking at the Doha Forum in December and visiting again in late February.
Source: New York Times Business · Summarized by HeadlinesBriefing