On Tuesday, the legal team for 1789 Capital, the venture capital firm founded by Donald Trump Jr., formally rejected accusations from Representative Jamie Raskin regarding alleged “insider political influence.” The rebuttal appears to anticipate contentious oversight battles in the U.S. House of Representatives should Democrats regain control during the November midterm elections.
In a correspondence reviewed by CBS News, Alexander J. Merton, counsel for the firm, dismissed Raskin’s methods as a “spaghetti-against-the-wall approach” and declined to provide the documents the congressman had requested. Merton stated that while the firm is open to proper congressional oversight, it would not be subject to political maneuvering where public claims are followed by demands for confidential records to find factual support.
Raskin, the ranking Democrat on the House Judiciary Committee, initiated an investigation last month into 1789 Capital. He alleged that the firm acquired stakes in various companies shortly before those entities received favorable government policies or federal funding. The inquiry specifically highlighted investments in Polymarket, Juul, Anduril Industries, and Vulcan, a rare-earth minerals company. Reports have noted the firm’s apparent success in identifying beneficiaries of the Trump administration since Trump Jr. became a partner following his father’s second election victory.
Although Raskin sought portfolio lists, due diligence materials, and communications with the administration—including encrypted messages—the firm provided none of these. Merton pointed out that Vulcan had already secured federal contracts dating back to 2024, prior to the financing round involving 1789 Capital, describing the firm as merely one of many institutional investors.
The response letter accused Raskin of making “unsubstantiated and emotional aspersions,” claiming he repeatedly confused distinct entities and mischaracterized transactions in ways that contradicted his own cited sources.
The letter was delivered one day before the Republican National Committee’s inaugural midterm convention in Texas. Donald Trump Jr. is scheduled to attend the Dallas event on Thursday, while President Trump is set to deliver a keynote address on Wednesday.
This exchange is part of a broader pattern of Democratic inquiries into the Trump administration, its family members, and associated businesses. However, because Democrats currently lack subpoena power, these demands serve as potential indicators of the aggressive oversight investigations they plan to pursue if they win the House majority in the midterms.
Calling it a spaghetti approach is a bold move. At least they’re not hiding, just drawing a hard line on privacy.
If Democrats take the House next year, expect a flood of these requests. The midterms are basically a preview now.
I find it fascinating that Vulcan had contracts before 1789 Capital even invested. That timeline undermines the whole allegation.
This looks like political theater. Raskin has no subpoena power yet, so what exactly is he proving?
Insider trading or just sharp business instincts? Hard to tell when the lines blur like this.