Elon Musk’s Man in the Treasury Is Still Holding Down His Day Job as Software CEO

This morning, workers at the US Treasury Department’s Bureau of the Fiscal Service (BFS) received an email announcing that Tom Krause, a software executive and Elon Musk ally, was “appointed to perform the delegated duties of the Fiscal Assistant Secretary.” That role was previously occupied by David Lebryk, who resigned after refusing to allow Musk’s so-called Department of Government Efficiency (DOGE) access to sensitive systems within the Treasury Department. Though it had been previously reported that Krause, who had been called a special government employee, had obtained Lebryk’s old position, the email also notably states that Krause is “currently the CEO of Cloud Software Group.”

“Tom brings more than 20 years of experience leading, building, and positioning software and technology companies for value and long-term success,” the email reads. “Tom is currently the CEO of Cloud Software Group which manages and operates multiple mission critical enterprise software businesses.”

In response to questions from WIRED, a representative for the company said that “Tom is the CEO of Cloud Software Group” and forwarded a copy of an email sent to the company’s employees last week in which Krause wrote, “in addition to my duties as CEO of Cloud Software Group, I am advising the US Department of Treasury as a ‘special government employee.’ I am honored to serve our country.” Critics believe Krause retaining his job in addition to serving in the government could be a massive conflict of interest.

Treasury did not immediately respond to a request for comment. Cloud Software Group did not respond to questions about whether Krause would continue to draw a salary from the company during his time with the Treasury.

In an affidavit filed Thursday in the lawsuit Alliance for Retired Americans v. Department of the Treasury, Krause wrote, “While in this Treasury role, I have also maintained my employment as Chief Executive Officer (CEO) of Cloud Software Group, Inc., which [is] a privately held company comprised of several enterprise software businesses. This arrangement has been approved by Treasury’s ethics office, who determined, based on my role as an SGE, that this arrangement was permissible.” In the same affidavit, Krause said, “I have not yet assumed those duties” as Fiscal Assistant Secretary.

“I cannot think of another example where this has occurred, but I do think it’s part of a broader pattern of the erasure of conflicts of interests within the federal government,” says Don Moynihan, a professor of public policy at the University of Michigan. “Federal employees can’t take more than a $25 gift from someone who might be trying to influence their actions. On the other hand, their bosses are simultaneously running private companies while also running parts of the government that affect their businesses.”

Treasury in particular, he says, could pose a conflict of interest across industries because “it affects everything.” And any alleged conflicts of interest may not be limited to just Krause’s own company. “There is a network of people coming from Silicon Valley and corporate America now that are working together,” Moynihan says. “And so it’s not just about the conflict of interest he might have with his business, but the way in which he’s situated to help that broader network that are now effectively running the government.”