Fox News recently highlighted a controversial investment made by the Trump Organization, led by Donald Trump Jr. and Eric Trump. The organization invested in a construction company poised to benefit from a rare earth minerals deal funded by the U.S. government.
Securities attorney Andrew Stoltmann commented on the situation, stating that finding evidence of wrongdoing in such cases is challenging. He noted that President Trump may not have known about his sons’ investments unless they informed him directly.
Stoltmann explained that Donald Trump Jr. and Eric Trump are private investors, not government employees. Therefore, they have no obligation to disclose passive investments.
“The question is whether President Trump would have known about his sons’ investments in this company, and I think the answer would be ‘no’ unless the sons told them,” Stoltmann said.
The controversy involves a tungsten mining deal in Kazakhstan, conducted mainly by Cove Capital, a U.S.-based investment company. Cove Capital secured a 70% share in Kazakhstan’s state-owned tungsten mining deposits, which are crucial for military equipment construction like missiles and fighter jets. Most of the world’s tungsten supply is controlled by China and Russia. Under Trump’s administration, securing tungsten supply became a national security priority.
In August 2025, through Dominari Securities housed at Trump Tower, the Trump brothers acquired a minority stake in Skyline Builders, a publicly traded company. This occurred before Kazakhstan awarded a tungsten mining contract to the U.S. The EXIM and DFC penned up to $1.6 billion letters for this deal, selecting Cove Kaz Capital for majority mining operations.
The deal awaits an SEC standard review. Recently, Skyline Builders merged with Cove Kaz Capital, forming Kaz Resources, now listed on NASDAQ. Skyline Builders owns 20% of Kaz Resources after a $20 million investment.
“The $64,000 question is pretty much what Trump knew and when he knew it — and look, the optics are bad,” Stoltmann remarked.
Accusations suggest the Trump brothers invested in Skyline Builders foreseeing Kazakhstan awarding the tungsten deal to the U.S. Despite these claims, the Trump Organization states the investment was passive and made pre-deal, lacking knowledge of Kazakhstan’s contract award.
Stoltmann acknowledges the optics are problematic, stating: “You have the president’s sons investing in a company that is eventually awarded a very large contract, and so it certainly raises eyebrows, it raises suspicions.”
Stoltmann further highlighted that legal scrutiny from Democrats could increase if they regain legislative control. He predicts a surge in subpoenas for communication records involving the Trump family and associates.
“You’re going see a tsunami of subpoenas trying to get the phone records, the communication records, the emails of the Trump boys and President Trump and everybody associated with this deal,” he forecasted.
The White House reiterated that President Trump’s investments are managed by independent third-party institutions. “President Trump only acts in the best interests of the American public – which is why they overwhelmingly re-elected him to this office,” stated spokesperson Anna Kelly.
Cantor Fitzgerald emphasized no involvement in negotiations, only supporting capital raises in public markets.