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The Food and Drug Administration (FDA) under President Biden is facing intense scrutiny for what critics have described as ineffective regulation of tobacco and nicotine, allegedly caving to political pressure to ban vapes and e-cigarettes as potential alternatives to traditional smoking while simultaneously allowing Chinese products to flood the U.S. market.

The FDA’s Center for Tobacco Products (CTP) is charged with regulating the manufacture, distribution and marketing of tobacco products. However, the CTP has been under fire for its approach to vapes, e-cigarettes and other electronic nicotine delivery systems (ENDS).

While the FDA is cracking down on ENDS, it’s also allowing illicit and unregulated products to flood the market — including from China.

The FDA has sent hundreds of warning letters to companies marketing illegal e-cigarettes containing tobacco-derived nicotine, but it’s unclear whether additional enforcement actions were taken. Reports have highlighted how vape companies regularly flout the FDA’s orders and make, stock and sell illicit goods that can be seen at countless smoke shops and online retailers that aren’t approved by the FDA.

Many of these products were made in China. Indeed, at least 20 brands continue to sell China-made disposable devices with kid-friendly flavors such as ‘peach blueberry candy’ and ‘pineapple strawnana’ at liquor stores, smoke shops and convenience stores across the U.S., according to Reuters.

Former FDA chief Scott Gottlieb is one prominent voice who’s spotlighted the problem.

‘Synthetic nicotine is being used in products like Puff Bar, that are manufactured in China and other nations, and imported into the U.S. and specifically targeted to youth,’ he tweeted. ‘This is exactly opposite what Congress intended through its public health efforts. There are also U.S. tobacco companies that are largely following the rules, that are making investment in potentially less harmful alternatives to combustible tobacco, that pay taxes and fees on products – all while the foreign-made synthetic products evade the same requirements.’

In Congress, meanwhile, Sheila Cherfilus-McCormick, D-Fla, in February introduced legislation to close loopholes concerning ENDS containing flavors that could be enticing to children.

‘Chinese manufacturers and suppliers are flooding the U.S. market with unregulated, harmful substances that are altering our children’s brain development and live,’ she said in a statement.

A month later, Senate Majority Leader Chuck Schumer, D-N.Y., called on the FDA to investigate Elf Bar, a new Chinese e-cigarette that is being advertised on social media.

‘Elf Bar is littering TikTok and Instagram, using influencers they pay directly, to push the e-cig to kids and teens,’ he said in a statement. ‘This kind of ploy might totally evade FDA advertising rules, and we have to get ahead of it.’

However, critics warn that targeting one company at a time won’t solve the problem, because replacements will just pop up, posing a particular challenge for children. According to the Department of Health and Human Service’s inspector general, the FDA’s approach to overseeing online tobacco retailers ‘raises questions about the effectiveness of FDA’s efforts to prevent youth access to tobacco products online. In the first 10 years of its oversight, FDA’s actions toward online tobacco retailers were limited to warning letters and its oversight has had poor transparency.’

Rep. James Comer, R-Ky., chairman of the House Oversight Committee, wrote a letter in March to FDA Commissioner Robert Califf demanding documents to conduct oversight of the agency’s regulation of tobacco and nicotine products through CTP. He didn’t hold back in expressing his concerns, arguing that the agency’s regulatory system has led to ‘enforcement failures’ and ‘suspicions of political interference.’

‘CTP has fostered uncertainty in the marketplace and has allowed unsafe and unregulated products to proliferate,’ wrote Comer. ‘Therefore, we seek documents and information regarding CTP’s activities to enable transparency and to ensure the CTP is performing required functions. . . . If products are allowed to go to market or stay on the market without authorized applications, then the entire regulatory effort would appear to be pointless.’

Comer’s letter came after the Reagan-Udall Foundation published a recent report at the request of Califf evaluating the CTP’s tobacco regulatory programs. The report — the product of a panel of independent experts who concluded that ‘fundamental policy and scientific issues remain unanswered that the center must address’ — was unable to identify a comprehensive plan that clearly articulates CTP’s goals and priorities.

‘CTP is perceived as being reactive and overwhelmed, versus proactive and strategic,’ the report said, adding that the center lacks clarity and transparency in how it makes decisions — especially when it comes to weighing scientific information versus policy judgments.

‘Failure to take timely enforcement action jeopardizes public health and undermines FDA’s credibility and effectiveness in tobacco product regulation,’ the report added. ‘The agency has not been transparent regarding the reasons it has failed to clear the market of illegal products, or even whether its policy preference is to do so, contributing to stakeholder frustration and, in some situations, additional litigation.’

According to Comer, the evaluation shows that the agency ‘appears to be unable to perform its basic functions and ensure that Americans have access to products that have the potential to lower the rate of smoking-related disease and death.’

When reached for comment for this story, the FDA pointed Fox News Digital to recent agency statements concerning tobacco regulation. In the agency’s official response to the Reagan-Udall report, Brian King, director of CTP, indicated that it would place a newfound emphasis on strategic planning.

‘Effective immediately, CTP will initiate the development of a comprehensive 5-year strategic plan, building upon the foundation of the center’s previous strategic plans,’ King said in the response. ‘Given the profound impact of tobacco-related disparities across CTP’s programmatic portfolio, the plan will include advancing health equity as a central tenet and focus on being proactive in its activities.’

The agency also listed other ways it plans on responding to the report’s varied recommendations.

However, it is unclear how the FDA will address one of the major concerns of close observers: the politicization of agency decision-making.

‘We have deep concerns that CTP’s decisions have been influenced by political concerns
rather than scientific evidence,’ Comer wrote in his letter.

Such concerns are apparent in comments from FDA staff to the Reagan-Udall Foundation that are no longer available on its website but present an agency that is struggling to fulfill its mandate. According to the Tobacco Reporter, one commenter said that ‘scientific disagreement is frowned upon, if not entirely suppressed, and punished through various backhanded methods.’ They added that leadership is ‘unsupportive of a reviewer’s fundamental duty to provide an unbiased review using the best available science.’ Another commenter said that ‘in cases where reviews are finished and scientific decisions are made, they are also overruled by political agendas and pushed to change decisions.’

Meanwhile, the FDA is facing political pressure from Capitol Hill to prevent ENDS from going to market. For example, several Democrats in Congress have pushed the agency to deny the applications of Juul Labs Inc., an e-cigarette company, and remove its products from the market. 

At a congressional hearing in June 2021, at which the FDA commissioner was testifying, Rep. Cori Bush, D-Mo., said that ‘e-cigarettes have hooked a generation of young people on nicotine. The FDA has an obligation to intervene and protect our children.’ Fellow Democratic Rep. Debbie Wasserman-Schultz added, ‘To be clear, you should reject all of Juul’s products, all of them, given what we know about how Juul marketed and addicted kids to their product.’

Several other Democrats, including in the Senate, similarly demanded a ban on Juul.

The demands continued into 2022, with Democratic lawmakers writing letters to the FDA chief. Then, on June 22 of that year, Sen. Dick Durbin, D-Ill., issued a statement calling on Califf to more tightly regulate e-cigarettes or ‘step aside.’ The next day, the FDA banned Juul products from being sold in the U.S. by issuing marketing-denial orders.

The day after that, Rep. Raja Krishnamoorthi, D-Ill., said he was ‘heartened’ by the FDA’s decisions following a ‘long conversation’ he had with agency officials. He added he’s ‘glad that at least we have an ally in the FDA commissioner.’

The agency has since put its order denying Juul on hold, saying that ‘there are scientific issues unique to the Juul application that warrant additional review.’

Beyond Juul and e-cigarettes, Democrats have similarly pressured the FDA to crack down on menthol vape products, arguing that ENDS flavored as anything other than tobacco can appeal to kids. Throughout 2021 and 2022, Democratic lawmakers repeatedly sent letters to the FDA chief and said in hearings that the agency should continue denying all flavored ENDS — especially menthol ones, despite the agency previously stating that kids prefer and use flavors such as fruit and mint ‘much more’ than tobacco or menthol. In January 2020, before the Biden administration, the FDA said that tobacco and menthol-flavored ENDS were not among the agency’s enforcement priorities.

Nonetheless, following an ongoing campaign on Capitol Hill, the FDA in October 2022 issued its first marketing-denial orders for menthol ENDS based on a full scientific review.

Months later, the drug-focused publication Filter reported that internal FDA memos showed that the CTP’s Office of Science had actually recommended to authorize menthol-flavored vaping products as permissible to go to market. However, according to the report, the office later reversed course due to pressure from agency leadership after the office of CTP Director Brian King intervened.

‘These documents appear to reveal substantial disagreement within CTP, one that could be framed as the agency’s scientists battling against its bureaucratic upper ranks, who have the FDA commissioner, and ultimately Congress, to answer to,’ the Filter wrote of the documents it had reviewed. ‘It can all be viewed, in other words, as a fight between science and politics.’

In April, the watchdog group Protect the Public’s Trust filed a complaint accusing the FDA of ‘knowing dissemination of scientifically unfounded statements about the vaping industry that were contrary to the FDA’s own research’ and ‘overruling its own scientists’ recommendations to authorize menthol-vapes without proper scientific justification and in contradiction of the FDA’s own research.’

A product is deemed permissible to go to market and appropriate for public health based largely on the likelihood of it transitioning adults away from cigarettes without introducing a new generation to nicotine.

An estimated 47 million U.S. adults currently use tobacco products, and nearly 80% of them use combustible products such as cigarettes, ‘which are responsible for the overwhelming burden of tobacco-related disease and death,’ Califf and King note in a recent article they co-authored.

Since 2005, the percentage of adult smokers in the U.S. has decreased from 20.9% to 12.5%. However, there are still about 30 million adult smokers across the country, where cigarette smoking is responsible for more than 480,000 deaths per year, according to the Centers for Disease Control and Prevention.

According to one study cited by Califf and King in their article, ‘there was high certainty that quit rates were higher in people randomized to nicotine [e-cigarettes] than in those randomized to nicotine replacement therapy.’

Other research indicates that daily ENDS use ‘was significantly associated with an 8-fold greater odds of cigarette discontinuation compared with no e-cigarette use’ for U.S. adults who had no plans to ever quit smoking.

The FDA, which maintains that no tobacco product can be considered safe, has not authorized a single menthol-flavored ENDS product to date. As of January, the agency had completed review of, and made determinations on, more than 99% of tobacco products and authorized 23 tobacco-flavored e-cigarette products and devices. These are the only e-cigarette products that currently may be lawfully sold in the U.S.

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The White House is still requiring guests who are not fully vaccinated against COVID-19 to wear face masks and practice social distancing, despite the federal government already terminating the national emergency declaration for the pandemic.

President Joe Biden and First Lady Jill Biden are inviting dozens of NCAA men’s and women’s national championship teams from Divisions I, II, and III to ‘College Athlete Day’ to celebrate their victories at the White House on Monday.

Earlier this week, the White House Office of Legislative Affairs sent out an email invitation to members of Congress obtained by Fox News Digital requesting their attendance at the event. The email included additional logistical details as well as COVID protocols.

According to the White House, while lawmakers are not required to receive a COVID test in advance of this event, they will need to wear a mask and socially distance if they’re unvaccinated.

Masking Guidance: Fully vaccinated guests are not required to wear a mask on the White House grounds,’ the email states [bold font in original email]. ‘Guests who are not fully vaccinated must wear a mask at all times and maintain at least 6 feet distance from others while on the White House grounds.

The White House email comes as hospitals and other health care facilities increasingly discard their masking rules with COVID becoming a smaller presence for most Americans in daily life.

Meanwhile, experts have been calling into question the efficacy of face masks.  A recent study published by the prestigious Cochrane Library, which is funded by the National Institutes of Health, dug into the findings of 78 randomized controlled trials to determine whether ‘physical interventions’ — including face masks and hand-washing — lessened the spread of respiratory viruses.

The conclusion about masks undercuts the scientific basis for masking, according to the study’s lead author.

 ‘There is just no evidence that they make any difference. Full stop,’ Tom Jefferson, the study’s lead author, said in an interview. When asked specifically about fitted N95 masks in health care settings, Jefferson said: ‘It makes no difference – none of it.’

The White House email calling for the unvaccinated to socially distance also comes as more researchers are skeptical of the idea that the COVID vaccine mandates limited transmission of the virus.

A recent study from the Mercatus Center at George Mason University concluded that COVID vaccine mandates in nine major cities didn’t appear to make a difference in terms of curbing cases deaths from the pandemic.

The study came after last year, a director of the pharmaceutical giant Pfizer admitted at a hearing before the European Parliament that, at the time of its introduction, the COVID vaccine had never been tested for stopping transmission of the virus, according to a video of the exchange posted by parliamentarian Rob Roos. 

A Centers for Disease Control and Prevention advisory group said in February that it wasn’t recommending more than one annual coronavirus vaccine booster.

Biden previously attacked those unvaccinated against COVID for not doing the ‘right thing’ and ‘costing all of us.’ He accused them of causing ‘a lot of damage’ by ‘making people sick and causing… people to die’ and standing in the way of ‘getting back to normal.’

When announcing his vaccine mandates last year, Biden warned those hesitant to receive the vaccination: ‘We’ve been patient, but our patience is wearing thin.’

Despite the White House’s mask mandate for the unvaccinated, the federal government officially ended the COVID-19 Public Health Emergency (PHE) on May 11. The secretary of the Department of Health and Human Services can declare a public health emergency under the Public Health Service Act. The COVID-19 PHE had been in effect since January 2020.

Days before the PHE termination, the World Health Organization announced that COVID no longer qualifies as a global emergency, marking a symbolic end to the pandemic.

A few weeks earlier, President Biden signed a bill in April terminating the national emergency declaration that allowed the government to respond to COVID with certain authorities that it otherwise wouldn’t have. That decisions came several months after Biden publicly declared ‘the pandemic is over’ last September in an interview.

The White House didn’t respond to a request for comment for this story.

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The markets are seeing a continuation of last week’s broadening out into areas beyond mega-cap FAANMG names. Most of the biggest gainers have been beaten-down stocks regaining their footing amid a move back into Cyclical areas of the market. The rally in these stocks began after last Friday’s May employment data showed that job openings rose higher than expected while wage gains were modest. The report helped reduce fears of a recession.

Today, I’ll be sharing the key characteristics of a stock as it successfully reverses its downtrend so that you, too, can participate in the upside potential as stocks begin entering a new uptrend.

DAILY CHART OF DATADOG (DDOG)

Above is a chart of Datadog (DDOG), which reversed its downtrend in early May. Subscribers to my MEM Edge Report will be familiar with this stock because that’s when it was added to the Suggested Holdings List of my MEM Edge Report. Let’s review some of the key traits.

First and foremost, DDOG reported strong earnings and sales, with management guiding growth estimates higher for the remainder of this year. This is a critical characteristic, as strong earnings are the primary driver of a stock that goes on to outpace the broader markets.

In response to the strong earnings, DDOG gapped up in price on heavy volume, in a move that put the stock above its key moving averages. The rally also pushed the stock’s momentum indicators into positive territory, which is highlighted. You’ll want to make sure that your stock is part of a strong Industry Group that’s outperforming the broader markets. This is because studies show that Industry Group and Sector affiliation account for almost 50% of your stocks up or downward move.

Getting a majority of the traits highlighted above will be enough to provide conviction that further upside is ahead; however, you’ll want to make sure the stock is fundamentally sound with positive momentum indicators, at the very least. Lastly, while we’re currently seeing a broadening out of stocks that are advancing higher, investors will also need to be mindful of key economic data that has been known to move the markets.

Next Wednesday, the Federal Reserve will be announcing their rate hike policy, with Fed Chair Powell’s press conference taking place immediately after. Most investors are looking for a pause in their rate hike campaign, so any surprise increase would not be good for the markets. In addition, core inflation data will be released on Tuesday and Wednesday, which may cause volatility depending on results.

If you’d like to be alerted to any shift in the market’s current uptrend, as well as insights into the best areas to be investing, take a trial of my twice weekly report by using this link here. You’ll be able to trial my MEM Edge Report at a nominal fee and gain access to prior reports as well!

Warmly,

Mary Ellen McGonagle, MEM Investment Research

In this episode of StockCharts TV‘s The MEM Edge, Mary Ellen reviews the continued rotation into Cyclicals while sharing stocks that are in the beginning stages of new uptrends. She also shares how to use intraday charts to trade fast-moving AI-related stocks.

This video was originally broadcast on June 9, 2023. Click on the above image to watch on our dedicated MEM Edge page on StockCharts TV, or click this link to watch on YouTube. You can also watch on our on-demand website, StockChartsTV.com, using this link.

New episodes of The MEM Edge air Fridays at 5:30pm PT on StockCharts TV. You can view all previously recorded episodes at this link. You can also receive a 4-week free trial of her MEM Edge Report by clicking the image below.

On this week’s edition of StockCharts TV‘s StockCharts in Focus, we’re going beyond the charts with, well… more charts! Grayson takes viewers on an action-packed tour of seven different StockCharts tools – Seasonality Charts, PerfCharts, CandleGlance, GalleryView, RRG Charts, MarketCarpets, and the Dynamic Yield Curve. These complements to our primary price charting features have loads to offer, whether you’re looking for unique market insights, analyzing sector rotation, evaluating a group of stocks or researching a single security. Learn how each tool works and discover some of the creative ways that Grayson uses them in his own trading and investing approach.

This video was originally broadcast on June 9, 2023. Click on the above image to watch on our dedicated StockCharts in Focus page on StockCharts TV, or click this link to watch on YouTube. You can also watch on our on-demand website, StockChartsTV.com, using this link.

New episodes of StockCharts in Focus air Fridays at 3pm ET on StockCharts TV. You can view all previously recorded episodes at this link.

A growing chorus of voices is calling for Lululemon to reinstate two Atlanta-area employees who were fired for confronting thieves at their store.

Jennifer Ferguson and Rachel Rogers last week told the Atlanta-area NBC affiliate, WXIA-TV, that they were terminated after they tried to intervene to stop a theft conducted by men in ‘masks and hoodies’ who ‘swiped’ what they could before leaving the athletic apparel store.

The backlash has been led in part by conservative pundit Ben Shapiro, who accused the Canadian multinational retailer of being “deeply afraid that the woke are going to come after them if they actually start prosecuting shoplifters” and that “they’re afraid they’re going to be accused of racial profiling.”

Lululemon CEO Calvin McDonald has doubled down on the company’s termination decision, telling CNBC last Friday that the employees ‘knowingly broke the policy, engaged with the thieves … that was what resulted in the termination.”

Lululemon did not respond to a request for comment about whether it plans to reinstate the fired employees.

The company’s policy to restrict employees from engaging with perpetrators during a crime is somewhat common in the retail industry, said Neil Saunders, managing director at GlobalData consultancy. What is different is Lululemon’s willingness to stick to it in the face of both apparent common sense and the company’s stated values, Saunders said.

‘Lululemon plasters their entire store with slogans about kindness … but this is not a very nice policy,’ Saunders said. ‘Now there are people without jobs — and maybe they did it misguidedly, but all they did is defend Lululemon to stop a wrong.’

“Its CEO has been glib in sticking to the party line,” Saunders added, referring to McDonald.

The company’s policy also raises questions about why Lululemon does not have more in-store security if it is going to have what Saunders described as a ‘draconian’ policy with respect to ordering employees not to intervene.

In 2021, the most recent year for which data is available, thefts — known in the industry as ‘retail shrink’ — equated to $94.5 billion in losses, up from $90.8 billion from 2020, according to a National Retail Federation report.

The NRF’s findings also show that retailers saw an average 26.5% increase in organized retail crime incidents in the past year, with a coincident increase in violence and aggression amid the thefts.

It is organized retail crime, which the NRF defines as large-scale theft of retail merchandise with the intent to resell the items for financial gain, that seems to have increased. In New York City, Mayor Eric Adams said that, in 2022, 327 repeat offenders were responsible for about a third of the more than 22,000 retail thefts across the city. In May, Adams announced a new plan to fight it.

At least one outlet has called into question whether the uptick in theft is truly material. The Marshall Project, a left-leaning nonprofit focused on criminal justice reform, said talk of a rise in theft is panic-driven, pointing to remarks made in January by Walgreens executives who walked back prior rhetoric about safety issues plaguing some of their stores.

Saunders said the uptick in thefts is real, though perhaps not quite as severe as some voices may suggest. He said a host of factors may be leading to more brazen thefts, including what he described as a loosening of ethics — a result of the pandemic — and the greater availability and ease of access to channels for resale.

Michael Brown, a partner and Americas retail lead at the global management consulting firm Kearney, agreed that any uptick is likely being driven by the ability to monetize stolen goods online.

‘We’re seeing this broadly across the industry, from luxury to personal care items,’ Brown said. ‘There is a marketplace for them that is formalized and easy to access.’

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President Biden on Friday repeated a false claim that his son, Beau Biden, died while serving in the Iraq War, but also incorrectly stated he ran for president while serving as vice president under former President Barack Obama.

‘You know, the bottom line is this – I ran for president – I ran for president for a basic reason. I hadn’t planned on running again for president,’ Biden said during a speech at Nash Community College in Rocky Mount, North Carolina. 

‘I had run when I was vice president, and then Barack and I spent eight years together, and then the new administration came in, and, in the meantime, things changed in our life and our family. I lost my son – we lost our son in Iraq. Anyway – I hadn’t planned on running,’ he added.

In contrast to his claims, Beau tragically passed away from glioblastoma in May 2015 at Walter Reed military hospital in Bethesda, Maryland. Beau served a tour in Iraq from 2008 to 2009. 

Biden maintains that his son’s illness may have been caused by toxic burn pits in Iraq, but has still made the claim about his son dying in Iraq on numerous other occasions. Those instances include last month while speaking to Marines stationed in Japan, and in 2022 during a speech in Colorado.

His additional statement that he ran for president while serving as vice president appeared to be a point of confusion, considering he unsuccessfully ran for the Democratic presidential nomination in 2007, but did not run again until the 2020 presidential primaries.

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Former President Trump could face decades in prison if convicted on all 37 federal counts stemming from Special Counsel Jack Smith’s investigation.

Trump was indicted on 37 federal counts, including willful retention of national defense information, conspiracy to obstruct justice, and false statements.

The maximum terms of imprisonment per count were included on the ‘penalty sheet’ of the indictment. 

But those maximum terms of imprisonment are guidelines, and ultimately, each count’s maximum sentence is up to the discretion of the judge presiding over the case.

Special Counsel Jack Smith on Friday pointed to the ‘gravity’ of the charges against the former president, but stressed that the defendants ‘must be presumed innocent until proven guilty.’

‘It’s very important for me to note that the defendants in this case must be presumed innocent until proven guilty beyond a reasonable doubt in a court of law,’ Smith said Friday. ‘To that end, my office will seek a speedy trial in this matter, consistent with the public interest and the rights of the accused.’

Trump is charged with 31 counts of willful retention of national defense information, which falls under the Espionage Act, each carrying a maximum prison sentence of 10 years in prison and/or a maximum fine of $250,000. 

Trump is also charged with conspiracy to obstruct justice, which carries a maximum prison sentence of 20 years and/or a maximum fine of $250,000. 

Trump was also charged with two counts of withholding documents or records, which carries a maximum sentence of 20 years and/or a maximum fine of $250,000. 

Trump was also charged with one count of concealing a document in a federal investigation, which carries a 20-year maximum sentence and/or a maximum fine of $250,000. 

Trump is also charged with making a false statement, which carries a maximum prison sentence of 5 years and/or a maximum fine of $250,000, and one count of ‘scheme to conceal,’ which also carries a maximum prison sentence of 5 years and/or a maximum fine of $250,000. 

Trump has been ordered to appear in federal court in Miami on Tuesday.

Trump told Fox News Digital he plans to plead not guilty.

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Former President Donald Trump attacked Special Counsel Jack Smith after his unsealed indictment shows the ex-commander-in-chief was charged with 37 counts of criminal wrongdoing over his handling of classified documents, calling him a ‘deranged lunatic.’

Posting a photo of Smith to his Truth Social app, Trump accused the prosecutor of being behind a 2013 controversy in which the Internal Revenue Service (IRS) was revealed to be targeting political groups, mainly those on the right, for increased auditing.

‘This is the man who caused the Lois Lerner catastrophe with the IRS. He went after Evangelicals and Great Americans of Faith. The United States had to apologize, and pay major damages for what this deranged lunatic did,’ Trump wrote. 

Lerner was a central figure in the IRS scandal, with lawmakers voting to hold her in contempt of Congress for what they said was insufficient testimony on the issue in 2014.

In his attack on Smith, Trump also cited the corruption case of ex-Virginia GOP governor Robert McDonnell. Smith successfully secured his conviction, though it was later overturned by the Supreme Court. 

‘He had a unanimous loss in the Supreme Court. His wife is a Trump Hater, just as he is a Trump Hater—a deranged ‘psycho’ that shouldn’t be involved in any case having to do with ‘Justice,’ other than to look at Biden as a criminal, which he is!’ Trump wrote.

Trump was charged for improperly handling classified documents and obstructing justice. His aide Walt Nauta was also indicted on six obstruction and concealment-related charges. 

The former president has said that he is not guilty of any crimes and has decried this investigation and others into his conduct as partisan witch hunts.

Smith stood before cameras on Friday afternoon, pointing to the ‘gravity’ of the crimes.

‘Today an indictment was unsealed, charging Donald J. Trump with felony violations of our national security laws as well as participating in a conspiracy to obstruct justice,’ Smith said. ‘We have one set of laws in this country, and they apply to everyone.’

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Rep. John Garamendi is demanding the Justice Department investigate the merger of the PGA Tour with Saudi-backed LIV Golf, while proposing legislation to strip the organization of its tax-exempt status.

Garamendi, D-Calif., rolled out legislation this week called the ‘No Corporate Tax Exemption for Professional Sports Act,’ after what the congressman called the Saudi Sovereign Wealth Fund’s ‘surprise takeover’ of the PGA.

That legislation would end the tax loophole that the PGA Tour benefits from to avoid paying any federal corporate income tax.

Garamendi, during an interview with Fox News Digital, said the PGA’s exemption, if left untouched, ‘will now flow to the Saudi Arabian Sovereign Wealth Fund through their acquisition of LIV.’

‘The Saudi Sovereign Wealth Fund and MBS is going to get a tax break—an American tax break,’ Garamendi told Fox News Digital, adding that the PGA pays ‘no taxes, because under the tax code, it is a charity.’

Garamendi explained that a number of professional sports leagues had tax-exempt status for years, but have since relinquished that status. 

‘PGA Tour Commissioner Jay Monahan should be ashamed of the blatant hypocrisy and about-face he and the rest of the PGA Tour’s leadership demonstrated by allowing the sovereign wealth fund of a foreign government with an unconscionable human rights record to take over an iconic American sports league and avoid paying a penny in federal corporate income tax,’ Garamendi said, adding that the merger ‘flies in the face of the PGA Tour players who turned down hundred-million-dollar paydays from the Saudi-backed LIV to align themselves with the right side of history and human decency.’

Garamendi said ‘the notion that the Saudi Sovereign Wealth Fund would pay zero dollars in taxes on their blood money and potentially billions of dollars in profits while countless American families pay their fair share while struggling to make ends meet is ludicrous.’

Garamendi described his new legislation as ‘commonsense’ that would ‘right this wrong and bring some much-needed accountability to this matter.’ 

Meanwhile, Garamendi said the PGA-LIV merger ‘creates an international monopoly in which they effectively control all professional golf, or nearly all professional golf.’

‘And when put it this way, it appears that the deal is such that Saudi Arabia controls a monopoly that controls professional golf,’ Garamendi said. ‘And so from the viewpoint of a wannabe professional golfer, they basically are going to have to bend their knee to Saudi Arabia and say, Well, what can I join? Can I be part of this? And Saudi Arabia can say yes or no. And so and so it goes.’

Garamendi said Congress and even the European Union should ‘seriously look into this.’ 

‘I would hope that the Justice Department takes it up. I would hope the European Union does and I would certainly call upon my congressional committees, for example, the House Judiciary Committee,’ Garamendi said.

Garamendi pointed to the Foreign Corrupt Practices Act, in which a foreign government ‘uses a bribe to achieve a goal could be a financial goal, it could be a political goal.’

‘So what is this deal— right? What are the financial guts of this deal? Where’s the money flowing?’ Garamendi asked. ‘Follow the money.’

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