Governor Gavin Newsom has an ownership stake in a restaurant group that received a federal loan through the Paycheck Protection Program established under the CARES Act in response to business closures associated with the COVID-19 pandemic.
According to data released by the U.S. Treasury, Plumpjack Group received $350,000 in aid due to the impact of coronavirus. The loan saved 14 jobs at the company, according to a report by Eater SF.
Sacramento attorney and former federal prosecutor Bill Portanova says, while Newsom owns the Plumpjack Group, which operates several bars, restaurants, and wineries, the company is currently controlled by a blind trust.
A blind trust is a financial arrangement in which a person in public office gives the administration of private business interests to an independent trust in order to prevent conflict of interest. Under the trust, the owner does not know how the assets are managed.
A Plumpjack Group representative was unable to comment for this story, but Newsom has previously insisted that he has nothing to do with the day-to-day operations of company.