Kash Patel, President Donald Trump’s pick to lead the Federal Bureau of Investigation, could join the list of people who are set to make a fortune when Chinese fast-fashion brand Shein goes public as soon as this year.
Patel formerly consulted for Shein’s parent company, Elite Depot, and was compensated with stock worth anywhere from $1 million to $5 million, according to the financial disclosures he submitted as part of his confirmation process to lead the FBI. His financial disclosures state he plans to keep the stock if confirmed.
Now, critics in the national security sphere have told the The Wall Street Journal they’re concerned about Patel maintaining ties with the company. While Shein relocated its headquarters from China to Singapore in 2021, the company still uses thousands of Chinese factories as part of its fast-fashion model.
Charles Kupperman, former deputy national security adviser during Trump’s first term who worked closely with Patel, said the 44-year-old should “divest all of his interests” if confirmed.
“This is not a U.S. company and it’s a conflict of interest financially,” Kupperman said.
Patel’s stock wasn’t vested as of January, the Journal reports, but the shares will become available to him quarterly through November. The FBI also cited a “remote” likelihood that his duties would involve the company. Compensation experts still warn he will, in effect, still have a continuing relationship with a foreign company, the Journal says.
Patel has committed to not participating in anything that “has a direct and predictable effect on the financial interests” while serving as FBI director. He has already agreed to sell the shares he owns in public companies such as Meta and Apple if he is confirmed.
“He looks forward to a swift confirmation that will allow him to start his endeavor to refocus the bureau to making our country safer for all Americans,” Patel’s spokesperson told the Journal.
Shein’s workplace practices have been questioned across the world, and previous attempts to go public in the U.S. faced bipartisan opposition under the Biden administration, including from now-Secretary of State Marco Rubio.
American law blocks the import of many good from China’s Xinjang region over concerns about forced labor. The company has faced allegations that much of its clothing includes cotton from the area. In response, Shein said it has a “zero toleratnce policy” for labor abuses and complies with U.S. law, according to the Journal.
The Senate will vote on whether to confirm Patel on Thursday — with the chamber under Republican control, it is likely he will succeed.
If confirmed, Patel would serve a ten-year term as FBI Director after his predecessor, Christopher Wray, resigned this year despite not being done with his term. Trump nominated Wray to the position in 2017 during his first term.
Despite support from Republicans, Democrats in the upper congressional chamber have shown stark opposition to Patel’s nomination. The lawmakers have pointed to Patel’s false claim that federal agents orchestrated the January 6, 2021, Capitol riots and his commitment to going after members of the media.
Patel has promised a team of “all-American patriots” across government will “come after” members of the media he claims “lied about American citizens” and “helped Joe Biden rig presidential elections.”
“We’re going to come after you, whether it’s criminal or civilly, we’ll figure that out,” Patel said on Steve Bannon’s War Room podcast.
