Pete Hegseth Faces New Allegations of Alcohol Abuse and Mismanagement During Tenure with Veteran Nonprofits

In a troubling turn of events, Pete Hegseth, the selected appointee of President-elect Donald Trump for the Pentagon, finds himself at the center of controversy due to a New Yorker report encompassing allegations of alcohol misuse, sexual misconduct, and mismanagement during his tenure overseeing two veterans' nonprofit organizations.

Key Allegations

The report, released on a Sunday by The New Yorker, cites a previously undisclosed whistleblower complaint dated 2015, alleging that Hegseth exhibited drunken behavior on multiple occasions while serving as the president of the Concerned Veterans for America (CVA). The report specified that his intoxication was so severe that he had to be carried out of the organization's events. Additionally, Hegseth, at one point, had to be restrained from joining the dancers on the stage of a Louisiana strip club while under the influence, as reported by the Whistleblower complaint.

Improprieties and Misconduct

Moreover, it is alleged that Hegseth, despite being married at the time, and other members of his management team, engaged in sexual pursuits directed at the organization's female staffers. They reportedly categorized the women into two groups - the 'party girls' and the 'not party girls,' according to the observations made by The New Yorker's Jane Mayer.

Departure from CVA and Financial Mismanagement

Hegseth was compelled to step down as president of CVA in 2016 due to concerns regarding his mismanagement and misuse of alcohol during work hours, as stated by the magazine, based on information from three credible sources, one of whom contributed to the whistleblower report. The report further unveiled that a previous organization under Hegseth's leadership, Vets for Freedom (VFF), amassed substantial debt during his tenure, eventually rendering it incapable of fulfilling its financial obligations. The situation deteriorated to the extent that VFF's donors devised a plan to relieve Hegseth of his responsibilities, leading to a downgrade in his job title on annual tax filings and a reduction in his compensation until his departure in 2012, as reported by The New Yorker.

Denial and Refutation

Hegseth's attorney, Timothy Parlatore, has not commented on the allegations made to CNBC. However, The New Yorker quoted a statement attributed to Parlatore, as per his claim from an advisor to Hegseth. The statement dismissed the allegations to be "outlandish claims laundered through The New Yorker by a petty and jealous disgruntled former associate of Mr. Hegseth," urging for a more authentic approach to journalism.

Trump's Response and Background

President Trump's transition team has yet to respond to CNBC's request for comment regarding the allegations against Hegseth. Hegseth, a decorated U.S. military veteran and former Fox News host, was designated by Trump to assume the role of secretary of the Defense Department. However, upon the revelation of police investigation in October 2017 regarding an alleged sexual assault involving Hegseth at a hotel during a Republican women's convention, his nomination came under immediate scrutiny. Although Hegseth asserted the encounter was consensual, he was not criminally charged following the investigation.

Settlement and Financial Implications

Several years post the alleged incident, Hegseth opted to settle the matter with the accuser, disclosing the arrangement included a confidential financial component, while maintaining his innocence. Hegseth's attorney represented that this choice was made at the "height of the MeToo movement." Furthermore, a police report revealed an interaction between Hegseth and the accuser at a hotel swimming pool, with a hotel employee describing Hegseth as "very intoxicated," while the woman was perceived to be coherent regarding the situation. This assertion was contradicted by the woman in question, as she expressed her inability to recall significant portions of the evening's events with Hegseth, leading her to suspect the possibility of tampering with her drink.