The Mercury News

Trump appointee forced to resign

Scathing report shows loan program he over saw led to lawsuits

- By Juliet Eilperin

WASHINGTON >> Gavin Clarkson, a senior Bureau of Indian Affairs official appointed by Interior Secretary Ryan Zinke in June, resigned Monday after the department’s inspector general issued a scathing report on the loan program he oversaw.

Clarkson, who served as deputy assistant secretary for policy and economic developmen­t, ran a program that guarantees loans for tribal businesses. When Zinke appointed Clarkson on June 11, he said in a statement that his “expertise in the areas of law, finance and economic developmen­t are a valuable asset . . . as we work together with tribes to increase economic opportunit­y and promote self-determinat­ion throughout Indian Country.”

But before joining the Trump administra­tion, Clarkson served as a consultant for tribes that received loans under the program, including a controvers­ial $22.5 million loan for the Lower Brule Sioux Tribe that helped finance the purchase of a brokerage firm that eventually went under. As a result, the Interior Department is now being sued over its refusal to guarantee the remaining $20 million balance on the loan.

Clarkson’s dealings with the tribe were the subject of a detailed report published by Human Rights Watch in 2015, as well as news reports. The inspector general’s report scrutinize­d how the loan program was run under the Obama administra­tion, for which Clarkson worked as a tribal economic consultant.

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