Gubernatorial GOP Hopeful in California May Have a Difficult Conflict of Interest

Meg Whitman, currently vying to be the GOP candidate in California’s upcoming gubernatorial election, has considerable wealth invested in multiple hedge funds that would likely cause conflicts of interest if eventually elected. While Whitman could transfer her investments to a blind trust, California law presumes that the Governor has full knowledge of his or her investments before placing them in a blind trust.

According to Jack Dolan and Evan Halper, Whitman’s promise of a blind trust for her assets may be impossible to achieve quickly, LA Times, March 17, 2010, “[f]or a trust to be truly blind, Whitman would have to sell her whole portfolio and hand the cash to an advisor who would reinvest it without her input or knowledge.”  This could be difficult, or impossible, considering that Whitman may be bound by contract or unable to find buyers.

See Jack Dolan & Evan Halper, Whitman’s promise of a blind trust for her assets may be impossible to achieve quickly, LA Times, March 17, 2010.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this to my attention.