Elon Musk’s Department of Government Efficiency (DOGE) recently exposed a scandal revealing federal employees stealing millions of taxpayer dollars to purchase luxury cars, jewelry, and vacations. The story broke on The Daily Wire on March 19, 2025, and reveals more than a decade of corruption from the Federal Mediation and Conciliation Service (FMCS), originally established to mediate disputes between unions and businesses, eventually devolved into a haven of unchecked extravagance and nepotism.
Investigations into FMCS corruption date back to the early 2010s during the Obama administration; despite disclosures of lawlessness, significant action never happened due to political inaction and a lack of effective accountability mechanisms. Implicated officials were politically protected or even promoted rather than disciplined. The Democrats opted not to pursue charges or restructure the agency, allowing systemic abuses to persist until President Trump’s administration finally took action.
Occupying an unnecessarily lavish nine-story building on Washington, D.C.’s K Street, the FMCS had only 60 of its 230 employees reporting to the office, with many working remotely long before COVID-19. Managers enjoyed oversized suites with private bathrooms; one manager even converted her bathroom into a smoking lounge. The corruption included the top high-ranking officials exploiting loopholes by classifying themselves on indefinite business trips to Washington and charging taxpayers for everyday living expenses.
Former director George Cohen notoriously used taxpayer-funded accounts to buy champagne, $200 coasters, and artwork painted by his wife. The agency also commissioned elaborate portraits of its leaders, spending thousands. FMCS employees openly disabled safeguards on government-issued credit cards, charging personal luxuries without consequence. One employee leased a BMW, and IT director James Donnen billed the government for his wife’s phone and cable services at multiple residences. Another employee, Dan Funkhouser, spent $18,000 on jewelry and used taxpayer funds for personal storage.
The story resurfaced recently and earned a massive reaction on X. For example, one account said, “BREAKING—It’s been revealed that 60 employees at the Federal Mediation and Conciliation Service (FMCS) stole millions in taxpayer funds, spending them on BMWs, jewelry, luxury vacations, and personal portraits while listing top staff as on a 6-year business trip to cover rent and meals.”
The American public was rightfully furious, causing several accounts to voice their opinions on the corruption. One X user added, “The more this corruption is revealed, the more I wonder how America survived. It’s way overdue that the officials who robbed the Country & taxpayers become to be made accountable.”
Elon Musk, the head of the Department of Government Efficiency, also weighed in on the fraud that plagued the FMCS. Elon added in response to the breaking tweet, “Yeah, this scam has been going on for a long time. Not anymore. @DOGE” Here is a Fox News interview with Musk from March 10, exposing why Democrats do not want waste and fraud turned off; watch here:
"*" indicates required fields
Although previous investigations into FMCS revealed widespread corruption, accountability remained nonexistent. Referrals to the FBI yielded no prosecutions, and some implicated employees even received promotions during the Obama administration. President Trump’s decision to dismantle the FMCS with the help of Elon Musk and DOGE finally addressed this egregious example of federal overreach and waste, closing an agency whose own employees acknowledged its uselessness and excess.
Featured image credit: screengrab from the embedded video