President Donald Trump stated on Saturday, October 31, 2026, that it was "unacceptable" for his former attorney, Alina Habba Mildon, to secure a $50 million private contract while she was employed at the U.S. Department of Justice. Speaking to reporters at his Mar-a-Lago club in Palm Beach, Florida, Trump described the arrangement as "obnoxious and outrageous." He stated that he had informed Habba Mildon he did not want her to be paid for the work.
The New York Times reported last week that the family of Julio Herrera Velutini, a Venezuelan banker, guaranteed Habba Mildon more than $50 million over a four-year period. Herrera had previously faced U.S. felony bribery charges before reaching a plea deal in August 2025. The contract, signed with Herrera’s family company, Concord Partners, reportedly pays $10 million annually plus bonuses. President Trump later pardoned Herrera on January 15, 2026.
According to reporting, Habba Mildon signed the contract in late October 2025 while serving as the acting U.S. attorney in New Jersey. A court subsequently disqualified her from that role, leading to her resignation on December 8, 2025. She was appointed as a senior adviser to the attorney general that same day. The New York Times reported she began her employment at Concord on January 1, 2026, while still serving as a senior adviser at the Justice Department.
For the public and federal workforce, this case highlights the enforcement of ethics rules regarding outside income and conflicts of interest for government attorneys. Habba Mildon has denied any wrongdoing, stating last week that she was "never paid for a pardon" and never met with White House or Justice Department officials regarding a pardon for anyone. The Justice Department, which oversees the conduct of its senior advisers and U.S. attorneys, has not yet issued a formal comment on the contract or the president's statements.
The incident sets a precedent regarding the scrutiny applied to private business deals struck by acting federal prosecutors while they are in office. The concrete impact remains centered on the legal and ethical standing of a former interim U.S. attorney and senior adviser. What happens next depends on whether federal oversight bodies or the Justice Department launch a formal review into the timing of the contract and the subsequent pardon. No specific court dates or legislative actions have been scheduled as of October 31, 2026.