Representative Ilhan Omar's Sudden Investment Windfall
In a June of 2024 story in the Rhode Island Currant, U.S. representative for Minnesota Ilhan Omar’s (D-MN) husband was accused of defrauding investors related to their ownership of a winery the couple owned named eStCru.
Omar’s husband and his business partner denied any impropriety, but simply stated that the loss of investor money was a result of the difficulties of running a winery, particularly around the COVID-19 pandemic. Another business venture of Omar’s husband related to a marijuana business in South Dakota was also demanding money through the courts.
But the couple pleaded poverty according to the story:
But discovery documents in that case show Hailer’s businesses have little in their bank accounts. According to answers Hailer provided in court documents in February this year, eSt Ventures had 5 cents in its bank account.
Rose Lake Capital had $42.44 and Rose Lake Inc. had $10. ESTCRU had $650. Hailer’s personal checking account had $3.05.
That story was written in 2024 and at the time representative Omar listed not much in income or assets on her financial disclosure for the U.S. House of Representatives.
But a year later and things changed significantly. What was previously a maximum of $208,000 in reported assets suddenly became $30 million largely due to their holdings in Rose Lake Capital. Their holdings in the winery eStCru also went from a maximum of $50k to $5 million within a year. The filings give no detail about the source of the sudden windfall.
Omar is no stranger to financial scandal as she was previously embroiled in an issue related to her husband’s political consultancy group, E Street Group, along with the same business partner as the winery. Omar used that consultancy on her 2020 campaign, paying it $2.78 million for “digital advertising, fundraising consulting and mail production and postage” but cut ties following criticism.
A formal complaint about the firm accused it of using campaign funds for Omar and her husband’s lifestyle.