X Strategies, the political consulting firm run by Alex Bruesewitz, a prominent outside adviser to President Trump, has filed a motion asking a federal judge to remove accusations from the court record that Bruesewitz received hundreds of thousands of dollars from Qatar-linked interests. The motion, submitted Thursday, is part of an escalating legal dispute between Bruesewitz and Derek Utley, who co-founded the firm in 2017.
The firm, which manages Trump's social media presence, including the Trump War Room and Team Trump accounts on X, sued Utley in September, alleging he embezzled at least $5 million to fund a lavish lifestyle and a gambling addiction. In a counterclaim filed Monday, Utley alleged that Bruesewitz, who is not a defendant in the lawsuit, received approximately $500,000 from "individuals associated with Qatar" for an undisclosed business arrangement. The filing did not provide evidence to support the claim.
Bruesewitz, who played a key role in Trump's 2024 digital strategy, has denied the allegations and vowed to take legal action against anyone who "falsely asserts" he was paid by foreign interests. In a social media post on Tuesday, he wrote: "I have never been paid by Qatar, and the allegations referenced in the filing submitted by a disgruntled former employee have already been debunked."
In its motion, X Strategies accused Utley of using the lawsuit to damage Bruesewitz's reputation, describing the filing as "nothing more than a political smear campaign masquerading as a court filing." The firm is asking the judge to strike the preliminary statement and other background sections from both Utley's original filing and a corrected version submitted later Monday.
Bruesewitz's attorneys argue that the allegations are irrelevant to the underlying lawsuit and are aimed at Bruesewitz, who is not a party to the case. The original filing named a political consultant as having received information about the alleged payment from Qatari-linked individuals. Utley's attorneys withdrew that filing and submitted a corrected version that removed the consultant's name but kept the allegation.
X Strategies submitted a sworn affidavit from the consultant Thursday, stating he had no knowledge of any such payment and that neither Utley nor his attorneys contacted him before the original filing. The consultant's identity was not disclosed in the motion.
The legal battle between the two co-founders began in September when X Strategies sued Utley, accusing him of embezzling at least $5 million and concealing the spending through falsified financial records. Utley has denied the accusations and filed a counterclaim Monday, alleging he was wrongfully terminated after requesting medical leave.
The dispute has drawn attention due to Bruesewitz's close ties to Trump and his role in shaping the president's digital strategy. The allegations, if proven, could raise questions about foreign influence in Trump's inner circle, though Bruesewitz has strongly denied any wrongdoing. The motion to strike is scheduled for a hearing before U.S. District Judge [Judge Name] in [Court Name] on [Date].
This case comes amid broader scrutiny of Trump associates and their foreign connections. For more on related legal battles, see the Supreme Court's recent ruling on presidential firing power, which has implications for executive authority. Additionally, Trump's decision to pull Vance from Iran talks highlights the administration's focus on domestic political issues.
