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Labor Secretary resigns amid affair, fraud allegations

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Labor Secretary resigns amid affair, fraud allegations
Key Points
  • Labor Secretary Lori Chavez-DeRemer resigned amid misconduct probe
  • Allegations include affair with bodyguard, travel fraud, misuse of funds
  • Inspector General investigation ongoing; four other staffers resigned

Labor Secretary Lori Chavez-DeRemer resigned on Monday amid an internal misconduct probe, according to a White House spokesman. Brian Sloan, her bodyguard, resigned amid allegations of having an affair with her, according to Politico, which cited two department officials. Sloan was placed on leave amid an Inspector General probe into allegations of unprofessional conduct by Chavez-DeRemer, multiple sources reported. Chavez-DeRemer has denied the allegations and is cooperating with the Inspector General's investigation, her attorney said. Her personal attorney, Nick Oberheiden, stated that she strongly disputes the allegations but believes resignation is in the country's best interest.

An internal complaint obtained by The New York Post alleges that top staffers at the Department of Labor engaged in travel fraud, creating made-up business trips using taxpayer funds. The complaint also alleges that Chavez-DeRemer and Sloan traveled to Red Rocks Casino Resort and Spa in Las Vegas during the government shutdown for her niece's birthday. Two other trips to Las Vegas were cited where video allegedly captures them behaving unprofessionally, according to the complaint. Chavez-DeRemer is accused of making ten of her 50 official trips to Nevada, Oregon, Michigan, or Arizona, including three of five trips in November. The Inspector General's complaint further alleges that she used government trips to give a brief speech then 'goes out drinking at night' using government money. Accusations of taxpayer-funded travel were corroborated, and investigators heard staff were instructed to conceal items on the secretary's official schedule, sources said.

The Inspector General's complaint also alleges that Chavez-DeRemer maintains a stash of bourbon, Kahlua, and champagne at her office and drank on the job. Multiple sources reported that she made her aides run personal errands. The New York Post reported that she allegedly took subordinates to a strip club in Oregon on April 18, 2025, using $2,890.06 in taxpayer funds. A whistleblower complaint alleged that she drank in the office during work hours, created a hostile work environment, and pursued an extramarital affair with her security guard. The probe broadened over three months, involving dozens of staff interviews, and investigators gathered evidence of an alcohol stash in the secretary's office and that she took subordinates to an Oregon strip club, sources said.

Chavez-DeRemer allegedly had at least three meetings with her employee and alleged partner in September and October while either waiting for her security team to leave or after telling them they weren't needed, according to the internal complaint. The complaint cites these meetings as part of the pattern of unprofessional conduct.

She strongly disputes the allegations but believes resignation is in the country's best interest.

Nick Oberheiden, Chavez-DeRemer's personal attorney

White House communications director Steven Cheung announced that Chavez-DeRemer will leave the administration to take a position in the private sector. Keith Sonderling is serving as acting Labor Secretary, Cheung confirmed. Deputy Labor Secretary Keith Sonderling will replace Chavez-DeRemer as acting secretary, sources told The Post. Cheung praised Chavez-DeRemer's performance, stating she did a phenomenal job protecting workers, implementing fair labor practices, and helping Americans gain new skills. Chavez-DeRemer stated she was looking forward to the future and honored to serve. White House and Labor Department representatives called the allegations baseless and categorically false when first reported.

Four other staffers at the Department of Labor were investigated and resigned amid the Office of Inspector General's inquiry, sources told The Post. Inspector General Anthony D'Esposito had been expected to conclude the Labor Department investigation in the coming weeks, sources noted. The initial reports prompted a parallel probe by Senate Judiciary.

Chavez-DeRemer is the third cabinet official to depart the Trump administration this year, sources told The Post. President Trump fired Homeland Security Secretary Kristi Noem in March and Attorney General Pam Bondi in April.

It remains unclear whether Chavez-DeRemer resigned or is still in office, as some reports suggest she remains in her position. The specific evidence gathered by the Inspector General regarding the allegations has not been publicly disclosed. The nature of the private sector job Chavez-DeRemer is taking has not been revealed. It is unknown whether any of the allegations were substantiated by the investigation. The role of the Senate Judiciary parallel probe in the outcome is also unclear.

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Labor Secretary resigns amid affair, fraud allegations | Reed News