A legal dispute between business partners has brought serious allegations to light concerning potential undisclosed foreign business relationships involving a prominent adviser to President Donald Trump.
Derek Utley, who co-founded the digital firm X Strategies in 2017 with conservative media strategist Alex Bruesewitz, has filed counterclaims alleging that his former partner pursued substantial financial relationships with foreign entities while concealing those arrangements. The allegations, submitted in federal court documents Monday, represent Utley’s response to a lawsuit filed against him by X Strategies in September.
Bruesewitz has served as a top outside adviser to President Trump, having helped shape the 2024 campaign’s digital strategy. X Strategies maintains several prominent social media accounts associated with the Trump administration.
The original lawsuit against Utley claimed he embezzled and gambled away millions of dollars from the firm. Utley’s filing denies these allegations and characterizes the lawsuit as a marketing ploy. He claims he was terminated without cause after requesting medical leave, though X Strategies had asserted he submitted fraudulent medical records to obtain six months of paid leave.
The countersuit alleges that Bruesewitz pursued business and financial relationships with foreign individuals and governmental representatives from Qatar, the United Arab Emirates, and Syria. According to the filing, Bruesewitz received approximately five hundred thousand dollars from individuals associated with Qatar in connection with an undisclosed business or consulting arrangement. The court documents do not include supporting documentation for these claims.
Utley’s filing further alleges that Bruesewitz sought to charge an annual advisory fee of one million dollars to a Copenhagen-based investment firm, with proposed services including providing access to American governmental officials, federal agencies, and financial institutions. The court filing raises questions about potential registration and disclosure obligations under the Foreign Agents Registration Act, which requires public disclosures from those involved in lobbying or other activities representing foreign interests.
Additionally, the filing claims Bruesewitz told Utley that his honeymoon hotel stay in the Maldives was paid for by two Syrian billionaires who provided access to a suite valued at fifteen thousand dollars per night.
Bradford Cohen, Bruesewitz’s attorney, denied all allegations and characterized them as potentially defamatory. He stated the legal team would vigorously defend against the claims and described them as untrue, exaggerated, or completely fabricated. Cohen characterized the countersuit as an act of desperation.
The allegations present a notable contrast to public statements Bruesewitz has previously made. During a June interview, he stated that removing foreign influence from the political ecosystem, particularly online, was a passion project of his. He explicitly claimed he does not accept any foreign payments, including money from Gulf countries, India, Russia, China, or any other foreign nations.
Bruesewitz has also publicly advocated for conservative influencers to disclose their relationships with foreign governments seeking to influence the Trump administration.
Neither Utley nor the White House responded to requests for comment regarding the allegations.
The legal battle continues as both parties prepare to present their cases in federal court. The outcome may have implications for questions surrounding foreign influence in American political consulting and digital strategy operations.
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