X Strategies, the political consulting firm that runs several of President Trump’s top social media accounts, has filed a federal lawsuit against its former chair and chief financial officer, Derek Utley. The company, co-founded in 2017 by Alex Bruesewitz and Utley, accuses him of embezzling at least $5 million. Utley oversaw the firm’s finances and had exclusive access to its bank accounts.
According to the complaint filed in South Florida, Utley used company funds on luxury sports cars, designer clothing, jewelry, first-class travel, and heavy gambling. In 2025 alone, the lawsuit claims he spent 200 days at the Seminole Hard Rock Hotel and Casino and gambled $29 million in company money on slot machines, resulting in a $3 million net loss absorbed by the firm while he kept the winnings. He is also accused of using company money for personal investments and a Miami fitness studio.
The scheme began to unravel after a new president noticed cash shortfalls. A third party later alerted the firm that Utley had called from a Las Vegas casino while highly intoxicated, pleading for an urgent wire transfer he claimed was needed for payroll. When confronted, he admitted stealing millions, citing low self-esteem, a desire to impress others, and gambling and alcohol addictions. He resigned as chair and CFO in April but initially remained an employee before being fired after submitting fabricated medical records to obtain six months of paid leave.
The company further alleges that after his termination Utley told clients the firm had banking problems, directed outstanding payments to himself, stole company mail, and solicited clients for a competing business.
