Newsom's first biz was funded by a billionaire

Newsom opened his first wine store, PlumpJack, in 1992 with the help of family friend and oil heir Gordon Getty — a few years before he got his start in politics. Now, the PlumpJack group has grown to a hospitality empire of wineries, restaurants, and hotels worth over $400 million.

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Here’s what Newsom owns through PlumpJack Group, and why some people are concerned it qualifies as a conflict of interest ahead of Newsom’s possible presidential run.

Newsom owns wine shops, vineyards, hotels and clubs

PlumpJack might have started as a wine shop, but it didn’t stay idle with each passing grape harvest.

According to Forbes, Newsom currently owns 11 properties through PlumpJack. The majority are wine-related, including the original PlumpJack Wine & Spirits location, a second one that opened in 2001, and four more wineries.

Newsom currently has one hotel through the company: the PlumpJack Inn and Cafe in Olympic Valley. The PlumpJack group used to own more, though. Newsom also has the Balboa Cafe in San Francisco, which sits within walking distance of the first PlumpJack Wine & Spirits and White Rabbit nightclub.

He owns two residences in California through PlumpJack, as well: one in Fair Oaks and one in Kentfield. Both homes are worth millions of dollars.

It’s been a while since Newsom had any say in how these businesses are run. Newsom put his ownership interest in PlumpJack in a blind trust in 2018. He isn’t allowed to manage or be aware of the business side of things.

When the blind trust was established, it was to be managed by attorney and family friend Shyla Hendrickson. She’s totally in control of the assets — she can even choose to sell them off without telling Newsom.

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Indeed, PlumpJack Group used to hold more properties, including three other hotels.

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Do Newsom’s investments represent a conflict of interest?

Newsom placed his ownership stakes in a blind trust after he was elected Governor of California to avoid a conflict of interest. But some say he should have sold his stakes outright if he truly wanted to avoid any ethical quandaries as governor.

“In Newsom’s case, if he can’t sell PlumpJack or other things he owns, he’s not going to be blind,” retired attorney Colleen McAndrews told the LA Times.

Unfortunately, Newsom has made it clear he doesn’t plan to sell.

“These are my babies, my life, my family. I can’t do that. I can’t sell them,” Newsom told reporters during his run for governor in 2018.

While the properties are in a blind trust, Newsom can’t use insider information to give his businesses an edge. But he can still be swayed toward legislation that helps his businesses thrive, especially if he becomes President.

Just as political actors can spend money at President Donald J. Trump’s properties in an attempt to curry favor with him, people can do the same at Newsom’s properties.

“Trump and his opponents have succeeded in defining ethics in almost a completely situational and partisan way,” politics and communications professor Dan Schnur told CBS News. “Unfortunately, that almost certainly oozes down to state-level politics and government.”

Gavin Newsom did not immediately respond to a request for comment.