X Strategies, a social media consulting firm connected to President Donald Trump, filed a lawsuit against its co-founder for allegedly embezzling millions of dollars from the company.
The Alleged Scheme
The Palm Beach-based business sued Derek Utley, alleging he exploited his position to siphon funds from 2021 until 2026. Utley served as chairman and CFO while owning 50% of the company through Stark Defense Industries, a fellow defendant.
Utley used company money to gamble at the Hard Rock Casino in South Florida. He spent 200 days of 2025 gambling at the venue alone. While he won $26 million that year, he also lost $29 million, resulting in a net loss of $3 million for the company.
According to the complaint, Utley disguised personal withdrawals as legitimate business transactions. He also moved funds between company accounts on a near-daily basis to hide the unauthorized transfers.
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The lawsuit claims Utley funded an extravagant lifestyle with the stolen money. He purchased luxury sports cars, designer jewelry, and first-class airfare for himself and his then-girlfriend, Anna Weisheimer. Weisheimer, also a defendant, has stated she has nothing to do with the dispute.
Paul Punzone, a partner at Holland Knight LLP representing X Strategies, declined to comment on Utley’s denial of his CFO role. Punzone confirmed the company stands behind the allegations.
Discovery of the Theft
Despite the alleged damage, X Strategies is seeking compensatory and special damages believed to be in excess of $5 million. The company also seeks disgorgement of profits obtained by Utley and punitive damages.
Current Status
An ongoing forensic audit of the business’ finances has confirmed Utley embezzled at least $5 million. X Strategies provides social media strategy and political consulting services, according to its website, and reportedly runs some of President Donald Trump’s social media accounts, as reported by Politico.
