Federal authorities continue to embrace and implement Diversity, Equity, and Inclusion (DEI) principles in their work.

In the heart of St. Louis, a legal battle is unfolding between two real estate developers, Sidarth Chakraverty and Victor Alston, and the federal government. The brothers, who are known for developing housing in blighted neighbourhoods, have been indicted on wire-fraud charges for allegedly misrepresenting their eligibility for the city's Minority Business Enterprise and Women Owned Business Enterprise (M/WBE) program.

The M/WBE program, designed to support minority-owned and women-owned businesses, has been under scrutiny due to its administrative process. The program's guidance has been criticised for being obscure, arbitrary, and constantly shifting, making it difficult for businesses to comply.

However, even if Chakraverty and Alston had satisfied the program's requirements, they could not have lawfully been awarded tax abatements based on those preferences. This point was underscored in the recent Supreme Court case, Kousisis v. United States, where Justice Clarence Thomas highlighted that conditioning tax benefits on the use of race- and sex-based preferences is unconstitutional.

The federal wire-fraud statute does not apply to discretionary regulatory actions, such as tax incentives. Furthermore, the misleading statements that the brothers allegedly made could not have made it easier for them to get the abatements and so cannot be material under federal law.

The prosecution of Chakraverty and Alston is seen as an illustration of the ongoing DEI (Diversity, Equity, and Inclusion) phenomenon in government that the Trump administration is trying to shut down. The administration has been attempting to clamp down on DEI programs, but unelected officials are continuing to advance racialism and identity politics in violation of the law.

The M/WBE program's race- and sex-based preferences have also been a contentious issue. The city of St. Louis suspended the program due to anti-DEI executive orders and Justice Department guidelines. The program, for instance, stopped counting South Asians as minorities and began setting targets specifically for black subcontractors.

The St. Louis Development Corporation (SLDC) also added a target for Native American contractor participation, though there are no recognised Indian tribes in Missouri. This move has raised questions about the fairness and legality of the program.

The lone prosecutor in the Chakraverty/Alston case, Hal Goldsmith, filed responses to defense motions without seeking approval from the newly appointed interim U.S. Attorney, Thomas Albus. However, Albus later filed paperwork to dismiss the charges against Chakraverty and Alston.

The search results do not provide information about the person who recently served as interim U.S. Attorney and enabled the charges against Sidarth Chakraverty and Victor Alston to be dropped.

Ilya Shapiro, director of constitutional studies at the Manhattan Institute, has been a vocal critic of the M/WBE program. He is the author of the book "Lawless: The Miseducation of America's Elites", where he discusses the dangers of unelected officials advancing racialism and identity politics in violation of the law.

As the legal proceedings continue, the case of Chakraverty and Alston serves as a reminder of the complexities and controversies surrounding DEI programs and the role of the law in regulating them.

Federal authorities continue to embrace and implement Diversity, Equity, and Inclusion (DEI) principles in their work.