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Outside experts who spoke to CNN were shocked that ethics officials at the postal service approved this arrangement, which allows DeJoy to keep at least $30 million in XPO holdings.

DeJoy and USPS have said he fully complied with the regulations.

Raising further alarms, on the same day in June that DeJoy divested large amounts of Amazon shares, he purchased stock options giving him the right to buy new shares of Amazon at a price much lower than their current market price, according to the disclosures.

This could lead to a separate conflict, given President Donald Trump’s disdain for Amazon, and his reported effort in 2018 to pressure DeJoy’s predecessor to raise prices on Amazon and other firms, while complaining about its founder Jeff Bezos. The Treasury Department also recently struck a loan deal with USPS that gives the Trump administration more leverage to push for higher shipping prices – one of his pet projects.

DeJoy already faces bipartisan criticism for implementing disruptive changes after taking over the USPS on June 15, including eliminating overtime for many workers. Democrats also claim he is intentionally slowing down mail delivery to sabotage absentee voting in the November election – a charge he denies.

Before joining the administration, DeJoy, a Trump ally and fundraiser, was on the board of directors at XPO Logistics, a large transportation and logistics company that does business with the USPS and has contracts with other US government agencies, such as the Department of Defense. In 2014, XPO acquired DeJoy’s company, New Breed Logistics, for $615 million.

These questions about DeJoy come at a time of incredible strain at USPS. The agency is already strapped for cash and facing funding shortages. And two members of the board of governors quit earlier this year, at least in part to protest efforts by Trump aides to control USPS finances and operations. DeJoy’s supporters say he’s the right person for the job because he can streamline the struggling agency with his business expertise.

‘Doesn’t pass the smell test’

When announcing DeJoy’s appointment, the USPS board of governors noted that New Breed “was a contractor to the U.S. Postal Service for more than 25 years,” and received awards for high quality in the 1990s. The announcement didn’t mention XPO’s ongoing ties to the USPS.

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