"Judicial ethics experts said that federal laws would not prohibit Trump from nominating Barry, who was elevated to the appeals court by President Bill Clinton in 1999.
“I doubt the anti-nepotism statute covers it because it’s not a branch of government he controls,” said Richard Painter, a University of Minnesota professor who served as an ethics enforcer in the George W. Bush administration.
And he and Stephen Gillers, a law professor at New York University, also agreed that a Justice Barry would not be constrained from ruling on all issues involving the federal government."
https://www.washingtonpost.com/politics/courts_law/3-questions-about-the-supreme-courts-future-yes-trump-probably-could-nominate-his-sister/2016/11/21/180a0a42-af2c-11e6-840f-e3ebab6bcdd3_story.html?hpid=hp_hp-top-table-main_scotusreporter-1110a%3Ahomepage%2Fstory
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