WASHINGTON, D.C. – After a nearly four-year long investigation, the House Ethics Committee recommends Pennsylvania Representative Mike Kelly (R- PA) and his wife to divest their holdings from Cleveland-Cliffs, a steel manufacturer, before he takes any more actions related to the company. There was a complaint that his wife bought stock based on non-public information that the congressman had learned during his official duties.
A 2021 complaint to the Committee claimed the congressman’s wife bought stock in that company based on non-public information that Rep. Kelly learned from his official work. The report states Mrs. Kelly’s purchase was different from many other investment decisions around that time.
The Committee did not find evidence the congressman knowingly or intentionally caused his spouse to trade based on insider information. The report states his wife was not fully cooperative and the committee was unable to determine whether her stock purchase was improper.
Representative Kelly’s office sent us this statement from the congressman:
“This investigation has unnecessarily lasted for nearly five years. In the years since this investigation began, the Cleveland Cliffs Butler Works plant faced an uncertain future due to the Biden administration’s reckless energy policies. Throughout this process, I have fought for the 1,400 workers at the plant, I’ve spoken with these workers, and they appreciate the hard work we have done to fight for those jobs and for Butler. My family and I look forward to putting this distraction behind us.”
The Committee said it’s rare for them to recommend divestment of stocks where there is a potential appearance of a conflict of interest. The report adds in this case, where there is evidence that the member had confidential info at the time his spouse was actively trading on the company’s stock while the member took official actions directly affecting the specific company, there is a unique and heightened ethical concern.
“Americans from all political persuasion overwhelmingly agree, members of congress should not be playing the stock market while we hold office while we make policy that affects business and industry, while we have extraordinary access to confidential information,” said Sen. Jon Ossoff (D- GA) during a congressional hearing.
Members are allowed to trade stocks but are prohibited to take part in insider trading. There’s a renewed push by members on both sides to ban members from trading while they hold office.
“We should be focused on the public’s interest and not our private, financial interest,” said the Senator.
The report from the committee adds that they found that the congressman’s failure to acknowledge the seriousness of the alleged misconduct and the committee’s investigation violated a clause of the code of official conduct.
