A House Panel tasked with Investigating Potential Corruption Charges against Fellow Members of Congress, on Friday called on a PA Republican to Divest His Family’s Holdings from a Steel Manufacturer, citing Concerns around the Appearance of Wrongdoing. The Bipartisan Ethics Committee had been Investigating a Complaint that Rep. Mike Kelly’s (R-PA, 16th District) Wife bought Stock in Cleveland-Cliffs, an Ohio-based Company, based on Non-Public Information gleaned from Kelly’s Position as an Elected Official.
Although Kelly’s Wife was Not Fully Co-Operative with the Probe, the Panel “did not find evidence that [the Lawmaker] Knowingly or Intentionally caused His Spouse to Trade based on Insider Information.” The House Ethics Committee also Released Updates on its investigations into Reps Alexandria Ocasio-Cortez (D-NY, 14th District) where I was born, and Shelia Cherfilus-McCormick (D-FL, 20th District).
In May, the Office of Congressional Ethics referred several Allegations to the House Ethics Committee, including Claims Cherfilus-McCormick accepted Campaign Contributions tied to Official Actions and Requested Community Project Funding for a For-Profit Entity.
The South Florida Congresswoman, who Represents Portions of Palm Beach County, has Previously faced Scrutiny over Her Campaign Activities and the use of Her Congressional Office. And Earlier this year, a Florida State Agency Sued a Company Owned by Her Family, alleging it Overcharged the State by nearly $5.8 million for Pandemic related Work, and has Refused to Return the Funds.
In a Statement, Cherfilus-McCormick Underscored that the Ethics Panel had Not reached any Final Decision and that the Further Review does Not Mean She made any Violations. In a Statement, the the Ethics Panel had Not reached any Final Decision, and that the further Review does Not mean they made any Violations.
The Panel urged Kelly and His Wife, to Divest their Holdings before He takes any more Official Actions related to Cleveland-Cliffs. Lawmakers are barred from Insider Trading under the STOCK Act, which Congress Passed in 2012, in Direct Response to Concerns about Lawmakers and Government Officials using their Proprietary Information to Advance their Own Personal Gain. Officials also Cannot give Such Information to Others for the purposes of Stock Trading.
Still, the Committee was Concerned that Kelly’s Wife bought more Stock during the Investigation, and Kelly did Not Disclose the Purchase in a Timely Manner, nor did He Answer Questions about it.
In a Statement, Kelly said, “My family and I look forward to putting this distraction behind us.” He added: “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 (D) 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.”
The Committee Concluded that Ocasio-Cortez, Impermissibly accepted Gifts related to Her Appearance at the 2021 Met Gala. The Ethics Report released Friday, notes that Ocasio-Cortez “proactively took steps to ensure her compliance with the Gift Rule, including by engaging counsel prior to her attendance and by arranging to ‘rent’ her apparel and to pay for various services out of her personal funds.” The Committee commended Her for those Efforts, but found that She relied on Counsel, Staff and Designers to Calculate Fair-Market Rates for Items She Wore.
“Those calculations did not fully account for the true cost of the unique goods and services she received,” the Report States. “While the Committee did not find that Representative Ocasio-Cortez’s violations were knowing and willful, she nonetheless received impermissible gifts and must bear responsibility for the other conduct that occurred with respect to the delays in payment,” the Report continues.
The Committee Ruled that it would be Appropriate for the New York Democrat to make Additional Payments, at which point it would consider the Investigation Closed. “She accepts the ruling and will remedy the remaining amounts, as she’s done at each step in this process,” Ocasio-Cortez’s Chief-of-Staff, Mike Casca, said in an emailed Statement Friday.
The House Ethics Committee is an Internal and typically Secretive Body made up of Five Democrats and Five Republicans. Rep. Michael Guest (R-MS, 3rd District), is the Chair and Rep. Mark DeSaulnier (D-CA) is the Ranking Member. Also on Friday, the Committee announced it would Extend Probes into Rep. Henry Cuellar (D-TX, 28th District) and Florida Democratic Rep. Sheila Cherfilus-McCormick.
The New York Times reported earlier this Month, that the Justice Department is continuing its Bribery Case against Cuellar, who, along with His Wife, was Indicted by a Federal Grand Jury in 2024, for their alleged Participation in a Yearslong Scheme involving Azerbaijan and a Mexican Bank. Both Cuellar and His Wife have Pleaded Not Guilty.
“The Committee is aware of the risks associated with dual investigations and is in communication with the Department of Justice to mitigate the potential risks while still meeting the Committee’s obligations to safeguard the integrity of the House,” the Committee said in a Statement.
As for Cherfilus-McCormick, the Ethics Committee has Voted to Reauthorize an Investigative Subcommittee, according to Friday’s Release, which also noted that “the mere fact of an investigation into these allegations does not itself indicate that any violation has occurred.”
In May, the Committee Released a Referral it Received, which Summarized a Series of Potential Violations, including possibly Requesting Community Project Funding that would be Redirected to a For-Profit Entity.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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