Republican rep. violated House’s code of conduct

Representative Mike Kelly violated the House’s code of conduct, according to a new report from the House Ethics Committee. The finding follows a years-long investigation into whether Kelly shared confidential information that benefited his wife’s investment in a steel company.

Investigation

The committee launched the investigation after questions arose about stock purchases made by Kelly’s wife, Victoria Kelly. At the time, Rep. Kelly was involved in implementing tariffs that protected production at a steel plant — the only plant in the country producing a specific type of steel. According to the report, the day after Kelly learned that the plant would remain open — before that information became public — Victoria bought 5,000 shares of Cleveland-Cliffs stock for $23,075. The committee alleges she eventually sold the shares for a $64,476.06 profit.

Committee concerns

While the committee concluded there was not enough evidence to prove Kelly violated insider trading laws or conflict of interest rules, it found his conduct troubling. The report emphasized that both Kelly and his wife should “divest of any stock in the company before Representative Kelly takes any further official actions directly related to that company.” The committee was especially concerned by a second stock purchase Victoria made while the investigation was ongoing. “The Committee is particularly concerned with Representative Kelly’s actions during the Committee’s investigation — most notably the fact that his wife made an additional purchase of stock in the same company during the pendency of the investigation.”

Lack of cooperation

Much of the committee’s frustration stemmed from a lack of cooperation from both Rep. Kelly and his wife. The report noted that Victoria “refused to participate in a voluntary interview or to respond to written questions from the Committee, citing her prior cooperation with document requests as well as health concerns.” In the report, “the Committee did not find sufficient evidence that Representative Kelly engaged in or facilitated insider trading.”

Kelly’s response

Rep. Kelly pushed back on the committee’s findings and the lengthy timeline of the investigation. In a statement, he said the process “unnecessarily lasted for nearly five years” and that he and his loved ones “look forward to putting this distraction behind us.”

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