Carl Hulse , The New York Times; Ethics Panel Rebukes Congressman for Wife’s Stock Trade in Firm He Helped
"The House Ethics Committee on Friday rebuked a Republican congressman from Pennsylvania and urged him and his wife to sell their holdings in a steel company in his district after a four-year investigation into a stock trade found that he had violated the House’s official code of conduct.
In its report, the committee cited Representative Mike Kelly, a member of the Ways and Means Committee, for a “lack of candor” in its inquiry into 2020 trades by his wife, Victoria, involving a local steel company that was seeking government intervention to prevent layoffs or the closure of its plant in Butler, Pa., in Mr. Kelly’s district.
Mr. Kelly was actively lobbying the Trump administration for trade protections for the plant, newly purchased by the company Cleveland-Cliffs, and learned that the Commerce Department was going to intervene in favor of the firm. The next day — five days before the Commerce action was made public — his wife purchased 5,000 shares of Cleveland-Cliffs stock. She later sold the stock at a nearly $65,000 profit, a roughly 285-percent gain.
Members of Congress are prohibited from using confidential information for financial benefit and must disclose transactions by them or close family members valued at more than $1,000, but efforts to tighten those rules or bar lawmakers from trading stocks altogether have so far been unsuccessful. That has created an environment rife with potential conflicts of interest, in which many lawmakers who are active in the stock market have unique insight into or influence over companies whose shares they are buying and selling."
