Ethics committee finds Rep. Mike Kelly breached code of conduct in insider trading probe

After a thorough investigation, the House Ethics Committee determined that Representative Mike Kelly from Pennsylvania breached the congressional code of conduct. The investigation, which stretched four years, delved into stock trades executed by Kelly’s wife, Victoria Kelly. Despite finding no evidence of insider trading, the committee’s report highlighted Kelly’s failure to uphold the expected level of transparency during the inquiry. As a result, the committee recommended that both Kelly and his wife divest any remaining shares they hold in Cleveland-Cliffs, a steel company.

The probe focused on Victoria Kelly’s stock transactions involving Cleveland-Cliffs. In April 2020, she purchased stocks worth $23,075 and later sold them for a profit of $64,476.06. Notably, Representative Kelly was actively advocating for trade protections from President Donald Trump’s administration to prevent the closure of a Cleveland-Cliffs factory in his district at that time. The report outlined that Victoria Kelly’s stock purchase occurred shortly after Kelly was informed of the Department of Commerce’s investigation into imposing tariffs on the specific type of steel produced at the plant.

Federal law, specifically the Stop Trading on Congressional Knowledge Act of 2012 (STOCK Act), prohibits members of Congress and federal employees from leveraging nonpublic information acquired through their official roles for personal financial gain. The House Committee on Ethics, responsible for establishing ethical standards for representatives, spearheaded the investigation into the Kellys’ stock dealings. However, Victoria Kelly’s limited cooperation hindered the committee’s ability to definitively assess the appropriateness of her stock purchase. Despite her health issues and past assistance with document requests, her reluctance to engage fully with the inquiry left crucial questions unanswered.

The House Ethics Committee’s report underscored concerns regarding Representative Kelly’s conduct and his wife’s stock transactions. While neither scenario amounted to insider trading or flagrant violations of conflict of interest regulations, the report emphasized the perceived lack of regard for the institution’s integrity due to the appearance of impropriety. The committee highlighted Kelly’s failure to grasp the potential harm caused by the doubtful nature of the stock transactions in which his spouse was involved.

In light of these findings, the House Ethics Committee recommended that both Representative Mike Kelly and his wife Victoria Kelly take steps to divest any remaining shares they possess in Cleveland-Cliffs. This action aims to mitigate any perceptions of impropriety and ensure that the integrity of the congressional code of conduct is upheld.