The House Ethics Committee has formally requested that Pennsylvania Republican Rep. Mike Kelly divest his family’s holdings in Cleveland-Cliffs, a major steel manufacturer based in Ohio, citing concerns over the appearance of conflicts of interest and the potential for misuse of his position. The committee’s report indicated that while they did not find direct evidence of insider trading, the circumstances around Kelly’s wife, Victoria Kelly’s, stock purchase in 2020 raised significant ethical concerns.
The complaint focused on the timing of Victoria Kelly’s purchase of Cleveland-Cliffs stock. The stock was acquired after Kelly’s office learned that the Commerce Department was launching an investigation that could result in tariffs against the company, though the details of the investigation were not yet made public. The committee expressed particular concern that Kelly’s wife made explicit directions for this specific investment, which is different from her other investment decisions at the time. The committee’s report noted that Kelly’s failure to disclose the purchase and his continued advocacy for the company’s interests after the purchase raised questions about his adherence to the Code of Official Conduct.
In a statement, Kelly addressed the committee’s findings, calling the probe a ‘distraction’ and asserting that it has lasted nearly five years. He argued the investigation has done little to address the broader impact of the Biden administration’s energy policies on the future of the Cleveland-Cliffs Butler Works plant, which employs 1,400 workers in his district. Kelly stated that he has fought for these workers and that their future remains uncertain due to federal decisions. He expressed hope that the investigation would conclude soon, allowing him to refocus on his legislative responsibilities.
The Ethics Committee also announced updates on its investigations into several other lawmakers. For Rep. Alexandria Ocasio-Cortez, the panel found her attendance at the 2021 Met Gala and her partner’s attendance at the event without cost to be inappropriate. However, the committee stated they would consider the matter closed once Ocasio-Cortez repaid the expenses, as she had done at each stage of the process. The panel also noted that it would continue its probe into Rep. Sheila Cherfilus-McCormick, who faces allegations of requesting funding for a for-profit entity, as well as ongoing investigations into Rep. Henry Cuellar, who was indicted in 2024 for corruption linked to Azerbaijani and Mexican entities.
These developments underscore the increasing scrutiny of lawmakers’ ethical conduct as the House Ethics Committee continues to address transparency and accountability. The STOCK Act, enacted in 2012, remains a crucial legal framework for addressing potential insider trading by government officials, even as cases like Kelly’s highlight the challenges of balancing public service with personal financial interests.