A House panel tasked with investigating potential corruption charges against fellow members of Congress on Friday called on a Pennsylvania 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 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 cooperative with the probe, the panel “did not find evidence that [the lawmaker] knowingly or intentionally caused his spouse to trade based on insider information.”
“It is rare for the Committee to recommend divestment of stocks where there is a potential appearance of a conflict of interest,” committee members wrote in their report. “As Representative Kelly himself noted, however, he is an ‘insider’ when it comes to Cleveland-Cliffs, by virtue of his position as the representative for his district.”
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 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.”
Kelly is a member of the powerful Ways and Means Committee, which oversees tax policy, and sits on the GOP Steering Committee, which makes recommendations to the full Conference on House leadership assignments.
At the center of the complaint is the acquisition of Cleveland-Cliffs stock that Kelly’s wife, Victoria Kelly, made in 2020. Kelly had been lobbying the administration for actions that would help Cleveland-Cliffs prevent the closure of a Butler facility that provided jobs for Kelly’s constituents. The stock purchase occurred after Kelly’s office learned the Commerce Department was launching an investigation that could result in tariffs — but before notice of the investigation was made public.
The committee report noted that this purchase was also different from many other investment decisions made by Victoria Kelly around that same time, because she made explicit directions for this specific investment.
“Mrs. Kelly’s refusal to cooperate left the Committee with no viable explanation as to why she purchased Cleveland-Cliffs stock when she did,” the committee wrote.
After the purchase, Kelly continued to advocate for measures on Capitol Hill that would benefit Cleveland-Cliffs. The committee concluded that Kelly failed to understand the “gravity of the allegations in this case” and “found substantial evidence that Representative Kelly violated the Code of Official Conduct.”
The Ethics Committee published a second report Friday regarding Rep. Alexandria Ocasio-Cortez (D-N.Y.), whose attendance to the 2021 Met Gala caused much consternation. The panel found that despite her attempts to comply with House rules, Ocasio-Cortez’ conduct, including her then partner’s attendance at the event at no cost, was not entirely appropriate. Once she repaid the expenses, the Ethics Committee said, it would consider the matter closed.
"The Congresswoman appreciates the Committee finding that she made efforts to ensure her compliance with House Rules and sought to act consistently with her ethical requirements as a Member of the House,” said Mike Casca, her chief of staff, in a statement. “She accepts the ruling and will remedy the remaining amounts, as she’s done at each step in this process.”
The Ethics Committee also announced it would continue its probe into Rep. Sheila Cherfilus-McCormick. The Florida Democrat has faced allegations that she requested funding for a for-profit entity, in what could be a violation of House rules, along with other potential wrongdoings.
"The Committee on Ethics has not yet concluded its review of the allegations, and no decision has been made at this time," Cherfilus-McCormick said in a statement. "As outlined in the Committee’s public statement, the referral for further review does not imply that any violation has occurred. I fully respect the process and remain committed to cooperating with the Committee as it works to bring this inquiry to a close."
The panel will also continue to investigate allegations against Rep. Henry Cuellar (D-Texas), who was indicted for federal corruption in 2024. The Department of Justice alleged that he and his wife accepted bribes from an Azerbaijan state-controlled oil company and a Mexican bank.
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