An investigation into U.S. Rep. Alan Grayson’s use of a hedge fund merits “further review,” the Office of Congressional Ethics said in a report released Tuesday by the U.S. House Ethics Committee.
But the committee has made no final decision regarding the complaint that the Orlando Democrat, who is running for U.S. Senate, used his position as a sitting member of Congress to solicit investments into the fund, which would violate federal law and House rules.
Grayson, a favorite of progressive groups, quickly denied any wrongdoing during a conference call with reporters in which he questioned the ethics of the committee’s staff and labeled the allegations first filed last summer as “politically motivated,” “a witch-hunt,” and “frivolous.”
“I think that nothing will happen between now and the election, and the most likely course of events is that after the election the complaint will be dismissed,” Grayson told reporters.
The campaign of U.S. Rep. Patrick Murphy, a Democrat from Jupiter who has received White House support in his run for the Senate, simply called the report “damning.”
The Office of Congressional Ethics, an independent body, found in its report there is “substantial reason to believe” several allegations, including Grayson permitted the use of his name by four entities linked to his hedge fund and Grayson Consulting, Inc. of Virginia; he omitted required information from his annual financial disclosure statements; and a Grayson congressional staffer used official resources while working for Grayson’s hedge fund.
The office also found reason to believe Grayson conducted multiple press interviews focused primarily on his Senate campaign from his U.S. House office.
Grayson said the investigation fails to identify instances of actual ethics violations or violations of law. He added the hedge fund was used only by himself, his children and two long-time friends.
Grayson added he “welcomed” the decision by the committee for not establishing an investigative subcommittee to look into the charges.
“The Ethics Committee decision against establishing an investigative subcommittee is highly significant, because in every single case where the Ethics Committee has issued a formal sanction (expulsion, censure or reprimand) against a member of Congress based on an OCE referral, it has done so only after establishing an investigative subcommittee,” Grayson said in his statement.
Grayson went on in the statement, and during the conference call, to declare the “fishing expedition” further illustrates the Washington political establishment’s support for Murphy.
Grayson also repeated a belief from his response to investigators in January — which was released with the findings on Tuesday — by calling for the Committee on Ethics to dismiss the report.
The chairwoman of the Democratic Progressive Caucus of Florida — a left-leaning group that supports Grayson — expressed hope that the Ethics Committee decision “marks the end of silly season in this race.”
“Progressive Democrats are the heart and soul of the Florida Democratic Party and if Patrick Murphy wants to win our support, he’ll need to stop slinging mud and start explaining why he worked with Republicans to cut Social Security benefits, deregulate Wall Street, force President Obama’s hand on the disastrous Keystone Pipeline and support the Benghazi witch hunt committee,” Chair Susan Smith said in a statement.
Murphy planned a media call on Wednesday to address the committee’s findings.