U.S. Rep. Mike Kelly, R-16th, was found to be in violation of the House of Representatives’ code of official conduct after an investigation into his wife’s investment in Cleveland-Cliffs, according to a report released by the House Ethics Committee.

The Friday, July 25, report indicated there was “substantial evidence” to show Kelly violated the code of conduct when Victoria Kelly profited off stock trades for the steel manufacturer following an April 2020 purchase, but it did not find evidence showing Kelly was party to insider trading nor had a conflict of interest pertaining to his wife’s actions.

“Members nonetheless have a duty to protect the integrity of the institution, which requires them to be sensitive to even the appearance of impropriety,” the 28-page report said.

The committee determined Mike Kelly should ensure the two “divest of all shares of Cleveland-Cliffs before taking any further official action relating to the company.”

According to the report, the committee rarely recommends divestment, but recognizes a “unique and heightened ethical concern” due to Mike Kelly’s knowledge of confidential information relating to a company while his wife was trading the company’s stock.

Mike Kelly responded to the report in a Friday statement.

“This investigation has unnecessarily lasted for nearly five years,” Kelly said. “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. My family and I look forward to putting this distraction behind us.”

According to the report, the committee first received a report from the Office of Congressional Conduct on July 23, 2021, after finding “substantial reason to believe Mrs. Kelly’s stock purchase was made based on confidential information that Representative Kelly learned from his official work.”

Committee staff then reviewed over 25,000 pages of documents and interviewed five people, including Mike Kelly. The committee said it did not receive full cooperation from Victoria Kelly and was “unable to determine whether her stock purchase was improper.”

The committee said in 2020, Mike Kelly was working to implement a tariff that would protect grain-oriented electrical steel, which is exclusively produced at Cleveland-Cliffs’ Butler plant, after the CEO indicated the possibility of a closure.

He advocated for these protections throughout early 2020 by signing three letters addressed to President Donald Trump expressing concerns about the plant.

On April 28, Secretary of Commerce Wilbur Ross told Cliffs’ CEO that he would announce a self-initiated investigation into whether foreign imports are a national security threat, which was relayed to Mike Kelly’s office.

The next day, April 29, Victoria Kelly purchased 5,000 shares of Cleveland-Cliffs stock for $23,075.

Ross confirmed his investigation directly with the congressman’s office on May 1 and it was announced publicly on May 4.

According to the Ethics Committee report, Victoria Kelly’s portfolio had an estimated worth of approximately $7 million as of 2020.

The report said during this time period, Mike Kelly was working from home while recovering from COVID-19. He told the committee that he did not believe he discussed specific actions being taken with her, and the committee was unable to determine if she overheard any conversations.

Kelly said in an interview with the committee that his wife told him that she purchased the stock due to its low price, and in a statement provided to the Butler Eagle in September 2020 called it a “small investment to show her support for the workers and management of this 100-year-old bedrock of their hometown.”

She sold the shares on January 2021 for a profit of $64,476.06, the report said.

The report found Victoria Kelly’s Cleveland-Cliffs purchases to be an “outlier” in her investment portfolio, as it is normally traded at PNC’s discretion and consisted primarily of funds, bonds and a trust. However, the Cleveland-Cliffs purchase was instructed directly by her and represented the first purchase of individual stock on the portfolio in a year.

Mike Kelly testified that he is not involved and rarely discusses his wife’s portfolio, which was confirmed by her investment adviser.

In March 2024, during the committee’s investigation, Kelly’s wife purchased between $50,000 and $100,000 in shares of Cleveland-Cliffs. Victoria Kelly declined to respond while Mike Kelly did not respond to written questions.

Regardless of motivations, the committee found the financial benefit risked creating the appearance of self-dealing.

“Mrs. Kelly’s subsequent purchase of Cleveland-Cliffs stock despite the ongoing investigation, and Representative Kelly’s failure to timely disclose that purchase and answer questions relating to it, are yet more examples of his failure to recognize the gravity of the allegations in this case and indicate a lack of respect for the committee’s role and processes,” the report said.