The U.S. House Committee on Ethics plans to continue an investigation into a complaint against U.S. Rep. Mike Kelly, R-16th.

In a preliminary report issued on the matter Thursday, the Office of Congressional Ethics (OCE) — an independent, nonpartisan watchdog — recommended that the committee further review the allegation concerning Kelly because of “substantial reason” to believe that an April 29, 2020, stock purchase by his wife was based on confidential information that Kelly learned due to his role in Congress, an allegation Kelly disputes.

“The mere fact of conducting further review of a referral, and any mandatory disclosure of such further review, does not itself indicate that any violation has occurred, or reflect any judgement on behalf of the committee,” the committee said in its Thursday release.

According to the report, Kelly's wife purchased between $15,001 and $50,000 in stock of Cleveland-Cliffs, the company that owns the AK Steel plant in Butler, on April 29, 2020, the day after Kelly learned the U.S. Department of Commerce planned to initiate a review of imports of electrical steel, the primary product of AK Steel.

“The OCE's expert ultimately concluded that 'Ms. Kelly's purchase of Cleveland-Cliffs stock on April 29, 2020, represented a sharp departure from her investment behavior, leading to the inference that this investment was due to some special event or consideration,'” the report states.

Kelly's wife sold her stock in January 2021 for a profit, according to the report. She had purchased the stock at $4.70 per share and sold it at $18.11 per share.

If the stock purchase was based on “confidential or material nonpublic information,” Kelly may have violated House rules, standards of conduct and federal law.

Tom King, a Butler attorney representing Kelly in the matter, wrote to the Ethics Committee that he “respectfully disagree(s)” with the assertions in the committee's report.

“As I told the OCE, 'There has been no indication that Rep. Kelly provided Mrs. Kelly any material non-public information learned through the performance of his official duties prior to her stock purchase or, in fact, that he had any involvement whatsoever in Mrs. Kelly's decision to purchase the stock,'” he wrote. “I am confident after a fair and objective review, you will reach the same conclusion.”