Congressman Krishnamoorthi Launches Investigation Into Vice President Pence’s Chief Of Staff’s Conflicts Of Interest And The Office Of Government Ethics’ Broader Oversight Of The Trump Administration

SCHAUMBURG, IL – Earlier this week, Congressman Raja Krishnamoorthi wrote to Emory A. Rounds, Director of the U.S. Office of Government Ethics (OGE), with regard to serious questions surrounding its oversight of executive branch conflicts of interest in the Trump administration and with specific respect to Marc Short, Vice President Pence's Chief of Staff:

"I am writing today regarding an issue of significant relevance to ethical governance at the top of American government: recent revelations that Marc Short, Vice President Pence's Chief of Staff and chief aide determining the Coronavirus Task Force's agenda, owns between $506,043 and $1.64 million worth of individual stocks in companies that have been directly involved in or affected by the Task Force's work. Public service demands not only our thorough commitment to putting the needs of the country ahead of ourselves, but also to holding ourselves to the highest ethical standards in eliminating conflicts of interest and complying with the law in doing so."

The question of Mr. Short's conflicts of interest around the Coronavirus Task Force came into specific relief in light of Mr. Short's public praise for a company in which he held stock. Congressman Krishnamoorthi wrote:

"For example, on March 18th Mr. Short discussed the 3M Company on Fox Business as one of the "primary producers" of respirator masks while owning between $65,002 and $150,000 worth of 3M stock."

Mr. Short had previously applied for a certificate of divestiture, which would have provided a tax break upon divesting from his conflicted assets, but OGE refused to grant the certificate due to his refusal to divest from all his potentially conflicted assets. Notably, applying for such a certificate requires an ethics official to affirm the existence of such a conflict of interest and the refusal of OGE to grant a certificate of divesture does not remove the need to eliminate the conflict of interest, meaning that Mr. Short still had an obligation to resolve the conflict of interest caused by his stock holdings. The Vice President's office told NPR that Mr. Short was managing these conflicts of interest by recusing himself from matters related to companies whose stock he held, however, as evident by his public statements on 3M, this was not the case. Additionally, while waivers are sometimes provided for conflicts of interest, Mr. Short is not listed on the White House's website as having received one.

To resolve these questions around Mr. Short's conflict of interest, Congressman Krishnamoorthi requested records and information including:

1. What is OGE doing to address Mr. Short's apparent violations?
2. Does OGE plan to certify Mr. Short's annual financial disclosure despite these apparent violations?
3. Does OGE plan to refer this matter to the Public Integrity Section of DOJ? Why or why not?
4. Has OGE taken steps to ensure that these violations do not continue to occur in the future?
5. Has OGE obtained a list of meetings regarding the pandemic response in which Mr. Short participated with companies whose stock he held? If not, why not?
6. What justification did the Office of the Vice President or the White House offer for considering a certificate of divestiture for Mr. Short and, specifically, what was the basis for concluding that Mr. Short had a conflict of interest?
7. What guidance has OGE provided Mr. Short, the White House or the Office of the Vice President regarding the management of Mr. Short's conflicts of interest?
8. Was Mr. Short required to complete government ethics training during his recent service at the White House or during his current service at the Office of the Vice President, and did any such training cover conflicts of interest?

To address broader outstanding questions around OGE's duty to prevent conflicts of interest along similar lines, Congressman Krishnamoorthi also requested:

1. What measures does OGE take in response to individuals disclosing conflicts of interest but refusing to divest from them?
2. How does OGE evaluate the thoroughness of recusals proposed in ethics agreements or other arrangements, and how does it ensure continued compliance with those agreements or arrangements?
3. Can a recusal function as an acceptable substitute for divestment in the absence of an approved ethics agreement and, if so, what measures does OGE take to ensure compliance with the alleged recusal?
4. How many individuals in the administration have been denied certificates of divestiture for reasons other than OGE determining a conflict did not exist?
5. How many of these individuals have failed to divest under such circumstances, and have any done so without completing an ethics agreement or implementing a recusal arrangement?
6. Has the OGE undertaken any efforts to ensure individuals who have failed to divest have adhered to the terms of their ethics agreements or, in their absence, to federal ethics law?

Congressman Krishnamoorthi requested answers by Monday, July 27, 2020 anda copy of his letter is available here.