Congressman Mike Kelly Caught Red-Handed in Insider Trading Scandal

Insider Trading Allegations Against Congressman Mike Kelly

• 🏛️ A 23-page report from the House Ethics Committee concluded there was substantial evidence that eight-term Congressman Mike Kelly profited by trading stock on confidential information.
• 📈 The report, a result of a five-year investigation, detailed violations of insider trading laws, including text messages, emails, and trade confirmations.
• 🇺🇸 The American people deserve better than politicians coming to Washington to get rich, and such actions erode trust in the system.

The Cleveland Cliffs Case

• 🏭 Congressman Kelly, representing Pennsylvania's 16th district, intervened to help Cleveland Cliffs, a steel company facing financial trouble during COVID-19.
• 📞 Kelly made calls and sent letters to the president and government officials to advocate for tariffs on imported steel, aiming to protect jobs and the company.
• 📉 The company's stock was struggling, down 75% after COVID, and the proposed tariffs were intended to shield it from foreign competition.

Suspicious Stock Purchase

• 📅 On April 28, 2020, the Commerce Department notified Cleveland Cliffs' CEO about the upcoming public announcement of a self-initiated Section 232 investigation, which would lead to tariffs.
• 💸 The very next day, April 29, 2020, Mike Kelly's wife purchased thousands of shares of Cleveland Cliffs stock at $4 per share, a day after the company was assured of government protection.
• 📈 This purchase was an outlier in her investment portfolio, as it was the first individual stock bought in nearly a year and was not on her usual investment platform, requiring direct instruction.

The Outcome and Public Reaction

• 💰 The stock subsequently surged 279% in nine months, tripling the investment.
• ⚖️ Despite overwhelming evidence, the House Ethics Committee's recommendation was that Kelly should divest his shares before any further action, with no fine or further penalty mentioned.
• 🧐 This outcome highlights a perceived two-tier justice system, where a private citizen trading this way would face SEC scrutiny, while a congressman faces minimal repercussions.

Opportunities for Legal and Ethical Trading

• 📊 Ross Givens, a stock market veteran and authority on insider trading, offers free live training events to teach how to legally and ethically follow insider trades.
• 🔗 Attendees can learn to track public disclosures of stock trades made by politicians and corporate executives to potentially profit.
• 🚀 The training is described as a "cheat code" for investors, offering a unique advantage by revealing opportunities often missed by the general public.