Watchdog Calls for Ethics Investigation into Democrat Earl Blumenauer’s Stock Transactions

A non-partisan ethics watchdog organization demanded an investigation into Democrat Rep. Earl Blumenauer’s (OR) stock transactions on Monday to determine whether he violated conflict of interest rules that lawmakers have to follow.

The Foundation for Accountability and Civic Trust (FACT) filed a complaint with the Office of Congressional Ethics (OCE) asking for an “immediately investigate” to determine if his wife’s up to $15,000 purchase of stock shares of the biopharmaceutical company Amgen was “directly related to his oversight role on the Health Subcommittee,” which would ultimately be in violation of conflict of interest rules.

The ethics complaint explained that documents show the congressman’s wife purchased up to $15,000 of stock shares of Amgen on September 26. However, shortly after, on October 4, the Department of Health and Human Services announced that it would be “spending $290 million for supplies of Amgen’s drug Nplate — a move that has resulted in Amgen surging by over 24% as of [November 10, 2022].”

Additionally, the complaint noted that Blumenauer serves on the House Ways and Means Committee and its Health subcommittee, which “handles legislation and oversight related to programs paying for health care, health delivery systems, or health research . . . [and] oversees the Department of Health and Human Services administration.”

According to FACT, the House Ethics rules require congressional lawmakers to “conduct themselves at all times in a manner that reflects creditably on the House” and to adhere to the spirit as well as the letter of the ethics rules. FACT added:

Specific rules require Members to refrain from taking official action when the Member has either an apparent or actual conflict of interest, and Members are prohibited from using their official position and information obtained from it for personal financial gain. 

A conflict of interest exists when a Member’s private affairs appear to, or actually do, conflict with their ability to officially act on behalf of the public interest. “The ultimate concern ‘is risk of impairment of impartial judgment, a risk which arises whenever there is a temptation to serve personal interests.’” Because the integrity of government action is at risk, the ethics rules require Members to refrain from official action where there is even an inference of a conflict, as well as where there is an actual conflict. Thus, a conflict arises when a Member’s personal interest creates doubt the Member can act impartially and in the public interest. “At the other extreme, a conflict of interest becomes corruption when an official uses his position of influence to enhance his personal financial interests.” [Emphasis added.]

In the case, the complaint explained that there are two different types of conflict of interest: “(1) voting on legislation and (2) other official action. With respect to voting, a Member should not vote on legislation in which he or she has ‘a direct personal or pecuniary interest.'”

FACT also explained that when assessing whether a lawmaker has a conflict of interest, the lawmaker’s spouse’s employment and investments are fully considered as if he or she were the lawmaker himself or herself. “The law does not distinguish between whether stock shares were purchased in the Member’s name or the Member’s spouse’s name,” but the complaint clarified, “in each instance, the stocks are treated as the Members.”

FACT’s Executive Director, Kendra Arnold, slammed the congresswoman in a statement:

Given the information that they have access to, under the ethics rules, Members of Congress who sit on committees must meet a higher standard. Every time the public sees a transaction like this it causes them to question the motivation of our elected officials – something the ethics rules are specifically designed to prevent. The facts of this case require that the OCE investigate to determine precisely what occurred here and to prevent these types of transactions in the future.

Additionally, this is not the first time the congressman’s stock purchases raised concerns. Earlier this year, the New York Times reported that the congressman’s wife “bought or sold stocks or bonds in several health care companies, including CVS Health and UnitedHealth Group,” Blumenauer was still on the Ways and Means Committee and the Health subconscious.

Jacob Bliss is a reporter for Breitbart News. Write to him at jbliss@breitbart.com or follow him on Twitter @JacobMBliss.