Washington
Granholm says she failed to reveal stock holdings; GOP calls for investigation
WASHINGTON (AP) — The top Republican on the Senate Energy panel is calling for an investigation of Energy Secretary Jennifer Granholm, after she told the committee she mistakenly provided false information about her family’s stock holdings in testimony earlier this year.
Wyoming Sen. John Barrasso on Wednesday asked the Energy Department’s inspector general to look into what Barrasso called “multiple instances of questionable ethical conduct since the start of her tenure’’ in 2021.
Barrasso’s request came after Granholm sent a letter to the committee revealing she owned financial stocks as recently as May, contradicting testimony she gave to the panel in April.
Granholm also said her husband, Daniel Mulhern, owned previously undisclosed stock in Ford Motor Co., a key player in the Biden administration’s efforts to improve fuel efficiency for cars and trucks and boost sales of electric vehicles.
Granholm said at an April 20 budget hearing that she did not own any individual stocks, saying she was only invested in mutual funds. That comment was a mistake, Granholm said. “I should have said that I did not own any conflicting stocks,” she wrote in a June 9 letter to Democratic Sen. Joe Manchin, chairman of the energy panel.
Granholm said she had stocks in six companies that were deemed “non-conflicting assets” by agency ethics officials but has since sold them. She declined to identify the companies or say how much the stocks were worth, but said that information would be publicly revealed on a financial disclosure report due this month.
Granholm also said she recently became aware that her husband owned stock in Ford, which has worked closely with the Biden administration. Granholm is a former Michigan governor and prominent supporter of the U.S. auto industry. The Ford stock was sold on May 15 for just under $2,500, she said.
“As I was not previously aware of the asset, I did not report my spouse’s financial interest on my two prior Public Financial Disclosure Reports, nor was it included in the other paperwork associated with my nomination,’’ Granholm wrote. If it had been reported, the value would have been listed as $1,001 to $15,000, she said.
“As a public servant, I take very seriously the commitment to hold myself to the highest ethical standards, and I regret the accidental omission of my spouse’s interest in Ford,” Granholm wrote.
A spokesman for Energy Department Inspector General Teri Donaldson said Wednesday that the watchdog office had received Barrasso’s letter and was reviewing it.
A DOE spokesman said Granholm is committed to ethical conduct and transparency.
“Secretary Granholm timely divested of all conflicting assets that were known at the time of her confirmation, and subsequently even divested of assets she wasn’t legally required to sell.”
Granholm also drew criticism from Republicans two years ago, after she revealed ownership interest in an electric bus maker that President Joe Biden touted as part of push for EVs.
Granholm sold her holdings in California-based Proterra Inc. in May 2021, clearing a net gain of $1.6 million. The sale fulfilled her obligations under an ethics agreement three months before an August 2021 deadline, the Energy Department said at the time.
Republicans had criticized Granholm’s holdings in the company, noting the administration’s focus on electric vehicles as part of its push to slow climate change. Criticism grew louder after Biden made an online visit to a Proterra manufacturing site in South Carolina to highlight U.S. EV makers.
New York
Ex-congressman seeks no prison time for insider trading conviction
NEW YORK (AP) — A former Indiana congressman should spend no time in prison after his insider trading conviction, his lawyers told a judge Wednesday.
Steve Buyer, 64, of Noblesville, Indiana, was convicted by a jury in Manhattan federal court in March of four securities fraud charges after a two-week trial for stock trades he made while working as a consultant and lobbyist after he finished serving in Congress from 1993 to 2011.
He was convicted in connection with insider trading involving the $26.5 billion merger of T-Mobile and Sprint, announced in April 2018, and stock purchases he made at a later time in the management consulting company Navigant when his client Guidehouse was set to acquire it in a deal publicly disclosed weeks later.
Federal sentencing guidelines call for him to serve a prison sentence of about three years, though judges frequently depart downward from the recommendations.
His lawyers wrote in a submission ahead of a July 11 sentencing that the Republican should face only home confinement and community service.
The lawyer and Persian Gulf War veteran once chaired the House Veterans’ Affairs committee and served as a House prosecutor at former President Bill Clinton’s 1998 impeachment trial.
Buyer’s attorneys told the judge who will sentence their client that Buyer has suffered substantially as a result of the prosecution and conviction.
The case has “irreparably damaged his reputation, tarnished his achievements and lifetime of service, and continue to bring shame and humiliation to him and his family,” the lawyers said.
They said he lost all of his consulting clients after he was indicted and his two businesses “crumbled,” erasing average yearly gross income of about $2.2 million that existed from 2018 to 2021. Now, they produce no income, the lawyers said.
As a result of the conviction, he will lose his Virginia and Indiana bar licenses, and he can never again consult for and advise Fortune 500 companies or any others where he could have access to insider information, they said.
“The cost of litigation has also been substantial, causing Mr. Buyer and his wife to sell most of their assets, including their home, condo, and two cars,” the lawyers said. His wife will have to go back to work at age 65, they added.
In addition, four financial institutions have closed or frozen his bank accounts, including his investment accounts, and two credit card companies have closed his accounts, the lawyers said.
The attorneys said a sentence that does not include prison time would not be unusual because more than a third of individuals convicted of insider trading charges who previously had a clean record faced no prison time. And over 70 percent of the sentences were less than two years in length, they said.
At trial, prosecutors said his clients were motivated to share lucrative secrets with him because they wanted his help as a consultant.
Defense lawyers contended that he was a stock market buff who did research that led to legal profitable trades. Buyer testified on his own behalf.
Buyer made over $320,000 illegally for himself, relatives and a woman with whom he had an affair, authorities said.
