End Citizens United President Tiffany Muller published a new op-ed hitting Rep. Ken Calvert (CA-41) for his corrupt self-dealing and calls on Congress to pass legislation aimed at preventing lawmakers from using federal earmarks to boost the value of their properties and profiting off of their jobs.
Coachella Valley Independent: Congress Needs to Extend the Ban on Insider Trading to Real Estate
Tiffany Muller
9/25/24
Corruption and self-dealing have plagued Washington, D.C., and prevented Congress from getting things done for the American people for far too long. At End Citizens United (ECU), our goal is to pass common-sense reforms to get Big Money out of politics and put government back on the side of the American people.
We fight for key legislation that would do more to ensure elected officials cannot use the knowledge gained through their elected positions to line their own pockets—such as the TRUST Act, which would ban members of Congress and their families from trading stocks altogether.
However, even if the TRUST Act were passed, one key loophole would still exist: Members of Congress would still be allowed to make real estate transactions based upon where they direct the federal funding they secure for their districts.
In Riverside County, this issue is in the spotlight once again, as 31-year incumbent Ken Calvert is under scrutiny for consistently directing earmarks closely to his existing rental properties, thus driving up their value.
As a reminder, Calvert has a long and shady history with earmarks. In 2006, the Los Angeles Times published an investigative report, “Rep. Calvert’s Land of Plenty,” which exposed Calvert and his business partners for buying a vacant lot in Riverside, securing a nearby highway interchange and subsequent commercial development through an earmark, and then selling the lot for nearly double the value. In July, the Los Angeles Times found that Calvert again earmarked tax dollars for a project near property that he recently failed to report—as required by law—on congressional disclosure forms.
Following the most recent report, ECU filed a complaint with the Office of Congressional Ethics for Calvert’s failure to properly report several properties on his financial disclosure forms, and for his conflicts of interests involving earmarked funds to boost the values of the properties. For those who know Calvert well, this flagrant self-enrichment shouldn’t come as a surprise.
This year, ECU inducted him to the inaugural list of “Most Corrupt” politicians running for re-election, following over 30 years of prioritizing his own interests and corporate special interests donors over the needs of his constituents. His self-dealing and corruption has sparked several FBI investigations, and since taking office, he’s increased his net worth by $20 million.
If members of Congress shouldn’t be able to use inside information to trade stock, then the same logic applies to inside information about real estate: Members shouldn’t be able to game federal earmarks to drive up the value of their own property.
Today, we are calling on Congress to pass several key reforms to prevent lawmakers from repeating Calvert’s blatant abuse of power.
They must put an end to insider trading in real estate. This includes forcing members of Congress to divest from revenue-generating properties and enact clear and enforceable penalties for official actions taken to boost the property’s value. Elected officials should not be corporate landlords and abuse their power to profit off of their constituents.
Congress must also close the loopholes within the earmark system by requiring elected officials to disclose new real estate transactions they or their families have a financial interest in as soon as they are finalized—similar to how stock trades are reported—and they must stiffen penalties on those who lie about it, like Calvert.
Congress must establish an independent task force within the Office of Congressional Ethics to investigate members of Congress based on reports of potential conflicts of interest. Implementing independent investigations into members who have real estate holdings near earmarked projects will ensure stronger accountability and better use of taxpayers’ time and dime.
If Calvert is genuinely free of any wrongdoing, as his spokespeople suggest, he must prove that to his constituents. That means releasing not only his own accounting of his personal finances and investments, but also those of his business partner—his brother, of all people. Although Calvert is unlikely to divest from the properties that he boosted through the earmark system, we can prevent other corrupt figures like him from engaging in this practice in the future. Moving forward, as long as he remains in Congress, an independent overseer should be appointed to ensure that Calvert and his business partners cannot acquire property before any earmarks he ultimately decides to greenlight become known to the public.
Enough is enough. If Calvert can’t or won’t meet these basic standards of transparency and trust, he should resign. Either way, the voters of California’s 41st are lucky—because they’ll have the opportunity to fire Calvert once and for all in just over a month.
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