The outgoing representative, Madison Cotorne (RN.C.), is being investigated by the House Ethics Committee on allegations of financial fraud and misconduct.
Why it matters: The investigation is the culmination of weeks of damaging scandals and media reports that have led to the loss of the right-wing fire brand since being re-elected as a major Republican contender.
News Movement: The Ethics Committee said in a press release Monday that its members – five Democrats and five Republicans – voted unanimously to launch the investigation.
- Its purpose is to determine whether Coutorne “improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest” and “involved in an inappropriate relationship” with an employee.
Background: Super PAC, focused on opposing Cawthorn, filed a complaint with the Congressional Ethics Office, alleging that Cawthorn provided housing, travel and loans to staff they believed were incorrectly disclosed.
- According to the complaint, employee Stephen L. Smith accompanied Kotorn on his honeymoon in Dubai.
- Smith is Cawthorn’s cousin, Cawthorn spokesman Luke Ball told Insider, calling the complaint “ridiculous.”
The complaint was also withdrawn from a Washington Examiner report that Cawthorn was involved in a cryptocurrency pumping and dumping scheme.
- Cawthorn reportedly commented that the cryptocurrency, Let’s Go Brandon Coin, would “go to the moon” – or jump in price – in a photo of him and the hedge financier behind the coin, a day before the announcement raised its value.
On the other hand, “We welcome the opportunity to prove that Congressman Kotorn did not commit wrongdoing and that he was falsely accused by partisan opponents of political gain,” Kotorne Chief of Staff Blake Harp told Axios.
- “This request is a formality. “Our office is not in the least prevented from completing the work that the West North Carolina Patriots sent us to Washington,” Harp said.
Go deeper: A separate report from the committee says its members have voted to drop an investigation into allegations of speeding and driving offenses against Cawthorne.
- Kotorn reportedly told the commission that he had paid a fine to authorize one of the driving charges and “intends to pay all fines related to the remaining charges.”
- “The committee believes that the local authorities’ consideration of this issue is sufficient in view of the facts of the matter,” the report said.
Editor’s note: This story has been updated to include a statement from the Chief of Staff of the Rep. Cawthorn.
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