A complaint has been filed with the Office of Congressional Ethics against Representative Mike Garcia by the watchdog group Citizens for Responsibility and Ethics in Washington (CREW), accusing Garcia of violating disclosure laws and the STOCK Act. The complaint alleges that Garcia failed to properly report multiple transactions leading up to the 2020 election, including the sale of Boeing stock shortly before a committee he sat on released a critical report on the company’s involvement in deadly crashes related to its 737 MAX airliner.
This filing from CREW marks the second complaint against Garcia within a week, triggered by investigative reporting from The Daily Beast. The first complaint was lodged by the Democratic transparency advocacy organization End Citizens United, contending that Garcia violated ethics rules, the STOCK Act, and potentially engaged in insider trading with the Boeing sale.
Jordan Libowitz, the communications director for CREW, emphasized that Garcia’s actions go against the intent of existing laws. Libowitz stated, “Rep. Garcia sold Boeing stock that he did not disclose he owned, and then he chose not to disclose that sale until after he barely won his election. This is why Americans are losing confidence in their members of Congress, and it’s exactly what our laws are meant to prevent. Congress needs to ban stock ownership, or this is going to keep happening.”
Both complaints urge the OCE to investigate various potential violations outlined in The Daily Beast’s report. The investigative report revealed several violations in Garcia’s 2020 financial disclosures, including the tardy reporting of the Boeing sale, which exceeded the 45-day deadline by over two months. Garcia disclosed the transaction only after securing victory in an election decided by a narrow margin of 333 votes.
The CREW complaint describes the Boeing delay as a “clear violation” that “deprived the voting public of crucial information when it may have needed it the most.” It underscores that Garcia has yet to fully disclose the financial gains from his Boeing investments, which were not reported on his annual disclosures. The complaint contends that Garcia should have disclosed these transactions before Election Day, raising concerns about transparency and accountability in Congress.
The complaint filed by Citizens for Responsibility and Ethics in Washington (CREW) asserts that Representative Mike Garcia, by neglecting to disclose his trades, especially the sale of Boeing stock while under investigation, denied his constituents the opportunity to address potential conflicts of interest through the electoral process. The complaint urges the Office of Congressional Ethics (OCE) to investigate the circumstances surrounding Garcia’s trades and disclosure failures, emphasizing the need for transparency and accountability.
In addition to these concerns, the complaint from the Democratic transparency advocacy organization End Citizens United (ECU) takes a further step, alleging that Garcia might have engaged in insider trading with the Boeing sale. The complaint suggests that Garcia, a former Raytheon executive, may have acted on inside information obtained from the Transportation Committee’s ongoing investigation into Boeing’s safety protocols. While the CREW complaint doesn’t explicitly make this allegation, it notes that Garcia’s committee was preparing a report highly critical of Boeing and cited nonpublic information obtained from the company.
Garcia’s office has not responded to The Daily Beast’s request for comment. However, in response to the ECU complaint, Garcia’s spokesperson, Lance Trover Anderson, stated that Garcia was not aware of the content of the Boeing report until its release and had no involvement in meetings or hearings on the subject. Anderson also claimed that Garcia promptly rectified the accidental late filing, though the nature of this rectification remains unclear.
The delayed disclosure, which occurred after Garcia’s narrow election victory, kept the transaction concealed from voters in the crucial weeks before the election, potentially influencing the outcome of a closely contested race decided by fewer than 400 votes. The CREW complaint emphasizes that adherence to federal law and ethics rules, especially regarding public disclosures, is paramount when constituents are poised to exercise their voting rights. Despite Garcia’s previous familiarity with disclosure requirements, as evidenced by his earlier filings, the failure to disclose these trades raises questions about the congressman’s commitment to transparency in the democratic process.
