House Ethics Committee Reveals Investigation of Sam Graves

The U.S. House's Committee on Standards of Official Conduct revealed today that it has been investigating potential ethics violations by Rep. Sam Graves. Roll Call:

Although the committee did not detail what allegations it is investigating with regard to Graves, the Missouri lawmaker issued a statement Wednesday referring to allegations about testimony before the Small Business Committee.

In March, Roll Call reported that the Congressman invited his friend and neighbor Brooks Hurst to testify before a Congressional hearing on renewable fuels, without mentioning that his wife and Hurst are investors together in renewable fuels plants in Missouri...

At that hearing, Graves introduced Hurst as a farmer from northwest Missouri and added that Hurst’s family “is very active in biodiesel and ethanol production.”

Hurst added, “I’m also a member and investor in a small ethanol plant in the town of Craig.”

The only ethanol plant in Craig, Mo., is the Golden Triangle Energy Cooperative.

Graves’ financial disclosure forms indicate that his wife’s investment in Golden Triangle produced $15,001 to $50,000 in income in 2006 and $5,000 to $15,000 in 2007 and 2008. That investment was originally listed on Graves’ disclosure forms as being a joint asset that he shared with his wife.

Hurst told Roll Call in 2007 that in 2005 he also recruited “the Graves family” to become original investors with him in a biodiesel plant in Mexico, Mo. In 2007, that investment earned Lesley Graves $1,000 to $2,500 in income, but only $200 to $1000 in 2008, according to Graves’ disclosure forms.

According to the committee’s statement, dated Sept. 15, the ethics committee received a recommendation from the OCE to investigate Graves.

Click here for the committee's statement on Graves.

The DCCC issued a statement about the committee hearing in March: 

Graves: Too Busy Lining His Own Pockets to Help the People of Missouri
Graves Repeats His Admitted Mistake from the Past in His Continued Effort to Make Congress Work for Him

Yesterday, Roll Call newspaper reported that Congressman Sam Graves continues to use his work in Washington to line his own pockets while refusing to help people back home who are struggling during these difficult economic times.  Just like in 2004, Congressman Graves once again used his position on the Committee for Small Business to invite long time friend Brooks Hurst, who is also a business partner of Graves' wife, to testify at a hearing last week on the federal regulation of biodiesel and ethanol production - a matter that could generate great profit for both families.  In the mean time while the Congressman has been plotting his way towards personal riches, he has repeatedly refused to support much needed legislation that will put Missourians back to work, keep families in their homes and businesses open, and provide the greatest ever tax relief to middle class families.

"It's shameful that Congressman Graves is using his office in Washington for personal gain, while so many people back home are worried about losing their jobs and homes during this economic crisis," said Gabby Adler, the Midwestern Regional Press Secretary for the Democratic Congressional Campaign Committee.  "If all of this sounds familiar, it's because it is - Congressman Graves committed the same cover-up attempt in 2004, and when his deceptions were revealed he admitted his wrongdoing.  When will Congressman Graves come clean this time and apologize to the people of Missouri for not only for hiding the truth but for conspiring to turn a profit off of his Congressional seat?"

When Congressman Sam Graves invited Charlie Hurst and his son Brooks Hurst to testify in front of the House Committee on Small Business in 2004, he admitted to the Kansas City Star it was wrong to do so without disclosing his connection to the Hurst family and their joint business ventures.  It seems Congressman Graves did not learn his lesson, when last week Congressman Graves again invited Brooks Hurst to testify in front of the House Committee on Small Business, and once again he failed to publicly disclose their personal friendship and the business partnership between Lesley Graves and Brooks Hurst.

In his written testimony to the Small Business Committee last week, Brooks Hurst urged members of Congress to extend an existing tax credit for blending fuel with biodiesel and supported implementation of a national renewable-fuels standard.  The reforms requested by Brooks would not only generate greater profit for both Hurst and Lesley Graves in their joint business venture, but it would guarantee profitability well into the future.

Did Congressman Sam Graves not learn his lesson the first time he lied about his ties to Brooks Hurst, or is he simply trying to hide his efforts to use federal regulations to line his own pockets while voting against efforts to provide real relief to Missouri families during these tough economic times?

BACKGROUND:

Graves Hand-Picked Business Associates For Renewable Energy Hearing: In May 2004, when Graves was chairman of the Small Business Subcommittee on Rural Enterprises, Agriculture and Technology, the committee held a hearing on renewable fuels.  Not one, but two of the panel's witnesses represented companies in which Graves already had or would have a financial interest.  One of the witnesses at the hearing was the treasurer of Golden Triangle Energy, Charlie Hurst.  Another was Brooks Hurst, a family friend of Graves who lobbied for biodiesel tax incentives and who would later establish a biodiesel company in which Graves' wife would invest (see below).  [Roll Call, 11/7/07; St Joseph News Press, 5/7/04]

Graves Admitted Failure to Disclose Connection to Hurst Family and Golden Triangle a Mistake: In 2007, Graves admitted that his failure to disclose his connection to Golden Triangle Energy in 2004 was a mistake.  He invited his friends Charlie Hurst and his son Brooks Hurst, members of the Golden Triangle Energy ethanol cooperative, to come to Washington as witnesses to promote federal subsidies for the renewable fuels industry.  Both Charlie Hurst and his son Brooks Hurst were identified as members of Golden Triangle Energy, but at the time Graves did not point out his connection to the cooperative.  His wife Lesley had invested $13,000 in the cooperative and in 2006 she invested $6,826 more.  Graves said his failure to disclose the connection was a mistake. 

"Looking back on it, I probably should have," Graves said.  [Columbia Tribune, 12/07/07]

Graves Invites Wife's Business Partner Brooks Hurst to Testify before Congress... Again:  In 2009, Graves, the ranking member on the Small Business Committee, invited Brooks Hurst to testify before a Congressional hearing on renewable fuels.  It was the second time Brooks Hurst testified and the second time Graves declined to mention that his wife Lesley Graves and Hurst are investors together in a renewable fuels plant in Missouri.  Graves introduced Hurst as a farmer from northwest Missouri and added that Hurst's family "is very active in biodiesel and ethanol production."  Hurst himself added that, "I'm also a member and investor in a small ethanol plant in the town of Craig."  Graves and Hurst beyond their financial ties also jointly own four airplanes.  [Roll Call, 3/09/09]