This frame grab from video provided by Fox News shows White House adviser Kellyanne during her interview with Fox News Fox and Friends, Thursday, Feb. 9, 2017, in the briefing room of the White House in Washington. Conway defended Ivanka Trump's fashion company, telling Fox News that Trump is a "successful businesswoman" and people should give the company their business. (Fox News via AP)
less
This frame grab from video provided by Fox News shows White House adviser Kellyanne during her interview with Fox News Fox and Friends, Thursday, Feb. 9, 2017, in the briefing room of the White House in
... more
Photo: Associated Press
FILE - This Dec. 1, 2016 file photo shows Kellyanne Conway prior to a forum at Harvard University's Kennedy School of Government in Cambridge, Mass. Media outlets are more aggressively fact-checking political statements. A separate fact check on Conway's false claim of a Bowling Green "massacre" on Thursday was the most-read story on the APNews.com web site Friday. (AP Photo/Charles Krupa, File)
less
FILE - This Dec. 1, 2016 file photo shows Kellyanne Conway prior to a forum at Harvard University's Kennedy School of Government in Cambridge, Mass. Media outlets are more aggressively fact-checking political
... more
Photo: Charles Krupa, Associated Press
(FILES) This January 27, 2017 file photo shows Kellyanne Conway senior aide to US president Donald Trump speaking at the March for Life rally in Washington,DC. The top adviser to President Donald Trump found herself embroiled in a new "alternative facts" controversy Friday over her unfounded claim that two radicalized Iraqis had masterminded a US massacre that never took place. Kellyanne Conway, who managed Trump's presidential campaign and is now a White House counselor, made the remark February 2, 2017 in an interview with MSNBC while defending Trump's ban on refugees as similar to steps taken by former president Barack Obama. / AFP PHOTO / Tasos KatopodisTASOS KATOPODIS/AFP/Getty Images
less
(FILES) This January 27, 2017 file photo shows Kellyanne Conway senior aide to US president Donald Trump speaking at the March for Life rally in Washington,DC. The top adviser to President Donald Trump found
... more
Photo: TASOS KATOPODIS, AFP/Getty Images
Kellyanne Conway and Steve Bannon after a worship service on Inauguration Day at St. John's Episcopal Church in Washington, D.C.
Kellyanne Conway and Steve Bannon after a worship service on Inauguration Day at St. John's Episcopal Church in Washington, D.C.
Photo: Jabin Botsford/The Washington Post
WASHINGTON, DC - JANUARY 20: Trump advisers Kellyanne Conway (L) and Hope Hicks on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump becomes the 45th president of the United States. (Photo by Alex Wong/Getty Images)
less
WASHINGTON, DC - JANUARY 20: Trump advisers Kellyanne Conway (L) and Hope Hicks on the West Front of the U.S. Capitol on January 20, 2017 in Washington, DC. In today's inauguration ceremony Donald J. Trump
... more
Photo: Alex Wong, Getty Images
WASHINGTON, DC - JANUARY 22: Counselor to President, Kellyanne Conway, prepares to appear on the Sunday morning show Meet The Press, from the north lawn at the White House, January 22, 2017 in Washington, DC. Conway discussed President Trump's recent visit to the CIA and White House Press Secretary Sean Spicer's first statement. (Photo by Mark Wilson/Getty Images)
less
WASHINGTON, DC - JANUARY 22: Counselor to President, Kellyanne Conway, prepares to appear on the Sunday morning show Meet The Press, from the north lawn at the White House, January 22, 2017 in Washington, DC.
... more
Photo: Mark Wilson, Getty Images
US President Donald Trump speaks with Counselor to the President Kellyanne Conway after the swearing in of the White House senior staff at the White House on January 22, 2017, in Washington, DC. / AFP PHOTO / MANDEL NGANMANDEL NGAN/AFP/Getty Images
less
US President Donald Trump speaks with Counselor to the President Kellyanne Conway after the swearing in of the White House senior staff at the White House on January 22, 2017, in Washington, DC. / AFP PHOTO /
... more
Photo: MANDEL NGAN, AFP/Getty Images
Kellyanne Conway, appointed as Counselor to the President by US President-elect Donald Trump, leaves St. John's Episcopal Church on January 20, 2017, before Trump's inauguration. / AFP PHOTO / Nicholas KammNICHOLAS KAMM/AFP/Getty Images
less
Kellyanne Conway, appointed as Counselor to the President by US President-elect Donald Trump, leaves St. John's Episcopal Church on January 20, 2017, before Trump's inauguration. / AFP PHOTO / Nicholas
... more
Photo: NICHOLAS KAMM, AFP/Getty Images
NEW YORK, NY - JANUARY 11: Kellyanne Conway, advisor to President-elect Donald Trump, watches as he speaks at a news conference at Trump Tower on January 11, 2017 in New York City. This is Trump's first official news conference since the November elections. (Photo by Spencer Platt/Getty Images)
less
NEW YORK, NY - JANUARY 11: Kellyanne Conway, advisor to President-elect Donald Trump, watches as he speaks at a news conference at Trump Tower on January 11, 2017 in New York City. This is Trump's first
... more
Photo: Spencer Platt, Getty Images
Ethics Agency Says `Reason to Believe' Conway Broke Rules (1)
(Bloomberg) -- The director of the federal ethics agency said there was “strong reason to believe” that White House aide Kellyanne Conway violated regulations when she urged people on national television to buy Ivanka Trump’s products.
Conway’s remarks in a Feb. 9 appearance on Fox News “would establish a clear violation of the prohibition against misuse of position,” Office of Government Ethics Director Walter Shaub, Jr., wrote to a deputy White House counsel in a letter dated Feb. 13. “Therefore I recommend that the White House investigate Ms. Conway’s actions and consider taking disciplinary action against her.” Shaub shared that letter with members of Congress and released it to the public on Tuesday.
Conway’s unusual product endorsement last week drew quick bipartisan condemnation and criticism from legal specialists, who said it appeared to violate a federal rule barring officials from using their positions to promote private business interests. Shortly after her comments, White House spokesman Sean Spicer told reporters that she had been “counseled,” but he declined to elaborate.
Later the same day, Conway praised President Donald Trump for supporting her, saying that all women should have bosses who treat them “the way the president of the United States treated me today.”
Agency’s Letter
In his letter, Shaub said OGE had contacted the White House on Feb. 9 but had “not yet received notification of any disciplinary or other corrective action against Ms. Conway.” He asked the White House to respond by Feb. 28. The White House press office didn’t immediately respond to a request for comment.
On the same day that Conway made her statements, Representative Jason Chaffetz, chairman of the House Oversight and Government Reform Committee, asked OGE in a letter to recommend “disciplinary action, if warranted.” The top Democrat on the committee, Representative Elijah Cummings of Maryland, also signed the letter.
In response, Shaub, who had previously criticized President Trump’s decision not to divest from his businesses, laid out his agency’s powers with regard to the alleged violation: If an agency, including the White House, declines to take up a recommendation from OGE, federal ethics officials can launch their own investigation and recommend specific punishment, even though it wouldn’t be binding.
On Feb. 9, following decisions by some retailers including Nordstrom Inc. to stop selling Ivanka Trump’s products, Conway said on Fox News she would do a “free commercial” for the merchandise.
“Go buy it today everybody; you can find it online,” she said.
(Updates with lawmakers’ request in fifth paragraph.)
To contact the reporter on this story: Ben Brody in Washington at btenerellabr@bloomberg.net.
To contact the editors responsible for this story: Joshua Gallu at jgallu@bloomberg.net, John Voskuhl
©2017 Bloomberg L.P.