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From the staff of the Tampa Bay Times

Bloomberg reports Alan Grayson's family "profited from 'pariah state' gold mine"

19

February

U.S. Senate candidate and current U.S. Rep. Alan Grayson, D-Orlando, has made headlines this past week because of mounting controversy and criticism over a once-offshore hedge fund he has managed.

Bloomberg Politics is out today with a new report, this time about investments Grayson's children made. The news organization reports Grayson's children previously invested in -- and profited from -- a company that operates a mine in Eritrea, an African country that is accused of using slave labor.

From Bloomberg Politics:

Representative Alan Grayson holds an unusual position as a member of the U.S. Congress, an active investor and manager of a hedge fund.

Now that the wealthy Florida Democrat is running for the Senate seat being vacated by Republican presidential candidate Marco Rubio, his investments are becoming a more prominent liability.

Last year, Grayson, who was first elected to Congress in 2008, made a passionate speech denouncing trade with dictatorships or countries that employ forced labor.

But weeks earlier, his family cashed in a long-held investment in a mining company that derives its revenue almost entirely from Eritrea, an east African country labeled "a pariah state" by Human Rights Watch in part for its system of forced labor in service of a government that hasn’t held an election since 1991. Grayson said he wasn’t aware of the 2013 report criticizing the company.

The Democratic leader in the Senate, Harry Reid of Nevada, has already called on Grayson to drop out of the race, charging that he used his role as a member of Congress to promote his own hedge fund and saying he appeared to have "no moral compass." 

Grayson, 57, is running against fellow Florida Democratic Representative Patrick Murphy, with a primary set for Aug. 30. On Sunday, Murphy also said Grayson should close his hedge fund and even resign if allegations made in the New York Times and the Tampa Bay Times were proved true that his roles as a member of Congress and hedge fund manager had become intertwined. Grayson has denied using his office for personal gain.

Asked last week about the investment in Nevsun Resources Ltd., Grayson says he wasn’t aware of concerns expressed by human rights groups about Nevsun’s mining operations in Eritrea before the stock was sold last year.

Full story here.

UPDATE: 9:55 a.m.

Murphy's campaign released a statement this morning calling on Grayson to donate to charity the profits his family made off its investments in Nevsun.

"Hedge fund manager Alan Grayson profited off of a company accused of using slave labor on a massive scale, and then sponsored legislation condemning those same practices. That kind of shameless hypocrisy is exactly what Floridians hate about Washington," Murphy campaign manager Josh Wolf said. "If Congressman Grayson still knows how to do the right thing, he should donate to charity every penny of his profit from the suffering of innocent people." 

Bloomberg Politics reported that Grayson said he "didn’t know" and "couldn’t have known" about this specific investment.

"If I had known, then I would have divested," Grayson told Bloomberg Politics. "I did actually divest, but I didn’t know when I divested, nor would I have any reason to know that, given the fact that literally thousands of different investments are involved, given the fact that nobody brought it to my attention until I’m in the midst of a competitive campaign."

[Last modified: Friday, February 19, 2016 9:56am]

    

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