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HEBHENGARLNG. TK CHARAN ited States Rouse of Representatives MAXIE WATERS, CA RANKING MeNIRER Committee on Financial Services 2129 Rayburn House fice Building Washingan, BE 20315 July 28, 2017 ‘The Honorable Adam Miles ‘Acting Special Counsel US. Office of Special Counsel 1730 M Street, NW, Suite 218 ‘Washington, DC 20036 Dear Mr. Miles: ‘As you know, the Hatch Act states that a federal employee may not “run for the nomination or as a candidate for election to a partisan political office”! Ina June 17, 2009 advisory opinion, the U.S. Office of Special Counsel (OSC) advised that the Hatch Act's prohibition against candidacy “extends not merely to the formal announcement of candidacy but also to the preliminaries leading to such announcement and to canvassing or soliciting support or doing or permitting to be done any act in furtherance of candidacy OSC also advised: "Because the Hatch Act has been interpreted to prohibit preliminary activities regarding candidacy, any action that can reasonably be construed as evidence ‘that an individual is seeking support for or undertaking an initial ‘campaign’ to secure a ‘nomination or election to office would be viewed as candidacy for purposes of the Hatch ‘Act The OSC further advised that "giving consent to or acquiescing In such activities by ‘others on the employee's behalf” would similarly violate the law On July 19, 2017, several news reports were published regarding speculation that Richard Cordray, the Director of the Bureau of Consumer Financial Protection, will eave the agency to run for pattisan political office (the 2018 Ohio Gubernatorial election} "SUSC. § 732593) See ato, US. Office of Special Counsel, Advisory Opinion, “Candidacy ina Partizan ection (May 20,1998 (TA coveted employee may not bea eanidate for public fice in a partisan election, ie. an election in which any ealdate represen, or example the Democrat Republican pa", avaliable a ges Resoutestha-20 pd. US. Office of Special Couns, Advisory Opinion, “When Does Canada Ben fr Purposes ofthe atch Ac. ‘OSC Pile No, AD-O9-x0% (lune 17,2008) (citing 86 Cong Re. 2938-2940 (Septem 1939), vallbe wt Td. Se also US, Offi of Special Counsel, Advisory Opiion, “When Does Canddaey Begin. (Max. 19,1999) (Beesise the ste hs been rerpreted to probit pelininaty actives regarding candidacy, any aon which {a reasonably be conse evidence ta he Individual I seking suppor fr or undertaking an nial “campaign to scure nomination or elction to office would be viewed as candidny foe purposs athe Act”), salable ipsoxe gow Resources Tha 2, a 5 See. Karen Kale,“ Si He Won’ Ben Net Year's Governor’ Rac Because Hs Prefered Candae Wil In? Sachse News Bare ly 19,2017 avaible tp satenews rlpaeusce sayshe-wontbe- ex-eas- govt se heme poled onda ery Dele,“ ica Corby i ing ‘Ohio sone, Supe Co pti ld evel co hl 12017, alee 1 ‘These news reports quoted William “Bill” O'Neill a Justice of the Supreme Court of Ohio, and the only Democrat holding state-wide elected oflice, who said ina recorded interview: "Iwas contacted by a mutual friend with Richard Cordray last week and they wanted to be very clear on whether or not my original commitment was still valid, And that was that if Richard Cordray isin the race for governor I am ‘out of the race for governor: Justice O'Neill Is also reported to have said that this mutual friend “openly stated” that Director Cordray is going to enter the 2018 Democratic gubernatorial primary, and that “[tJhe person I was talking to last week was saying that [Cordray] Is basically trying to get as many projects done in Washington as he can before he leaves..but they left me with the clear impression that he is leaving.” Itappears that as an employee of a federal agency, Director Cordray Is subject to the Hatch Act. As reported, itis unclear whether Director Cordray consented to or acquiesced in the contact between the unidentified "mutual friend” and Justice O'Neill However, if this, ‘occurred, it appears that Director Cordray indirectly contacted a potential primary rival to secure the rival's commitment not to run for office, which may be reasonably construed as evidence that he undertook a campaign to secure a nomination for partisan political office in contravention of the law. [As the Acting Special Counsel, you have authority to review potential Hatch Act violations. Accordingly, | request that you review whether Director Cordray engaged in prohibited political activities and act promptly on the basis of your findings. Sipcengly, Chairman ccc: ‘The Honorable Maxine Waters, Ranking Member Fnt-iclewland conipliaindsx (201 7/07hichar corny je rennin for Ml: Daniel Seuss and Torraine Woslert, "Ohi jadge: Richard Cordray plans tor for Oo governor eliio uly 19,2017, ata tity pla can'stor/201 7171 9rihar-erdray-chie governer-2018. 240729 2

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