Rep. Alan Grayson (D-FL) still manages three hedge funds that use his name in the title, which violates House ethics rules.
Politico reports that Rep. Grayson is the namesake of Grayson Fund L.P. of Delaware, along with Grayson Master Fund Ltd. and Grayson Fund Ltd. which are both operated out of the Cayman Islands. (RELATED: Democratic Congressman Goes On Profanity-Laced Tirade Against Reporter)
The Cayman Islands are known for providing a lucrative tax haven for financial entities.
The House of Representatives does not allow a sitting member to “permit his name to be used” in affiliation with businesses, such as a law firm or a financial institution, according to Politico.
Grayson’s legal team claims that the funds are exempt from this provision. They claim that the structure of the funds permit Grayson to keep details about the businesses including investor information, confidential and that he is not obligated to list the funds on financial disclosure statements.
He simply lists the 3 hedge funds as assets on his financial disclosure forms but does not claim income from them ,according to Politico.
Grayson started the funds after losing reelection in 2011. He ran and won the newly drawn Florida 9th district, which includes Orlando, in 2012.
The congressman also states that his hedge funds are exempt because he has no “fiduciary duty” over the 3 funds that bear his name or the investors in them.
Ken Scudder, a spokesman for Grayson, told Politico, “The reason why the funds’ offerings are ‘exempt’ is that all of the fund’s investors are qualified investors. ‘Qualified investors,’ by definition, are sophisticated investors to which no fiduciary duty is owed.”
Grayson has positioned himself as a populist who is staunchly opposed to Wall Street and corporate greed. He also criticized Mitt Romney for his business career. (RELATED: Grayson’s Wife, Kids Now On Government Assistance)
The congressman is considered a top pick along with Rep. Patrick Murphy (D-FL) for Marco Rubio’s senate seat in 2016.
Grayson has also received media attention for trying to have his marriage annulled, stating that his wife is a “gold digger” and that she was still legally married to someone else when the two wed in 1990 according to the Palm Beach Post. (RELATED: Rep. Alan Grayson’s Lolita Problem Heats Up)