A former top official at the U.S. Department of the Interior (DOI) reportedly violated federal ethics rules by improperly holding investments in major oil companies Exxon Mobil and Chevron, according to a report from the agency’s Office of Inspector General released Tuesday.
Tommy Beaudreau, who served as the DOI’s deputy secretary under President Joe Biden until he stepped down in 2023 after facing pressure from environmental activists, reportedly failed to monitor his investments in major oil companies ExxonMobil and Chevron, leading to an inadvertent conflict of interest, the report states. The report details that Beaudreau’s financial adviser made unauthorized purchases of ExxonMobil and Chevron stock in June 2022, of which Beaudreau remained unaware until a year later.
Despite having a financial stake in these companies, Beaudreau reportedly participated in a regulatory meeting on June 14, 2023, affecting both Exxon and Chevron, the report added. The meeting addressed new safety requirements for oil and gas well operations in the Gulf of Mexico, a response to the Deepwater Horizon disaster, and Beaudreau stated to agency ethics officials that he did not propose any changes to the rule during this meeting.
At the time of purchase, the Exxon stock was valued at approximately $4,920, and the Chevron stock at about $4,880, the report stated.
“Beaudreau was prohibited from owning these investments in any amount without a waiver from the DAEO [Designated Agency Ethics Official]. Beaudreau told us that he did not authorize Portfolio Manager to make these purchases, and we found no evidence that he did so,” the report said.
In our latest report, we summarize findings that a former @Interior Deputy Secretary failed to monitor his investments or recuse himself from a matter in which he held financial interests. https://t.co/Ph7xm7QAaf
— DOI OIG (@doioig) October 1, 2024
Beaudreau discovered unauthorized stock purchases on June 11, 2023, including ExxonMobil and Chevron, in his investment account while preparing his annual public financial disclosure, the report revealed. He then instructed his portfolio manager to revert these transactions and reported the issue to the DAEO on June 13, 2023, leading to an extended disclosure filing deadline to July 13, 2023.
The third-party brokerage firm where the portfolio manager purchased the stock later sold 39 shares on June 15, 2023, including ExxonMobil and Chevron, purchased without authorization for Beaudreau’s joint investment account, the report stated. These stocks, held from June 22, 2022, to June 15, 2023, were processed as a “trade error” by the firm, effectively removing them from Beaudreau’s portfolio as of June 16, 2023.
“We concluded that Beaudreau failed to monitor purchases made by Portfolio Manager or recuse from the particular matter in which he held a financial interest as required by his Ethics Agreement and Certification of Ethics Agreement Compliance,” the Office of Inspector General said. “We concluded that Beaudreau violated 18 U.S.C. 208 when he participated in the Well Control Rule meeting on June 14, 2023.”
Beaudreau stepped down from his position as Deputy Secretary in October 2023 after facing pressure from eco-activists. Beaudreau, criticized for supporting the Willow Project in Alaska, was targeted five times in one day by members of the environmentalist group Climate Defiance during his September visit to New York City for climate-related events.
The Biden administration approved ConocoPhillips’ application to develop three drilling sites in Alaska in 2023. Initiated by the Interior Department, the $8 billion Willow project, first proposed in 2018, is expected to yield about 180,000 barrels of crude oil daily, representing approximately 1.6% of current U.S. oil production.
The U.S. Department of the Interior Office of Inspector General and Beaudreau did not immediately respond to the Daily Caller News Foundation’s request for comment.
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