Rep. Alan Grayson (D., Fla.) has quietly changed the name of the controversial hedge funds that has put the congressman under increased scrutiny over whether he was in violation of ethics rules.
Grayson has continued to operate the Delaware-based Grayson Fund Management Company as a member of Congress and has insisted on numerous occasions that he was not violating ethics rules. However, many experts challenged this notion, as sitting members of Congress are prohibited from using their names in the titles of financial entities.
A spokesman for Grayson said the change was made to stop the argument over the hedge funds that have become a central issue in the Florida Senate race.
The Tampa Bay Times reports:
This month, the millionaire Orlando Democrat petitioned to change Grayson Fund Management Company to Sibylline Fund Management.
His spokesman confirmed the move Sunday evening. "There's nothing wrong with the investor partnership using ‘Grayson’ in their name, but at this point, it's simply easier to change the name than to argue about it," spokesman Kevin Franck said in an email.
Grayson argued that he was on firm footing (Politico in June quoted a number of people who disagreed). But it had become an issue as Grayson runs for Senate. He faced an official House complaint filed by a supporter of rival Patrick Murphy, who pointed to congressional rules barring lawmakers from lending their names to entities that provide a fiduciary role.
Additionally, Grayson has also filed to change the name of his Cayman Island-based Grayson Fund Management Company, LLC to Sibylline Fund Management Company, LLC.