Watt denies all charges of sexual harassment, defends his refusal to help investigate

Congress

The housing regulator suggests that the accuser's cassettes may have been "falsified".

Housing regulator, Mel Watt, strongly defended allegations of sexual harassment on Thursday, suggesting that her accuser had manipulated her encounters in a "systematic" effort to take legal action by distorting her "efforts to advise and supervise it ".

Watt, the director of the Federal Housing Finance Agency, told his former colleagues of the House Financial Services Committee that he was a "big supporter of the #Meoooo movement … but that's not the case. it can not replace judicial proceedings ".

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Watt spoke a few hours after the agency's employee, Simone Grimes, told the committee that he made sexual advances several times during conversations about salary concerns, leaving her "dangerous and vulnerable".

The panel members treated Grimes with deference and congratulated his decision to come forward. Committee Chair Jeb Hensarling (R-Texas) and ranking member Maxine Waters (D-Calif.) Spoke singularly, testifying to the extraordinary cultural moment that gave rise to two simultaneous hearings on Thursday.

"I am a father of two teenagers. … It's horrible for me to think that someday, when my daughter enters the job market, that she could be harassed, she could be discriminated against, "Hensarling said. "But I'm also the father of a teenage son … [and] it is intolerable for me to think that a mere charge of impropriety would deprive him of one way or another of due process.

Given the high-risk hearing on a sexual assault charge against Supreme Court candidate Brett Kavanaugh, which took place at the same time on the other side of the capitol, Hensarling said: "

In his testimony, Watt referred to the possibility that the 15 tapes that Grimes told the committee support that his claims were manipulated.

"There are two ongoing cases that will resolve and resolve all the factual and legal issues related to his claims," ​​he said. These include "if someone falsified the tapes and transcripts of what was said and, if so, who did it".

Grimes' lawyer challenged the suggestion by saying that no one had tampered with the cassettes and no one had mentioned this possibility before today.

When representative Dave Trott (R-Mich.) Cited one of Watt's transcripts – in which Watt told Grimes that he wanted to "explore" their "attraction" and that there was had four types of attraction: emotional, spiritual, sexual. or "friendship" – Watt has not disputed its accuracy.

"I absolutely think that if you're going to coach someone, you have to know what he thinks," Watt said.

"About the attraction?" Answered Trott, noting that he had "a lot of mentees" not to mention attraction.

"Well, you have not framed them and understood – they're doing bad vibrations and you do not clearly understand what the expectations are, I think you have problems," Watt said.

Rep. Barry Loudermilk (R-Ga.) Called this answer "probably the most ridiculous thing I've ever heard in Congress".

Legislators have repeatedly emphasized Watt's decision not to participate in an investigation of Grimes' complaints by US postal services. Watt argued that his status as a presidential candidate exempts him from anti-harassment rules of agencies for employees.

"The law states that policies do not apply to me; I do not know how many times I can tell you, Watt, whose term ends in January, said at one point. He told the committee he did not say he was "above the law," prompting Hensarling to interrupt "Director Watt, it sounds as if you were".

"You have stated publicly that legal privilege is not recognized by others," Hensarling said, before warning Watt to cooperate with a parallel investigation by the inspector general of FHFA.

"I do not want to make threats, Mr. Watt, especially to a former colleague – but know that this committee will be watching this very closely," said Hensarling, who will also be retiring in January. "Even if you and I are preparing to leave the office at the same time, I will not hesitate for a moment to use my power of summons if we have ample evidence that you are not cooperating fully in this investigation. "

Watt signed the anti-harassment policy that he stated did not apply to him. He conceded to Hensarling that nothing prevented him from voluntarily joining the policy or participating in the USPS investigation.

Grimes, a special advisor to the FHFA, filed a formal complaint earlier this year, alleging that Watt had repeatedly turned her conversations to sexual matters when she tried to discuss a pay raise. .

Watt "has more than once hinted that his progress was related to my ability to receive promotions and salary increases," Grimes said Thursday before the committee, noting that the frequency of his advances and advice from his friends by recording his meetings with him.

POLITICO obtained partial transcripts from some Grimes bands in July, including a conversation in 2016 during which Watt guided the discussion about his feelings for Grimes. In another meeting, Watt asked about a tattoo on his ankle, saying, "If I kissed him, would that lead to more?

Waters, who pushed Grimes to testify, admitted to having been friends with Watt – a former North Carolina Democratic member who was a member of the Financial Services Panel – for years, socializing with him and his wife and giving gifts to his grandchildren. .

But she was careful to show respect for Grimes and the opening to hear her allegations, "no matter I visited her house and I dined with him."

"What would you like this committee to do to help you get justice in your case?" Asked Mr. Waters in Grimes, noting that the House panel "did not duplicate Kavanaugh's allegations.

Waters also reprimanded Watt for suggesting that a congressional committee hearing was not the right place to broadcast Grimes' allegations. On Tuesday, the panel invited Grimes to testify at a routine hearing on Watt's agency after his lawyer asked him to introduce himself, prompting Watt to complain that he had only two days to attend. to prepare.

"You asked why we allowed him to come in and use this forum to present his case when there is actually an ongoing trial," Waters said. "And while this has been the regular agenda … let me just share with you it's a different day, and a different time."

Grimes' complaint triggered three investigations: one under the Equal Employment Laws, conducted by the Federal Deposit Insurance Corp. on behalf of the FHFA; an administrative inquiry conducted as part of the agency's anti-harassment policy, conducted by the US Postal Service; and an independent investigation by the Office of the Inspector General of the FHFA.

Grimes Thursday lashed out at the Inspector General's office for publicly naming her when she sued for compelling her to subpoena for audio tapes and documents in August.

The move was to "criticize her publicly," said Grimes, "and also serves to prevent other women from coming forward. … I think it was a shameful tactic on the part of the Inspector General to name me publicly. "

Inspector General Laura Wertheimer, who testified after Grimes and before Watt, acknowledged in a back-and-forth flow with Waters that she had revealed to Watt that Grimes had filed a lawsuit for a case of 39 equality of employment due to racial disparity at the agency.

Wertheimer also stated that the Inspector General's office appointed Grimes to court only after conversations with the US District Attorney's Office for the East Virginia District, indicating that the office does not would not be able to

Grimes, meanwhile, said the Inspector General's investigation – the one Watt said he was going to participate in – would eventually be used as a fig leaf to give Watt a "clean report". Wertheimer challenges the accusation that she is too close to Watt.

Grimes also criticized the wider culture at FHFA.

"I may be the only one sitting here, but I'm not the only one to have seen this pay gap" between men and women, she said.

The agency addressed the issue in detail for the first time Thursday morning.

The FHFA "takes allegations of discrimination and sexual harassment very seriously," FHFA spokeswoman Megan Moore said in an e-mail before the start of the hearing.

"Since these allegations were raised, the Agency and the Director have had separate legal counsel on this issue," Moore added. "The Director did not make any decisions on behalf of the Agency with respect to these legal reviews. In addition, the Director did not participate in any employment decision concerning the complainant as these allegations were made. "

Zachary Warmbrodt contributed to this report.