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Listen, forget the homosexual and pedophile aspects of this thing for just a second.
This is sexual harassment. If this were any workplace other than the Congress of the United States and a prominent employee was found to be flirting or even just joking inappropriately with his subordinates, and if that employee's boss was even suspected of covering it up, heads would roll all up and down the corporate ladder, and the company would be subject to massive legal liability.
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