Fossella, 43, was recently sentenced to five days in jail for drunken driving in suburban Virginia back in May. The arrest led to revelations he'd fathered a child from an extramarital affair.
The Staten Island Republican chose not to seek re-election, and a Democrat won his seat.
The House ethics committee said in a statement Friday it had finished its investigation without recommending action against Fossella. The committee put the matter on hold pending the outcome of the criminal case.
Fossella appealed his conviction, which under Virginia law means he's entitled to a jury trial. He will leave Congress Jan. 3.