52 members of Congress have violated a law designed to stop insider trading and prevent conflicts-of-interest
Marianne Ayala/Insider
- Insider and other media have identified numerous US lawmakers not complying with the federal STOCK Act.
- Their excuses range from oversights, to clerical errors, to inattentive accountants.
- Ethics watchdogs — and even some in Congress — want to ban lawmakers from trading individual stocks.
- See more stories on Insider's business page.
Insider and several other news organizations have this year identified 52 members of Congress who've failed to properly report their financial trades as mandated by the Stop Trading on Congressional Knowledge Act of 2012, also known as the STOCK Act.
Congress passed the law in 2012 to combat insider trading and conflicts of interest among their own members and force lawmakers to be more transparent about their personal financial dealings. A key provision of the law mandates that lawmakers publicly — and quickly — disclose any stock trade made by themselves, a spouse, or a dependent child.
But many members of Congress have not fully complied with the law. They offer excuses including ignorance of the law, clerical errors, and mistakes by an accountant. Insider has chronicled this widespread nature of this phenomenon in a new project, "Conflicted Congress."
While lawmakers who violate the STOCK Act face a fine, the penalty is usually small — $200 is the standard amount — or waived by House or Senate ethics officials. Ethics watchdogs and even some members of Congress have called for stricter penalties or even a ban on federal lawmakers from trading individual stocks, although neither has come to pass.
Here are the lawmakers who have this year violated the STOCK Act — to one extent or another — during 2021:
Anna Moneymaker/The New York Times via AP, Pool
Feinstein was months late disclosing a five-figure investment her husband made into a private, youth-focused polling company.
Chip Somodevilla/Getty Images
Tuberville was weeks or months late in disclosing nearly 130 separate stock trades from January to May.
Leigh Vogel/Pool via AP
Marshall was up to 17 months late disclosing stock trades for one of his dependent children.
Tom Williams/CQ Roll Call
Paul was 16 months late in disclosing that his wife bought stock in a biopharmaceutical company that manufactures an antiviral COVID-19 treatment, the Washington Post reported.
REUTERS/Mario Anzuoni
Kelly, a retired astronaut, failed to disclose on time his exercising of a stock option on an investment in a company that's developing a supersonic passenger aircraft, Fox Business reported.
Tom Williams/Roll Call
Lummis was several days late reporting a purchase in August of up to $100,000 in bitcoin, CNBC reported.
Tom Williams/CQ-Roll Call via Getty Images
Malinowski failed to disclose dozens of stock trades made during 2020 and early 2021, doing so only after questions from Insider.
The independent Office of Congressional Ethics, in part citing Insider's reporting, found "substantial reason to believe" that Malinowski violated federal rules or laws designed to promote transparency and defend against conflicts. It voted 5-1 to refer its findings to the Democrat-led House Committee on Ethics, which confirmed on October 21 that it will continue reviewing the matter.
Tom Williams/CQ-Roll Call, Inc via Getty Images
Fallon was months late disclosing dozens of stock trades during early- and mid-2021 that together are worth as much as $17.53 million.
Tom Williams/CQ-Roll Call, Inc via Getty Images
Harshbarger failed to properly disclose more than 700 stock trades that together are worth as much as $10.9 million.
Michael Brochstein/Getty Images
Lee failed to properly disclose more than 200 stock trades between early-2020 and mid-2021. Together, the trades are worth as much as $3.3 million.
MassLive
Clark, one of the highest-ranking Democrats in the House, was several weeks late in disclosing 19 of her husband's stock transactions. Together, the trades are worth as much as $285,000.
Caroline Brehman/CQ-Roll Call via Getty Images
Moore in early- to mid-2021 did not properly disclose dozens of stock and stock-option trades together worth as much as $1.1 million. He was late again disclosing trades made in August.
Andrew Harnik/AP Photo
Sherrill was months late disclosing two sales of vested stock her husband earned as part of his employment. The trades were worth up to $350,000 and Sherrill paid a $400 late fee.
Bill Clark/CQ Roll Call via Getty Images
Brooks, who is running for US Senate, failed to properly disclose a sale of Pfizer stock worth up to $50,000.
Facebook/Crenshaw for Congress
Crenshaw was months late disclosing several stock trades he made in the early days of the COVID-19 pandemic, the Daily Beast reported.
Bill Clark/CQ-Roll Call, Inc via Getty Images
Hern did not disclose nearly two-dozen stock trades in a timely manner, in violation of the STOCK Act. Taken together, the trades are worth as much as $2.7 million.
Joe Raedle/Getty Images
Wasserman Schultz was months late reporting four stock trades made either for herself or her child.
Chip Somodevilla/Getty Images
Guest was more than eight months late disclosing trades in the stock of two oil companies held by a family trust benefitting his wife.
Tom Williams/CQ-Roll Call
Maloney was months late in disclosing he sold eight stocks he inherited in mid-2020 when his mother died.
Ting Shen-Pool/Getty Images
Mast was late disclosing that he had purchased up to $100,000 in stock in an aerospace company. The president of the company had just testified before a congressional subcommittee on which Mast sits.
Bill Clark/CQ Roll Call
Trahan was months late disclosing the sale of stock shares in a software company.
Drew Angerer/Getty Images
Rutherford failed to properly disclose five individual stock transactions he made in late 2020.
Michael Brochstein/SOPA Images/LightRocket via Getty Images
Trone was months late reporting several stocks and structured notes that together are worth well into the hundreds of thousands of dollars.
Bill Clark/CQ Roll Call
Meuser was about one year late disclosing hundreds of thousands of dollars worth of stock purchases his wife and children made during March 2020, LegiStorm reported.
Bill Clark/CQ-Roll Call via Getty Images
Castor was late disclosing the purchase of tens of thousands of dollars worth of stock shares throughout 2021.
Bill Clark/CQ Roll Call
Pascrell was overdue reporting stock trades he made in December 2019 in General Electric and in August 2019 in pharmaceutical company Johnson & Johnson.
Tom Williams/CQ-Roll Call via Getty Images
Pfluger was several months late disclosing numerous stock purchases or sales made in January or March either by himself or by his wife.
Tom Williams/CQ Roll Call
Higgins was about 11 months late disclosing three stock trades he made in late 2020.
Chip Somodevilla/Getty Images
Bustos was months late in disclosing that she had sold up to $150,000 worth of stocks in March.
Al Behrman/AP
Chabot was months late disclosing a stock share exchange he held in early 2021.
Bill Clark/CQ-Roll Call via Getty Images
Spartz was two weeks late disclosing a purchase of up to $50,000 worth of stock in a commercial real-estate firm.
Bill Clark/CQ-Roll Call via Getty Images
Allen, a four-term Republican who represents a large southeastern region of Georgia, appears to have improperly disclosed the purchases and sales of several stocks during 2019 and 2020.
Tom Williams/CQ-Roll Call, Inc via Getty Images
Schrier was more than two months late disclosing that her husband purchased up to $1 million in Apple Inc. stock, Sludge and Forbes reported. Schrier's office told Insider that the congresswoman was initially unaware of the transaction.
Caroline Brehman/CQ-Roll Call, Inc via Getty Images
Kelly was more than seven weeks late reporting a stock purchase made by his wife.
Bill Clark/CQ-Roll Call via Getty Images
Jacobs was months late filing various transactions made throughout early- to mid-2021, Forbes reported.
Tom Williams/CQ-Roll Call, Inc via Getty Images
Scott was months late in disclosing a pair of stock sales from December 2020, Forbes reported. NPR also reported several other late transactions, as first identified by the nonpartisan Campaign Legal Center.
Sean Rayford/Getty Images
Scott, a Republican from Georgia, was a week late reporting a handful of transactions conducted by his spouse.
AP
Sessions was a month late in reporting a purchase of stock in Amazon.com.
Samuel Corum/Getty Images
Perlmutter ran a few days late in filing disclosures for as much as $30,000 in stock trades his wife made in June.
Caroline Brehman/CQ-Roll Call, Inc via Getty Images
Suozzi failed to file required reports on about 300 financial transactions, NPR reported, citing research from the Campaign Legal Center.
John Minchillo/AP
Davidson didn't properly disclose the sale of stock worth up to $100,000, reported NPR, citing Campaign Legal Center research.
House Television via AP
Gooden failed to file mandatory periodic transaction reports for a dozen stock transactions, per the STOCK Act, reported NPR, citing Campaign Legal Center research. Gooden's office disputed to the Dallas Morning News that the lawmaker did anything wrong.
Tom Williams/CQ Roll Call
Fleischmann, a Republican from Tennessee, was late in disclosing a pair of stock transactions together worth up to $30,000.
Joshua Lott/Getty Images
During 2019 and 2020, Axne didn't file required periodic transaction reports for more than three-dozen trades, reported NPR, citing research by the Campaign Legal Center.
Tom Williams/CQ Roll Call
San Nicolas did not properly disclose two trades — one in 2019 and another in 2020, reported NPR, citing Campaign Legal Center research.
Jacquelyn Martin/Pool/Getty Images
Welch, an outspoken environmentalist, was late disclosing the sale of his wife's ExxonMobil stock. In December, Welch's office told Insider that the congressman and his wife would both stop trading individual stocks.
NICHOLAS KAMM/AFP via Getty Images
Banks was a week late reporting a handful of stock transactions.
US House of Representatives
Garcia was late disclosing several stock trades he made in mid-2020, as first reported by the American Independent.
Carolyn Kaster/AP
Wittman was a few days late in disclosing four of his stock transactions that included pharmaceutical company Johnson & Johnson.
US House of Representatives
Lowenthal was late disclosing his wife's purchase of a corporate bond in cloud computing and technology company VMWare, worth between $15,001 and $50,000, Forbes reported. "We have no comment," Lowenthal spokesman Keith Higginbotham told Insider on November 18.
US House of Representatives
Hagedorn was more than three months late disclosing the sale of stock in a company that makes colon cancer-screening products.
Associated Press/Carolyn Kaster
Williams did not properly report three stock transactions his wife made in 2019, reported NPR, citing Campaign Legal Center research.
from Business Insider https://ift.tt/3zEs0y3
via IFTTT
Comments
Post a Comment