52 members of Congress have violated a law designed to stop insider trading and prevent conflicts-of-interest

52 members of Congress have violated a law designed to stop insider trading and prevent conflicts-of-interest

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: 

Sen. Dianne Feinstein, a Democrat from CaliforniaSen. Dianne Feinstein, a Democrat of California.

Feinstein was months late disclosing a five-figure investment her husband made into a private, youth-focused polling company.

Sen. Tommy Tuberville, a Republican from AlabamaSen. Tommy Tuberville, a Republican from Alabama.

Tuberville was weeks or months late in disclosing nearly 130 separate stock trades from January to May.

Sen. Roger Marshall, a Republican from KansasSen. Roger Marshall, a Republican from Kansas.

Marshall was up to 17 months late disclosing stock trades for one of his dependent children.

Sen. Rand Paul, a Republican from KentuckySen. Rand Paul, a Republican from Kentucky.

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.

Sen. Mark Kelly, a Democrat from ArizonaSen. Mark Kelly, a Democrat from Arizona.

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

Sen. Cynthia Lummis, a Republican from WyomingUS Senator from Wyoming, Cynthia Lummis.

Lummis was several days late reporting a purchase in August of up to $100,000 in bitcoin, CNBC reported.

Rep. Tom Malinowski, a Democrat from New JerseyRep. Tom Malinowski, a Democrat from New Jersey.

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.

Rep. Pat Fallon, a Republican from TexasRep. Pat Fallon, a Republican from Texas.

Fallon was months late disclosing dozens of stock trades during early- and mid-2021 that together are worth as much as $17.53 million.

Rep. Diana Harshbarger, a Republican from TennesseeRep. Diana Harshbarger, a Republican from Tennessee.

Harshbarger failed to properly disclose more than 700 stock trades that together are worth as much as $10.9 million.

Rep. Susie Lee, a Democrat of NevadaRep. Susie Lee, a Democrat from Nevada.

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.

Rep. Katherine Clark, a Democrat from MassachusettsRep. Katherine Clark, a Democrat from Massachusetts.

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.

Rep. Blake Moore, a Republican from TexasRep. Blake Moore, a Republican from Utah.

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.

Rep. Mikie Sherrill, a Democrat from New JerseyRep. Mikie Sherrill, a Democrat from New Jersey.

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. 

Rep. Mo Brooks, a Republican from AlabamaRep. Mo Brooks, a Republican from Alabama.

Brooks, who is running for US Senate, failed to properly disclose a sale of Pfizer stock worth up to $50,000.

Rep. Dan Crenshaw, a Republican from TexasRep. Dan Crenshaw, a Republican from Texas.

Crenshaw was months late disclosing several stock trades he made in the early days of the COVID-19 pandemic, the Daily Beast reported.

Rep. Kevin Hern, a Republican from OklahomaRep. Kevin Hern, a Republican from Oklahoma.

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.

Rep. Debbie Wasserman Schultz, a Democrat from FloridaRep. Debbie Wasserman Schultz, a Democrat from Florida.

Wasserman Schultz was months late reporting four stock trades made either for herself or her child.

Rep. Michael Guest, a Republican from MississippiRep. Michael Guest, a Republican from Mississippi.

Guest was more than eight months late disclosing trades in the stock of two oil companies held by a family trust benefitting his wife.

Rep. Sean Patrick Maloney, a Democrat from New YorkRep. Sean Patrick Maloney, a Democrat from New York.

Maloney was months late in disclosing he sold eight stocks he inherited in mid-2020 when his mother died.

Rep. Brian Mast, a Republican from FloridaRep. Brian Mast, a Republican from Florida.

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.

Rep. Lori Trahan, a Democrat from MassachusettsRep. Lori Trahan, a Democrat from Massachusetts.

Trahan was months late disclosing the sale of stock shares in a software company.

Rep. John Rutherford, a Republican from FloridaRep. John Rutherford, a Republican from Florida.

Rutherford failed to properly disclose five individual stock transactions he made in late 2020.

Rep. David Trone, a Democrat of MarylandRep. David Trone, a Democrat of Maryland.

Trone was months late reporting several stocks and structured notes that together are worth well into the hundreds of thousands of dollars.

Rep. Dan Meuser, a Republican from PennsylvaniaRep. Dan Meuser, a Republican from Pennsylvania.

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.

Rep. Kathy Castor, a Democrat of FloridaRep. Kathy Castor, a Democrat from Florida.

Castor was late disclosing the purchase of tens of thousands of dollars worth of stock shares throughout 2021.

Rep. Bill Pascrell, a Democrat of New JerseyRep. Bill Pascrell, a Democrat of Maryland, paid a late fee after he was tardy disclosing stock trades.

Pascrell was overdue reporting stock trades he made in December 2019 in General Electric and in August 2019 in pharmaceutical company Johnson & Johnson.

Rep. August Pfluger, a Republican from TexasRep. August Pfluger, a Republican from Texas.

Pfluger was several months late disclosing numerous stock purchases or sales made in January or March either by himself or by his wife.

Rep. Brian Higgins, a Democrat from New YorkRep. Brian Higgins.

Higgins was about 11 months late disclosing three stock trades he made in late 2020.

Rep. Cheri Bustos, a Democrat from IllinoisRep. Cheri Bustos, a Democrat from Illinois.

Bustos was months late in disclosing that she had sold up to $150,000 worth of stocks in March.

Rep. Steve Chabot, a Republican from OhioSteve Chabot, a Republican from Ohio.

Chabot was months late disclosing a stock share exchange he held in early 2021.

Rep. Victoria Spartz, a Republican from IndianaRep. Victoria Spartz, a Republican from Indiana.

Spartz was two weeks late disclosing a purchase of up to $50,000 worth of stock in a commercial real-estate firm.

Rep. Rick Allen, a Republican from GeorgiaRep. Rick Allen, a Republican from Georgia.

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.

Rep. Kim Schrier, a Democrat from WashingtonRep. Kim Schrier, a Democrat from Washington.

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.

Rep. Mike Kelly, a Republican from PennsylvaniaRep. Mike Kelly, a Republican from Pennsylvania.

Kelly was more than seven weeks late reporting a stock purchase made by his wife.

Rep. Chris Jacobs, a Republican from New YorkRep. Chris Jacobs, a Republican from New York.

Jacobs was months late filing various transactions made throughout early- to mid-2021, Forbes reported.

Rep. Bobby Scott, a Democrat from VirginiaRep. Bobby Scott, a Democrat from Virginia.

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.

Rep. Austin Scott, a Republican from GeorgiaRep. Austin Scott, a Republican from Georgia.

Scott, a Republican from Georgia, was a week late reporting a handful of transactions conducted by his spouse.

Rep. Pete Sessions, a Republican from TexasRep. Pete Sessions, a Republican from Texas.

Sessions was a month late in reporting a purchase of stock in Amazon.com.

Rep. Ed Perlmutter, a Democrat from ColoradoRep. Ed Perlmutter, a Democrat from Colorado.

Perlmutter ran a few days late in filing disclosures for as much as $30,000 in stock trades his wife made in June.

Rep. Tom Suozzi, a Democrat from New YorkRep. Tom Suozzi, a Democrat from New York.

Suozzi failed to file required reports on about 300 financial transactions, NPR reported, citing research from the Campaign Legal Center.

Rep. Warren Davidson, a Republican from OhioRep. Warren Davidson, a Republican from Ohio.

Davidson didn’t properly disclose the sale of stock worth up to $100,000, reported NPR, citing Campaign Legal Center research.

Rep. Lance Gooden, a Republican from TexasRep. Lance Gooden, a Republican from Texas.

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.

Rep. Chuck Fleischmann, a Republican from TennesseeRep. Chuck Fleischmann, a Republican from Tennessee.

Fleischmann, a Republican from Tennessee, was late in disclosing a pair of stock transactions together worth up to $30,000.

Rep. Cindy Axne, a Democrat from IowaRep. Cindy Axne, a Democrat from Iowa.

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.

Del. Michael San Nicolas, a Democrat from GuamDel. Michael San Nicolas, a Democrat from Guam.

San Nicolas did not properly disclose two trades — one in 2019 and another in 2020, reported NPR, citing Campaign Legal Center research.

Rep. Peter Welch, a Democrat from VermontRep. Peter Welch, a Democrat from Vermont.

Welch, an outspoken environmentalist, was late disclosing the sale of his wife’s ExxonMobil stock.

Rep. Jim Banks, a Republican from IndianaRep. Jim Banks, a Republican from Indiana.

Banks was a week late reporting a handful of stock transactions.

Rep. Mike Garcia, a Republican from CaliforniaRep. Mike Garcia, a Republican from California.

Garcia was late disclosing several stock trades he made in mid-2020, as first reported by the American Independent.

Rep. Rob Wittman, a Republican from VirginiaRep. Rob Wittman, a Republican from Virginia.

Wittman was a few days late in disclosing four of his stock transactions that included pharmaceutical company Johnson & Johnson.

Rep. Alan Lowenthal, a Democrat from CaliforniaRep. Alan Lowenthal, a Democrat from California.

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.

Rep. Jim Hagedorn, a Republican from MinnesotaRep. Jim Hagedorn, a Republican from Minnesota.

Hagedorn was more than three months late disclosing the sale of stock in a company that makes colon cancer-screening products.

Rep. Roger Williams, a Republican from TexasRep. Roger Williams, a Republican from Texas.

Williams did not properly report three stock transactions his wife made in 2019, reported NPR, citing Campaign Legal Center research.

Read the original article on Business Insider

Politics, Markets, Features, Stocks, Investing, Stock Act, Tom Malinowski, Rand Paul, Dianne Feinstein, mark kelly, Tommy Tuberville, Dan Crenshaw, lori trahan, Cheri Bustos, Susie Lee, Pat Fallon, Sean Patrick Maloney, Brian Mast, Blake Moore, Kathy Castor, Steve Chabot, August Pfluger, Chris Jacobs, bobby scott, Debbie Wasserman Schultz, diana harshbarger, Politics, Cindy Axne, roger williams, Michael San Nicolas, Lance Gooden, warren davidson, Ed Perlmutter, Kevin Hern, Mo Brooks, Chuck Fleischmann, Brian Higgins, Dan Meuser, Cynthia Lummis, Roger Marshall, Austin Scott, Michael Guest, Peter Welch, Kim Schrier, Alan Lowenthal, Mike Garcia, Bill Pascrell, David Trone

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