US Markets Loading…
2021-12-31T19: 27: 27Z
- 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 California
Feinstein was months late disclosing a five-figure investment her husband made into a private, youth-focused polling company.
Sen. 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 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 Wyoming
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 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 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. 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. 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 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 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 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 Florida
Wasserman Schultz was months late reporting four stock trades made either for herself or her child.
Rep. 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 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 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. John Rutherford, a Republican from Florida
Rutherford failed to properly disclose five individual stock transactions he made in late 2020.
Rep. 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. Bill Pascrell, a Democrat of New Jersey
Pascrell was overdue reporting stock trades he made in December 2019 in General Electric and in August 2019 in pharmaceutical company Johnson & Johnson.
Rep. Brian Higgins, a Democrat from New York
Higgins was about 11 months late disclosing three stock trades he made in late 2020.
Rep. 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 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. 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 York
Jacobs was months late filing various transactions made throughout early- to mid-2021, Forbes reported.
Rep. 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 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 Texas
Sessions was a month late in reporting a purchase of stock in Amazon.com.
Rep. 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 Ohio
Davidson didn’t properly disclose the sale of stock worth up to $100,000, reported NPR, citing Campaign Legal Center research.
Rep. 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 Guam
San Nicolas did not properly disclose two trades — one in 2019 and another in 2020, reported NPR, citing Campaign Legal Center research.
Rep. Jim Banks, a Republican from Indiana
Banks was a week late reporting a handful of stock transactions.
Rep. 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. Alan Lowenthal, a Democrat from California
Lowenthal was late disclosing his wife’s purchase of a
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 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 Texas
Williams did not properly report three stock transactions his wife made in 2019, reported NPR, citing Campaign Legal Center research.