Democratic congressman commits massive stock law violation
A wealthy Democratic congressman violated federal law by tardily disclosing tens of millions of dollars in government securities and stock trades — nearly a year late in some cases, according to a new congressional financial filling.
Rep. David Trone (D-MD) reported 28 transactions involving short-term U.S. Treasury bills and a stock sale, valued between $21.65 million and $97.35 million total.
The transactions took place between April 18, 2023 and November 16, 2023, some nearly a year past a federally mandated 45-day financial disclosure deadline.
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Taken together, Trone’s late disclosures rank among the largest in recent years among members of Congress, based on investigations by Raw Story, Business Insider, the New York Times and other news organizations.
Trone, who on Tuesday lost to Angela Alsobrooks in a Democratic primary for U.S. Senate in Maryland despite massive personal spending, also reported his spouse’s sale of Pepsico stock, valued between $50,001 and $100,000, on Nov. 1, more than four months late.
“Congressman Trone is and always has been in good standing with the House Ethics Committee,” Sasha Galbreath, a spokesperson for Trone, told Raw Story via email without further elaborating.
Galbreath referred further questions about Trone’s financial disclosure to his attorney, Meryl Governski. Governski did not respond to Raw Story’s request for comment.
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Members of Congress are required to publicly report — within 45 days — most purchases, sales and exchanges of stocks, bonds, commodity futures, securities and cryptocurrencies as outlined by the Stop Trading on Congressional Knowledge (STOCK) Act.
The STOCK Act, passed by Congress in 2012, is designed to defend against conflicts of interest, curb insider trading and enhance public transparency.
Lawmakers only need to disclose the values of their transactions in broad ranges.
This isn’t the first time Trone violated the STOCK Act. He submitted multiple late disclosures in 2021, which included stock trades and structured notes, Business Insider reported.
Trone, the founder and co-owner of Total Wine, spent at least $62 million of his own money in a losing effort against Alsobrooks.
The standard fine for violating the STOCK Act is $200. Often, the fee is waived by the House Committee on Ethics and Senate Select Committee on Ethics.
“No comment,” Tom Rust, staff director and chief counsel for the House Committee on Ethics, said.
Republicans violate disclosure law this week
Rep. Doug Lamborn (R-CO) speaks outside the U.S. Capitol on May 19, 2021. Lamborn was late disclosing up to $150,000 in stock purchases. (Photo by Chip Somodevilla/Getty Images)
Two other congressmen submitted late financial disclosures this week as well.
Rep. Doug Lamborn (R-CO) was over a week late disclosing three purchases of stock in data company NetApp through an individual retirement account. The purchases were each valued between $15,001 and $50,000.
Lamborn also violated the STOCK Act in 2022, Business Insider reported. Lamborn’s congressional office did not respond to Raw Story’s request for comment.
Rep. Glenn Grothman (R-WI) reported three purchases of U.S. savings bonds, ranging from nearly two weeks to 14 months late. Each purchase was valued between $1,001 and $15,000.
Rep. Glenn Grothman (R-WI) speaks during a House Committee on Oversight and Reform hearing on gun violence on June 8, 2022. Grothman violated the STOCK Act again with late savings bond disclosures. (Photo by Andrew Harnik-Pool/Getty Images)
Grothman, who introduced in 2018 the Member Financial Transparency Act to curb “insider trading-like” activities, was previously more than a year late in disclosing Series I savings bond purchases, according to a June 27 federal financial disclosure, Raw Story reported.
Grothman’s congressional office did not respond to Raw Story’s request for comment.
Trone, Lamborn and Grothman find themselves on a growing list of federal legislators in the 118th Congress who have violated the STOCK Act. Since Jan. 2023, Raw Story has found at least 45 members of Congress who have broken the law.