Congressional Stock Trades Raise STOCK Act Violation Concerns
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Recent financial disclosures from U.S. Congressmen Darin LaHood and Darrell Issa have attracted attention for potential violations of the STOCK Act. Both lawmakers delayed reporting significant trades, raising concerns over transparency in government.
Rep. Darrell Issa, representing California’s 48th District, is a former businessman and military officer. He divested nearly $355 million in U.S. Treasury Bills before their maturity dates. The sales, which spanned several months in 2024, were only disclosed much later. Issa's actions breached the STOCK Act, which mandates that trades be reported within 45 days.
Meanwhile, Rep. Darin LaHood, who serves Illinois’ 16th District and has been in office since 2015, reported the sale of West Suburban Bancorp shares nearly two years after the trade occurred. LaHood divested about $15,000 worth of stock in November 2022, but the trade was only disclosed on September 27, 2024, marking a significant delay.
These delayed reports have sparked renewed discussion about the effectiveness of the STOCK Act, emphasizing the need for timely and transparent disclosures to maintain public trust in congressional trading activities. Adding to these concerns, the Campaign Legal Center recently filed a complaint against Rep. Byron Donalds for violating the STOCK Act by failing to disclose over 100 stock transactions worth up to $1.6 million. Donald's trades, made between 2022 and 2023, include companies that donated to his campaign or lobbied on bills he supported, raising ethical concerns. Despite Donald's public statements supporting the STOCK Act, his failure to file timely disclosures highlights a broader, bipartisan trend of lawmakers neglecting transparency regulations.
These delayed reports, along with Donald's failure to report at all, underscore the STOCK Act’s shortcomings. Minimal penalties have not been sufficient to deter violations, as the current fines—starting at just $200—pale in comparison to the potential financial gains. The call for stricter enforcement is growing louder, with many arguing that reforms like the ETHICS Act are necessary to prevent conflicts of interest and restore public trust.
