- Democratic Rep. Ed Perlmutter was late disclosing stock investments, per federal law.
- His wife, a teacher, made the stock trades.
- The trades involved Chinese e-commerce giant Alibaba and Warren Buffett’s Berkshire Hathaway.
- See more stories on Insider’s business page.
Rep. Ed Perlmutter, a Colorado Democrat, ran a few days late in filing as much as $30,000 in stock trades his wife made in June — a violation of the federal STOCK Act’s transparency provisions.
This makes him the latest in a string of federal lawmakers to violate the STOCK Act.
Nancy Perlmutter sold as much as $15,000 in stock in e-commerce company Alibaba Group Holding Limited. The company has ties to the Chinese Communist Party, for which it reportedly helped produce a propaganda app. The disclosure shows that after her sale, on June 14, she retained some shares in the company.
Nancy Perlmutter, a public school teacher who has spoken openly about her friendship with first lady Jill Biden, also bought up to $15,000 worth of stock in Berkshire Hathaway, billionaire Warren Buffett’s holding company, on June 16.
Federal lawmakers are required to report the values of their stock trades only in broad ranges, meaning the reports do not detail the precise amount of the trade unless lawmakers choose to disclose them.
Ed Perlmutter didn’t disclose the transactions until August 24. Under the federal STOCK ACT, members of Congress have 45 days from the date of a trade to formally disclose it in a certified report to the Clerk of the House of Representatives.
Perlmutter’s office said a miscommunication was to blame.
“It does appear this disclosure was filed three days after the 45-day deadline for stocks owned solely by Rep. Perlmutter’s spouse,” Ashley Verville, communications director for Perlmutter, told Insider. “This was due to a miscommunication with Rep. Perlmutter’s accountant. This is the first time it has happened and we don’t expect it to happen in the future.”
The STOCK Act’s stock reporting requirement was created to force lawmakers to reveal how they make money outside of Congress. It’s intended for transparency that might shed light on any conflicts of interests or insider trading.
Although Perlmutter flew past the deadline, he isn’t likely to face a fine, which begins at $200. Congressional officials generally provide late filers a grace period of 30 days during which they waive a monetary penalty.
Some members of Congress stay away from trading stocks altogether.
Sen. Jeff Merkley, a Democrat from Oregon, in March introduced a bill, called the “Ban Conflicted Trading Act,” that would prohibit members of Congress from trading individual stocks. (It has not yet received a hearing.)
The STOCK Act holds members of Congress personally responsible for complying with disclosure rules, regardless of whether they make stock trades themselves or use a financial advisor or broker.
In addition to Perlmutter, lawmakers who this year appear to have violated the STOCK Act’s transparency provisions include:
- Sen. Dianne Feinstein, a Democrat of California
- Sen. Tommy Tuberville, a Republican of Alabama
- Sen. Rand Paul, a Republican of Kentucky
- Sen. Mark Kelly, a Democrat of Arizona
- Rep. Tom Malinowski, a Democrat of New Jersey
- Rep. Pat Fallon, a Republican of Texas
- Rep. Dan Crenshaw, a Republican of Texas
- Rep. Sean Patrick Maloney, a Democrat of New York
- Rep. Blake Moore, a Republican of Utah
- Rep. Debbie Wasserman Schultz, a Democrat of Florida
- Rep. Kathy Castor, a Democrat of Florida
- Rep. Lori Trahan, a Democrat of Massachusetts
- Rep. Steve Chabot, a Republican of Ohio
- Rep. Cheri Bustos, a Democrat of Illinois
- Rep. August Pfluger, a Republican of Texas
- Rep. Diana Harshbarger, a Republican of Tennessee
- Rep. Brian Mast, a Republican of Florida
- Former Rep. Harley Rouda, a Democrat of California who’s attempting a comeback, also failed to properly disclose stock trades.
Rep. Lois Frankel, a Democrat of Florida, likewise appears to have violated the STOCK Act with disclosures a few days late, though her office has disputed that.