A top member of the House Democratic caucus, Rep. Sean Patrick Maloney (D-NY), has been exposed for violating House ethics rules as well as federal law regarding transparency on stock trading.
Maloney, who serves as chairman for the Democratic Congressional Campaign Committee (DCCC), appears to have only just now formally reported the sale of stocks last summer, which by law are required to be reported no more than 30-45 days after a transaction is made, Breitbart reported.
The powerful Democratic congressman has attempted to explain away this transgression as a minor oversight on his part, though he has acknowledged the violation and willingness to face whatever consequences may come.
According to Business Insider, Maloney inherited several stock shares from his mother when she passed away in 2020, including in companies like Apple Inc., Microsoft Corporation, and investment firm BlackRock Inc., among others.
The congressman sold those shares in June 2020 for a total windfall of $11,051 but only reported that transaction last week. That is a problem, Business Insider noted, because both federal law and House ethics rules mandate that all stock trades made by members of Congress must be disclosed in a “periodic transaction report” no later than 30-45 days after the transaction occurred.
In an April 2 letter to the House Clerk, Maloney admitted, “During preparation for the filer’s report, it was determined that these 8 transactions totaling $11k should have been reported on a [periodic transaction report],” and added, “As soon as this oversight was discovered, this filing was submitted to provide full transparency into that sale.”
In a statement to Business Insider, Maloney spokeswoman Libbie Wilcox said the congressman had yet to hear anything in regard to those transactions from either the House Ethics Committee or the Office of Congressional Ethics. “We assume this is a routine belated filing issue, and if there is a penalty of course we will pay,” she said.
GOP slams Maloney as “incompetent crook”
The National Republican Congressional Committee (NRCC), the GOP counterpart to the DCCC, jumped at the chance to highlight Maloney’s transgression and shared the contents of the Business Insider report in a press release of its own.
In response to the apparent violation of federal law and House ethics requirements, NRCC spokeswoman Samantha Bullock said quite simply, “House Democrats chose an incompetent crook to lead their campaign arm.”
Maloney’s oversight will almost certainly also be seized upon in the upcoming 2022 midterm elections by his GOP challenger, New York state Assemblyman Colin Schmitt (R), who in a separate interview with Breitbart days earlier accused the Democratic congressman of having “abandoned” and “sold out” voters in the state’s 18th Congressional District.
Though Democrats and many in the media will undoubtedly dismiss Maloney’s alleged “oversight” as no big deal, it is nonetheless a violation of financial law — not exactly a good look for the Democrat in charge of fundraising and reelection efforts to expand the slim Democratic majority in the House.
How this scandal impacts those fundraising and reelection efforts remains to be seen, but in the meantime, Breitbart noted that House Republicans, led by House Majority Leader Kevin McCarthy (R-CA) and House Minority Whip Steve Scalise (R-LA), have been bringing in record amounts of campaign contributions for the GOP effort to reclaim control of the House.