Sitting members of Congress are allowed to play the stock market like any American, however, they’re required to adhere to a strict set of disclosure rules. While most of them abide by such rules, some apparently do not.
According to Breitbart, Rep. Tom Malinowski (D-NJ) now faces a House Ethics Committee investigation over hundreds of stock trades that some believe violated the federal STOCK Act. In a bipartisan effort, the committee made the announcement this week.
Rep. Ted Deutch (D-FL), committee chairman, and ranking committee member Rep. Jackie Walorski (R-IN) agreed to launch the investigation.
What happens now?
The House Ethics Committee tweeted out a carefully worded announcement, indicating that it doesn’t know if Malinowski has violated any laws, noting that the committee will investigate the “subject of the matter.”
1/ NEW: “Chairman and Ranking Member of the Committee on Ethics have jointly decided to extend the matter regarding Representative Tom Malinowski …”
A decision will be announced “on or before … October 21, 2021.”
— Dave Levinthal (@davelevinthal) September 7, 2021
It was earlier this year that Business Insider ran a bombshell report detailing Malinowski’s potential STOCK Act violations — claims that were brought by at least two other groups to Congress for a potential investigation.
The committee’s statement indicated that it will “announce its course of action in this matter” on or before Oct. 21.
Malinowski’s in trouble
The New Jersey Democrat’s stock trading troubles began in 2020, not long after the COVID-19 pandemic. The congressman reportedly filed appropriate paperwork for some $671,000 in trades past the required deadline.
He would eventually cease his trading activity and requested permission from the House Ethics Committee to place all of his assets in a blind trust following the numerous complaints filed against him.
But later in the year, Malinowski amended several of the late reports which disclosed even more trades — this time from 2019 — that were not properly filed. Congressmembers have 30 to 45 days to file the proper paperwork for stock trades.
“Trading Tom Malinowski’s corrupt behavior is finally catching up to him. Voters – and potentially the House Ethics Committee – will hold Malinowski accountable for his illegal activities,” National Republican Congressional Committee’s (NRCC) Camille Gallo said of the announcement of the investigation.
Only time will tell what the committee finds, but given the available information surrounding his stock market activity, it appears as if Malinowski would be wise to spend some of his money on top legal talent because it looks as though he’ll need it.