WASHINGTON — There is “substantial reason to believe” Reps. Pat Fallon, R-Texas, and John Rutherford, R-Fla., both violated the STOCK Act by failing to properly report their stock trades, according to reports by the Office of Congressional Ethics.
Under the STOCK Act, members are required to report their securities trades over $1,000 within 45 days of the execution on forms called periodic transaction reports, also known as PTRs. The penalty for late transactions is $200. These rules are in place to provide transparency around lawmakers’ trades, and to deter them from using nonpublic information gleaned from their jobs to make trades that enrich themselves.
Robust reporting by Insider Inc. on members failing to file periodic transaction reports has grabbed the attention of Capitol Hill over the past year. OCE investigating such matters shows an appetite for congressional watchdogs to examine STOCK Act violations. Whether the Ethics Committee will take action is unclear. Whether lawmakers will tighten restrictions on member stock trading also remains nebulous.
