Democratic Representative Alan Lowenthal is one of the most active stock traders in Congress, and he just violated a federal conflict of interest law. Still.

Alan Lowenthal, a California Democrat, twice violated the Stop Trading on Congressional Knowledge Act by failing to disclose stock trades within federal deadlines.Roll Call Douglas Graham/CQ

  • Representative Alan Lowenthal has twice violated the STOCK Act with late disclosures of stock trades.

  • He is one of 64 members of Congress to have violated the Conflict of Interest Act since last year.

  • Congress is considering banning lawmakers and their spouses from trading individual stocks.

Democratic Rep. Alan Lowenthal of California has again violated federal conflict of interest law — this time failing to properly disclose four corporate stock and bond trades for himself or his wife, a review has found. initiated financial deposits with the US House.

Lowenthal’s wife, Deborah Malumed, sold an Equinox Inc. corporate bond in June 2021 and General Motors stock in August 2021, according to a report the congresswoman filed June 24 with the US House. The congressman also reported that in February 2021, the couple received shares of International Flavors & Fragrances in exchange for shares of DuPont, which spun off the company.

But the federal Stop Trading on Congressional Knowledge (STOCK) Act of 2012 requires members of Congress to report such transactions no later than 45 days after making them, which means Lowenthal was months behind in reporting such transactions.

Together, the trades are worth between $32,000 and $130,000. (Legislators are only required to report the value of their transactions within broad ranges.)

A congressional action disclosure filing of Representative Alan Lowenthal, a California Democrat.

A congressional action disclosure filing of Representative Alan Lowenthal, a California Democrat.United States House of Representatives

Lowenthal spokesman Keith Higginbotham said the congressman was traveling overseas and his congressional office had no immediate comment.

This is the second time in seven months that Lowenthal, which typically reports hundreds of stock trades each year, according to federal records, has violated the disclosure provisions of the STOCK Act.

In November, Lowenthal belatedly revealed his wife’s purchase of a corporate bond in cloud computing and technology company VMWare, worth between $15,001 and $50,000, Forbes first reported. .

“We have no comment,” Higginbotham told Insider at the time.

Numerous violations in Congress

Lowenthal is one of 64 members of Congress that Insider’s “Conflicted Congress” project and other media outlets have identified since 2021 as violating the STOCK Act with late disclosures. At least 182 senior congressional officials also violated STOCK Act disclosure provisions.

Insider reports have also found numerous examples of conflicts of interest among federal lawmakers — both Democrats and Republicans.

It has long been legal for members of Congress to buy, sell and hold individual stocks, including stocks of companies that have significant business ahead of Congress or are likely to be affected by Congressional decisions. .

But lawmakers on the left and right have introduced several bills in recent months that seek to ban or otherwise limit colleagues — and in some cases, spouses — from gambling on the stock market. Lawmakers are actively debating the issue, and some have promised to bring a consensus bill to a vote later this year.

Proponents of the status quo of Congressional actions have argued that current laws are adequate and that members of Congress should have the same investment rights as members of the general public.

Opponents argue that federal lawmakers should be held to the highest standards to avoid financial conflicts of interest, whether real or perceived, and that the STOCK Act has proven inadequate.

“There’s an old expression about being insane and doing the same thing over and over again while expecting a different outcome,” said Dylan Hedtler-Gaudette, government affairs manager for the nonpartisan government watchdog group Project on. Government Oversight. “Congress has clearly entered the realm of fools when it comes to financial conflicts of interest and they need to do something very different in order to give the public the outcome we deserve and expect.”

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