Democrat Rep. buys stock and it spikes 313% – then fails to disclose the purchase of shares for more than one year
Representative Debbie Wasserman Schultz, a Democrat from Florida’s 25th congressional district, has just now disclosed the purchase of New Gold Inc. (NYSE: NGD) made on February 28, 2024, with the transaction valued between $1,001 and $15,000.
Wasserman didn’t officially report the purchase until July – which is a violation of the STOCK Act, which mandates disclosure within 45 days.
In addition, she is the only member of Congress known to have bought NGD shares.
Since her purchase NGD’s stock price has surged 313% – This outperforms the S&P 500’s 22% return over the same period.
Schultz’s trade has sparked ethical questions because of the unusually high gain and her late reporting with some saying she had inside information.
The STOCK Act violation carries a potential fine of $200, however no member of Congress has been prosecuted for insider trading under this law.
Her portfolio, which saw a 142.3% increase in 2024, has drawn attention for its performance, with other trades including Hecla Mining (NYSE: HL) and Patterson-UTI Energy (NASDAQ: PTEN).
Critics note her history of trading in sectors like energy and mining, some of which fall under the jurisdiction of committees she serves on, such as the House Natural Resources Committee, raising concerns about conflicts of interest.
Others in congress have also been flagged for their abnormally high stock market gains while in congress
Nancy Pelosi 58 trades since December 2021, totaling $50.88 million.
Her trading activity has fueled calls for banning congressional stock trading, with some arguing her committee roles provide an informational edge.
Brian Higgins New York: Portfolio Return 238.9% (S&P 500: 24.8%).
Josh Gottheimer New Jersey – $96 million in stock market investments, the highest among Congress members.
