Democratic House lawmaker calls for federal investigation into Sen. David Perdue (R-GA) buy and sell shares of US Navy contractor while chairman of subcommittee Senator responsible for Navy spending, first reported by The Daily Beast last. the week.
On Tuesday, Representative Raja Krishnamoorthi (D-IL), chairman of the House Oversight Committee’s economic policy subgroup, sent a letter to Jay Clayton, chairman of the Federal Securities and Exchange Commission, asking him to ” investigate Perdue’s investment in BWX Technologies for any evidence of wrongdoing.
In December 2018, a month before he was announced as chairman of the Senate Armed Services subcommittee on Seapower, Perdue began buying thousands of dollars of stock in BWX, which manufactures nuclear reactors and other parts for submarines. As his committee worked to pass the annual defense spending bill in 2019 – which set aside $ 4.7 billion for a new submarine the company was specializing in – Perdue sold its shares in BWX with a profit, with sales totaling up to $ 385,000, according to his official financial statements.
Perdue’s office said the senator has no influence over his stock portfolio, which they say is managed by an independent advisor. His office did not immediately respond to a request for comment on Krishnamoorthi’s letter. An SEC spokesperson declined to comment.
Under the STOCK law, passed in 2012, lawmakers are prohibited from using the information they glean in the course of their official duties for personal purposes. The law has proven difficult to enforce. But in recent years, many lawmakers have increasingly sold their holdings of individual stocks in order to avoid the appearance of a conflict of interest or to place those holdings in a blind trust. Indeed, after reviewing its transactions earlier this year, Perdue announced that it would sell its investments in individual stocks.
“I firmly believe that members of Congress should be prohibited from buying or selling individual stocks during their tenure in order to avoid any potential conflict of interest,” Krishnamoorthi wrote. “But until we pass this necessary legislative reform into law, it is the SEC’s responsibility to investigate whether members of Congress, such as the Senator [Perdue], in fact use their official functions for their own benefit and to enforce the law to the extent necessary. “
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