Rep. Kim Schrier failed to properly disclose purchase of more than $500,000 of Apple stock
- Schrier reported Nov. 12 that she had bought up to $1 million Apple shares Jul. 27
- Under federal law, politicians are meant to declare such trades within 54 days
- Schrier, 53, says her husband made the transaction through a joint account
- She serves on Energy and Commerce Committee, overseeing internet laws
Democratic Representative Kim Schrier was more than two months late in disclosing a purchase of Apple stock worth up to $1 million, according to recent filings.
Schrier reported on November 12 that she had bought between $500,000 and $1 million worth of Apple shares through a joint account on July 27.
Under federal law, politicians are required to disclose security trades within 45 days, meaning that she should have disclosed the transaction by mid-September.
Schrier, 53, serves on the Energy and Commerce Committee which has direct oversight of electronic communications and the internet, clearly falling within the sphere of influence of Silicon Valley giant Apple.
Her spokeswoman Libby Carlson, said the Washington congresswoman was ‘unaware’ of the trade because it was made by her husband, David.
Schrier, who serves on the Energy and Commerce Committee, using an Apple laptop on Capitol Hill in October. She says the husband made the trade without her knowledge
The Apple share price has increased by around 2.7 percent since Schrier bought between $500,000 and $1 million worth of stock in late July. That means the value of her investment will have increased by at least $13,600, but could have soared by as much as $27,000
The Apple share price has increased by around 2.7 percent since Schrier and her husband made the move.
That means the value of their investment has increased by at least $13,600, but could have soared by as much as $27,000, depending on exactly how much they staked in the company.
‘Rep. Schrier was unaware of the transaction, which was made by her husband who handles their finances independently. As soon as she became aware, she filed the required report,’ Carlson told Business Insider.
The spokeswoman added that her boss ‘has never before missed a transaction reporting deadline, and will make sure all such deadlines are met in the future.’
Lawmakers violate the Stop Trading on Congressional Knowledge Act of 2012, commonly known as the STOCK Act, if they fail to publicly disclose a stock trade within 30 days from when they become aware of the trade made for themselves or by their spouse – or from 45 days from the date of the transaction.
Late disclosure results in a minimum $200 fine, although this is often waived if this is less than 30 days late.
The STOCK Act was passed with bipartisan support in 2012 following a Congressional stock-trading scandal. It was cheered by government ethics groups and watchdogs as a long-overdue step.
But in the nearly decade since, no one has been convicted under the law.
So far this year, 46 members of Congress have failed to properly report their financial trades as mandated by the STOCK Act.
Legal experts say insider trading cases are exceptionally difficult to prosecute because they require definitively proving whether someone acted on nonpublic information. That hinges on demonstrating intent – a high burden.