EXCLUSIVE — A Democratic congressman appears to have skirted federal law by disclosing a stock trade well past the required deadline, according to experts.
Rep. Seth Moulton (D-MA) disclosed on Wednesday to the House clerk that his wife, Liz Boardman, sold up to $100,000 in shares of Activision Blizzard, a major video game company that Microsoft seeks to acquire. But because this sale was made all the way back in September 2022, Moulton likely ran afoul of the STOCK Act, which requires lawmakers to report trades worth at least $1,000 within 30 to 45 days of the transaction, two ethics experts said.
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“The law requiring disclosure is extremely important because it is the only mechanism to determine whether a member’s official action was influenced by personal investments or a member wrongfully profiting from their official position,” Kendra Arnold, executive director of the right-leaning watchdog Foundation for Accountability and Civic Trust, told the Washington Examiner. “Members are well aware of their duty to disclose, and there is no excuse for inaccurate, incomplete, and late filings.”
The STOCK Act passed in 2012 and aims to crack down on the potential for insider trading among members of Congress. Dozens of Republicans and Democrats have appeared to not follow the disclosure law over the years, including Rep. Pat Fallon (R-TX), who failed to report up to $21 million in stock trades, the Office of Congressional Ethics, which investigates misconduct allegations and may refer matters to the House Ethics Committee, voted in February 2022.
Lawmakers and their personal finances have come under heightened scrutiny in the last several years. Reps. Chip Roy (R-TX), Abigail Spanberger (D-VA), Pramila Jayapal (D-WA), and Raja Krishnamoorthi (D-IL) renewed a push in March during a House Administration Committee hearing to ban or restrict member stock trading.
Then-House Speaker Nancy Pelosi (D-CA) backed legislation last year that would prohibit Supreme Court justices, executive branch members, senior congressional staff, and members of Congress and their spouses from trading. However, watchdogs claimed the bill had a blind trust “loophole” that would allow lawmakers to still be able to oversee their portfolios.
Moulton, who assumed office in 2015, is in clear “violation” of the STOCK Act, according to Craig Holman, a government affairs lobbyist for the left-wing think tank Public Citizen.
“The law is important for the prevention of congressional insider trading,” he told the Washington Examiner. “Members of Congress have access to confidential material information that may have a direct impact on the economy and the stock market.”
The congressman’s Activision Blizzard disclosure is not the first example of him filing trades past the federally required deadline. His wife bought up to $15,000 in shares of Amazon in August 2022, and he only revealed the transaction over five months later, in late January 2023, records show. The January report also showed that Boardman sold up to $100,000 in Activision Blizzard shares in September 2022.
Similarly, Moulton filed a disclosure in August 2021 showing that Boardman sold up to $250,000 in shares of nonpublic Spencer Stuart Management Consultants stock in February 2021, roughly six months earlier, according to a disclosure.
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Moulton’s office and the Office of Congressional Ethics did not reply to requests for comment.
“When members ignore that disclosure requirement, the public has no way to monitor whether members are complying with the law,” Holman added.
