Rep. Josh Gottheimer is backing a bipartisan bill that could prevent members of Congress from trading stocks, yet the New Jersey Democrat recently disclosed having millions in Microsoft options, financial disclosures show.
Gottheimer disclosed between $6 million and $27 million in Microsoft call options between Feb. 12 and Feb. 13 that were acquired under a third-party, according to congressional financial disclosures. Gottheimer had previously pledged to put his assets in a blind trust and co-sponsors the Trust in Congress Act, which would ban federal legislators from trading securities by requiring them to put their assets in blind trusts, according to the congressman’s website.
Call options are contracts between buyers and sellers to purchase a stock at a given price up until a predetermined expiration date. If the person buying the option sets the price below the market price at a given point in time, and executes their trade, they turn a profit.
The options were acquired under a sub-holding of a Morgan Stanley Portfolio Management Active Assets Account, the disclosures show.
The Trust in Congress Act was first introduced by Virginia Democratic Rep. Abigail Spanberger and Texas Republican Rep. Chip Roy in 2020 and was reintroduced in 2021, but never made it out of committee despite being co-sponsored by Gottheimer and 74 other members of Congress, legislative records show. The legislation was reintroduced a second time by Roy and Spanberger in January 2023, again being co-sponsored by Gottheimer.
“I don’t believe Members of Congress, judges, or any government employee in a policy role, should be involved in the day-to-day trading of securities, including crypto currencies,” Gottheimer said in 2022.
It’s unclear whether the congressman has established a blind trust, according to a review of federal disclosures.
.@RobinhoodApp needs to explain why they’re restricting trading & canceling stock orders.
That is NOT a free market.
Let’s get to the bottom of this. https://t.co/in8ukspkxH
— Rep Josh Gottheimer (@RepJoshG) January 28, 2021
Gottheimer previously worked at Microsoft as a general manager of advertising and strategy, according to the congressman’s LinkedIn page.
The New Jersey congressman has allegedly run afoul of laws regulating congressional securities trading before. Gottheimer allegedly failed to report a stock trade within 45 days, as required under the STOCK Act, in 2022, Business Insider reported.
Rep. Tom Malinowski, another New Jersey Democrat, put his assets in a blind trust in 2021 after it was reported that he allegedly violated the STOCK Act and was facing an ethics investigation, according to Business Insider. Malinowski filed a blind trust agreement with congressional officials which stipulated that he would have no knowledge regarding if or when his existing assets are sold nor what assets the proceeds are reinvested into, according to a filing.
When establishing a blind trust, one often needs to pay financial professionals to manage their assets, according to Business Insider. Malinowski, for instance, indicated on his filing that he is paying an undisclosed amount to have his assets managed.
Gottheimer’s office did not respond to the Daily Caller News Foundation’s multiple requests for comment.
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