Slaughter Responds to Issuance of Subpoenas in Growing Political Intelligence Scandal
|Targeted News Service|
"Today's news demonstrates why it is so essential to shine a light on the political intelligence industry, which generates more than
When Representative Slaughter first wrote the STOCK Act, she included a requirement for disclosure and oversight of political intelligence professionals under the Lobbying Disclosure Act. The provision was stripped from the bill by outgoing Majority Leader
Representative Slaughter plans on re-introducing a bill to require disclosure of political intelligence activities during the 113th
Prosecutors Gathering Evidence for Grand Jury in
Public documents show federal law-enforcement officials and the
The SEC sent subpoenas to the House committee and
The subpoenas are related to criminal and civil investigations examining whether anyone in the government illegally passed along nonpublic information about the health policy that ended up in the hands of traders, according to people briefed on the matter. The probe was sparked by a 2013
The stock surge was prompted by an email sent by a
The activity surrounding the federal grand jury wasn't previously known and signals that prosecutors haven't given up on the matter.
It is highly unusual for the
Insider-trading investigations involving information that originates from within the government are different from traditional insider cases. Under securities rules, company executives are prohibited from discussing nonpublic, market-moving information about the company with individual investors.
Until recently, it had been unclear how such restrictions applied to government officials. But a 2012 congressional stock-trading law stipulated that public officials have a legal duty to keep confidential any nonpublic information about government actions that could affect stock prices.
The subpoenas suggest prosecutors are seeking information from officials in the
A spokesman for the SEC declined to comment, as did a spokeswoman for the
It isn't known whether
CMS launched its own investigation into whether officials there improperly leaked word of the policy change.
A spokesman for the agency said its investigation has been referred to the
The information given to the
Federal prosecutors and SEC investigators have spent more than a year seeking to identify who those "credible sources" were and to determine whether they broke insider-trading rules. It would be illegal if someone in the government leaked word to
The investigation is part of a new focus by SEC and law-enforcement officials into possible violations of securities rules involving trades based on information about government policy.
Federal securities regulators have been eager to bring an insider-trading case against a government official since the 2012 law made clear that members of
"The SEC recognizes that the strongest deterrent message to Hill staff will be in an insider-trading case," said
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