While insider trading has been an issue that has long plagued US politics, some instances are so obvious and contradictory that they are sure to raise some questions.
Namely, US Representative Sean Casten has recently revealed his acquisitions of bonds in MYNO Carbon, a company specializing in carbon removal.
Casten holds a position on the House Select Committee on the Climate Crisis, underscoring his vested interest and involvement in matters pertaining to environmental issues and carbon reduction strategies.
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Further influence-related issues and STOCK Act violation
The trades by Casten wouldn’t be so suspicious if it weren’t for the moral and professional implications they carry with them.
It has come to light that Representative Sean Casten’s father, Thomas Casten, holds the chair position on the board of MYNO Carbon, the same company in which Casten recently disclosed purchasing bonds, as reported by Quiver Quantitative on February 29.
Notably, these trades were disclosed significantly past the 45-day reporting deadline stipulated by the STOCK Act, raising concerns regarding transparency and compliance with financial disclosure regulations.
Furthermore, Casten’s involvement in various energy-related legislative initiatives holds the potential to directly influence policies that could impact MYNO Carbon, underscoring the importance of scrutinizing such financial transactions within the context of his legislative activities.
Penalties for violation of STOCK Act
The insider trading conducted by prominent US politicians in companies raises significant ethical concerns, particularly regarding their access to privileged information ahead of the general public.
While the breach of the STOCK Act, designed to prevent such practices, would seemingly carry harsh consequences, it’s noteworthy that the penalty for violating the 45-day reporting period is merely $200, frequently waived by House or Senate ethics officials.
This leniency has sparked criticism from ethics watchdogs and even some members of Congress, who advocate for stricter penalties or a complete ban on federal lawmakers from trading individual stocks.
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