Page 4 - ARUBA TODAY

A4 U.S. NEWS
Friday 10 august 2018

Member of Congress, member of corporate board? It's allowed

By RICHARD LARDNER veloped to treat multiple
WASHINGTON (AP) — The sclerosis was a clinical fail-
indictment of Rep. Chris ure. They said Collins told
Collins on insider trading his son, who then dumped
charges is drawing new his stock in the company
attention to the freedom before the trial results were
members of Congress announced publicly. Sev-
have to serve on corporate eral other people also ben-
boards or to buy and sell efited from the inside infor-
stock in industries they're mation.
responsible for overseeing. A law known as the STOCK
Collins, a New York Re- Act and signed into law by
publican, has denied any President Barack Obama in
wrongdoing stemming April 2012 prevents mem-
from his involvement with bers of Congress "from
Innate Immunotherapeu- trading stocks based on
tics Limited, a biotechnolo- nonpublic information they
gy company based in Syd- gleaned on Capitol Hill," ac-
ney, Australia. He was In- cording to a White House
nate's largest shareholder, fact sheet issued at the
holding nearly 17 percent time. The law also required
of its shares. He also was a that members of Congress
member of the company's report certain "investment
board of directors — an ar- In this July 19, 2016 file photo, Rep. Chris Collins, R-NY. speaks in Cleveland. transactions" within 45 days
rangement that itself isn't a Associated Press of making the trade.
violation of the law. Yet it's But, according to a report
a connection that can cre- stunned" by Collins' posi- of high-level executive "There should never be a Holman issued last year,
ate the potential for con- tion, said Holman. "'Really, branch officials," Clark said. doubt in the public's mind the law's primary goal was
flicts of interest. they can sit on a board of Stan Brand, senior coun- to lead them to think their to reduce insider trading by
Members of Congress are directors?'" sel at the Washington law Representative could be members of Congress, "not
not prohibited from serv- Government ethics lawyer firm Akin Gump and for- corrupted or incriminated reduce stock trading per
ing on corporate boards as Kathleen Clark said anoth- mer general counsel to the because of their stake or se."
long as they don't receive er downside of permitting House, said the strength position in a private com- Public Citizen compiled a
any compensation for do- members of Congress to of the laws against insider pany," Rice and Reed said database of stock trad-
ing so. be on corporate boards is trading should allay fears in a joint statement. ing activity by U.S. senators
The thinking behind this ex- that they may feel a sense about corporate board It's difficult to know how three years before the law's
ception, which doesn't ex- of loyalty to the business, service by lawmakers. It's ir- many lawmakers have passage and three years
tend to top-level executive spurring them to share in- relevant whether members board positions. Each after. It found that "many
branch officials, is to ensure formation with the compa- serve on boards, he said. It's member of Congress files a individual senators con-
that lawmakers aren't pre- ny they obtained through what they do with sensitive financial disclosure report tinue to be very active in
vented from accepting government service. information that counts. each year, but there's no the stock market and often
positions on the boards of Clark, a law professor at Brand said the potential central database where trade stocks in businesses
charities or other philan- Washington University in distraction of being on a that information is avail- that they oversee in their
thropic organizations, ac- St. Louis, also challenged corporate board should be able. official capacity."
cording to Craig Holman of the notion that service on a bigger concern. Collins was arrested For example, the report
the nonpartisan advocacy non-commercial organiza- "Being a member of Con- Wednesday and charged said Sen. Bob Corker, R-
group Public Citizen. tions is inherently altruistic gress is supposed to be a with conspiracy, securities Tenn., traded hundreds of
Holman, who lobbies in and doesn't come with po- full-time job," he said. fraud, wire fraud and mak- thousands of dollars worth
Washington for stricter gov- tential conflicts of interest. Two New York lawmak- ing false statements to the of stock in energy infra-
ernment ethics and lobby- Even nonprofits can have ers, Democrat Kathleen FBI. Parallel charges were structure businesses while
ing rules, noted that law- an interest in seeing partic- Rice and Republican Tom filed against two other peo- he was a member of the
makers are often privy to ular legislation passed, she Reed, announced Thurs- ple, including Collins' son. Senate Banking Commit-
sensitive information before said. day they plan to introduce Prosecutors say Rep. Collins tee. And Sen. Tom Udall,
it becomes public. That "In almost every situation, legislation that would up- got an email from Innate's D-N.M., traded in natural
makes the opportunity for the ethics standards mem- date House rules to prohibit CEO while attending a pic- resources and precious
insider trading "very preva- bers of Congress impose members from serving on nic last year at the White metal stock while on a sub-
lent," he said. on themselves are more the boards of publicly held House that said a trial of committee that oversees
"My own office was lax than what they require companies. a drug the company de- these industries.q