Despite the fact that insider trading, even by members of Congress, is illegal, Speaker of the House Nancy Pelosi and her husband have gotten rich off of it.
According to new financial disclosure forms, the speaker’s husband, Paul Pelosi, purchased millions of dollars worth of Microsoft (MSFT) and Roblox (RBLX) shares last month.
Fox Business reports: “Paul Pelosi exercised call options and paid $1.95 million to buy 15,000 shares of Microsoft at a strike price of $130 on March 19, according to an April 9th filing with the House clerk. That same day, Pelosi, who owns and operates a California venture capital investment and consulting firm, paid $1.4 million for 10,000 shares valued at $140 apiece… In addition to purchasing Microsoft shares, Paul Pelosi paid between $500,000 and $1 million to buy 10,000 shares of Roblox Corp. on March 10, the day the online game platform went public.”
Soon after the purchase was made, the share price of Microsoft rose from around $230 to approximately $255, which is close to an 11% increase. This increase was mainly due to the fact that the company had secured a government contract that was worth nearly $22 billion. The deal, which was announced on March 31, allowed Microsoft to supply Army combat troops with augmented reality headsets.
Under the 2012 STOCK Act, it is illegal for members of Congress and their family members to profit from inside information.
If the average American citizen had knowledge of this deal prior to it being announced, and had made a similar trade, they could face fines and potentially be thrown in jail, and of course lose all of their profits. But Nancy Pelosi isn’t the average American, she’s an elite politician. Apparently, the rules don’t apply to her.