Lawyers for the House of Representatives have escalated their legal fight to block the first-ever congressional insider trading investigation.
The case revolves around allegations that Brian Sutter, a former senior staff member of the Ways and Means Committee, passed along nonpublic information concerning a Medicare reimbursement rate change to a lobbyist with Greenberg Traurig in April 2013.
The information was then disclosed to a consulting firm that shared the tip with it’s financial clients. A number of the hedge funds appeared to use the insider tip to trade on stocks that would be impacted.
The Securities and Exchange Commission opened an investigation and served subpoenas on Sutter and the Ways and Means Committee.
Despite passing a bipartisan law to address the very issue of congressional insider trading — the Stop Trading on Congressional Knowledge Act, or STOCK Act of 2012 — congressional attorneys have fought the SEC investigation at every turn. First they refused to comply with the subpoenas.