Paul Pelosi's business investment raises concerns over Washington insider trading

WASHINGTON (TND) — It’s been a decade since a law passed banning members of Congress from trading stocks based on insider information, yet some say the practice is still alive and well in Washington.

Now, there is controversy over new financial disclosures from one of the most powerful people in Washington. Records show the husband of House Speaker Nancy Pelosi, Paul Pelosi, invested between $1 and $5 million in the semiconductor company Nvidia, just weeks ahead of a vote scheduled on a bill that would provide more than $50 billionto the chip industry to move more manufacturing to the United States.

“He’s making those bets based on companies and industries that are highly regulated or are getting stimulus payments or part of stimulus programs that Nancy Pelosi is supporting," saidPeter Schweizer, President of the Government Accountability Institute.

Still, no laws appear to have been broken and a spokesman for Speaker Pelosi told Fox Business, “The speaker does not own any stocks. As you can see from the required disclosures, with which the speaker fully cooperates, these transactions are marked ‘SP’ for spouse. The speaker has no prior knowledge or subsequent involvement in any transactions."

Some lawmakers say they see nothing wrong with Paul Pelosi’s purchase

"That’s his business. That’s how he makes a living. That’s like saying, I’m married to a nurse, should I not vote on any healthcare legislation? It’s not an easy one to figure out," saidRep. Mike Thompson, D-Calif.

But many times, members of Congress are given information before it’s made public, one reason the STOCK Act was passed and signed into law back in 2012.

But since then, critics say it’s been both watered down and unenforced, in part because those tasked with making sure the law is followed work in agencies funded by Congress.”

"We’re essentially asking our law enforcement to investigate the people that provide their paychecks," said Schweizer.

Many lawmakers say they’d be ok with stronger laws on insider trading, including Sen. Richard Blumenthal, D-Conn., who thinks the STOCK Act could be strengthened.

"It’s important for the public to have trust and confidence in public officials," he said.