Sens. Mark Warner and Adam Schiff are calling for an investigation into potential insider trading by federal officials, pointing to trades made before major policy announcements like the Iran strike and Trump's tariffs.
Senators' Formal Request
- On Thursday, the lawmakers sent a letter to SEC Chair Paul Atkins and Pentagon Inspector General Platte Moring.
- They cited public reporting of "large positions in equities and equity-linked derivatives" being built ahead of significant government actions.
- The letter asserts that federal officials may be disclosing material nonpublic information for financial gain, undermining public interest and market integrity.
Alleged Trading Instances
- Trades positioned before decisions related to the Iran war and President Donald Trump's tariffs agenda.
- A report by the Financial Times noted a broker associated with Defense Secretary Pete Hegseth sought to invest millions in a defense-related fund prior to the U.S. attack on Iran.
- Prediction markets have also faced scrutiny for similar patterns.
Call for Oversight
- Warner and Schiff emphasized that these actions demand scrutiny from the SEC, DoD IG, and Congress.
- They stressed the need to protect market fairness and prevent exploitation of confidential government information.