WASHINGTON (AP) – Financial files obtained by The Associated Press show that a multimillionaire, first-term Florida congressman flipped shares in a solar company the same day he acquired them in an initial public offering. That happened despite a federal law that generally prohibits members of Congress from participating in IPOs.
Rep. Curt Clawson is worth an estimated $26 million. He made a profit of less than $700 on the trade of SolarEdge Technologies Inc. of Fremont, California. Clawson’s spokesman, David James, says the trading was lawful.
The 2012 Stock Act bans lawmakers and staff members from buying stock during initial offerings unless the same opportunity is available to members of the public generally. Investment banks and brokerages traditionally reserve IPOs for their favored customers.