H.R. 10066: Stop Corrupt Trading Act

This bill would make it a federal crime to use certain nonpublic information tied to the President or Vice President for financial gain.

What counts as covered information

The bill defines nonpublic information as information a President or Vice President learns because of their official role that is not available to the general public. This includes information that is:

• normally exempt from public disclosure under federal law,
• marked confidential, or
• not yet shared with the public and not available on request.

It also covers statements or communications released through an application programming interface (API) or other channels if they are not made available to the general public on equal terms.

Who is covered

The bill applies directly to the President and Vice President. It also applies to covered entities, meaning businesses or other organizations that are controlled by the President or Vice President, or in which they own at least 5% of the equity, profits, or revenue interests. It also reaches immediate family-controlled entities in some cases.

What conduct would be prohibited

The bill would prohibit:

• a covered person or covered entity from selling or exchanging nonpublic information for financial benefit;
• any person from acquiring, purchasing, selling, or exchanging nonpublic information for financial benefit.

In simple terms, it is aimed at stopping the buying or selling of confidential government-related information for money.

Penalties

Violations could lead to both criminal and civil consequences.

• Criminal penalties: A person could be fined up to twice the value of the transaction. In some cases, they could also face up to 5 years in prison.
• Forfeiture: A convicted person would have to give up property or money obtained from the offense.
• Civil penalties: The Attorney General could sue to recover profits and impose a civil penalty of up to the greater of $250,000 or three times the gain from the conduct.
• Other remedies: Courts could also order injunctions or place property in trust for the United States.

Enforcement

The Attorney General would be authorized to bring civil cases even if no criminal case is filed. The Office of Government Ethics would be required to refer credible evidence of violations to the Attorney General and notify the Judiciary Committees in both the House and Senate.

Time limit for civil cases

Civil enforcement actions would generally have to be filed within 6 years of the conduct, but that clock would pause while the President or Vice President involved remains in office.

Relevant Companies

None found