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Congressman Luis Gutierrez

Representing the 4th District of Illinois

Trump Billionaire Pal Carl Icahn Should Be Investigated For Insider Trading, Gutiérrez Demands Of SEC

March 8, 2018
Press Release
“[I]f I were to dump a stock a week before Congress took action that would impact that stock’s price, I would most certainly be investigated, resulting in possible sanctions, removal from office or jail time.”

Washington, DC – Rep. Luis V. Gutiérrez (D-IL) is calling for a federal investigation into the suspiciously timed sale of stock by Trump insider and former advisor Carl Icahn just before President Trump announced steel and aluminum tariffs that caused the value of those stocks to plummet. 

PDF icon030818 SEC Chairman Jay Clayton re Carl Icahn.pdf

In a letter to Jay Clayton, Chairman of the Securities and Exchange Commission (SEC), Rep. Gutiérrez said:                                                                       

I write to request that you and your agency immediately investigate possible illegal insider trading by Mr. Carl Icahn, a longtime friend of President Donald Trump, who according to his SEC filings sold $31.3 million worth of stock in a company heavily dependent on steel just days before the President announced plans to impose import tariffs on steel and aluminum.

The billionaire Icahn disclosed that he sold nearly 1 million shares of Manitowoc Company, Inc., a company heavily dependent on steel that manufactures cranes and other heavy equipment.  Icahn has said that the sale was just a coincidence, but Rep. Gutiérrez isn’t buying this multimillion dollar coincidence theory, especially given the fact that Icahn was forced out of his advisory role with Trump’s White House over potential conflicts of interest. 

The announcement of tariffs on the heels of Mr. Icahn’s stock sale is highly suspicious.  The close relationship between the President and Mr. Icahn adds to the appearance of wrongdoing.

Rep. Gutiérrez said that as a Member of the House of Representatives, he not only has to disclose any stock transactions in a timely manner and that he would be immediately investigated if such a beneficial and well-timed stock sale took place that appeared to be based on information not available to the public.  He wrote:

[I]f I were to dump a stock a week before Congress took action that would impact that stock’s price, I would most certainly be investigated resulting, in possible sanctions, removal from office or jail time.

He concludes:

It is hard to believe Mr. Icahn’s actions with regard to unloading voluminous shares of Manitowoc stock right before the President’s is just a coincidence.  It undoubtedly warrants a federal investigation.

Rep. Luis V. Gutiérrez is a Member of the Judiciary Committee and a former Member and Subcommittee Chairman of the House Financial Services Committee.

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