WASHINGTON — U.S. Rep. Pat Fallon, R-Texas, could be in violation of House ethics rules for late disclosures of stock trades worth anywhere from $7.8 million to $17.53 million, as first reported by
According to Insider’s analysis of Fallon’s congressional records, Fallon failed to properly disclose the full extent of dozens of stock trades made earlier this year. From mid-January to mid-April, Fallon made 93 stock trades, but didn’t disclose them until one to four months later than the congressionally mandated deadlines.
The 2013 STOCK Act, which tightened financial reporting guidelines and prevents insider trading among lawmakers, requires full public disclosures of certain investment transactions over $1,000. Members are required to report stock trades within 30 to 45 days after the transaction.
If Fallon’s case is taken up by the House Committee on Ethics, he could face a penalty. But any fines would likely be low, around $200, based on prior disclosure violations.
Fallon’s spokesperson Luke Bell told Insider that the first-term congressman was unfamiliar with filing requirements.
“As a freshman member, Congressman Fallon was unfamiliar with how frequently members of Congress are required to file financial disclosures, having served in other public offices where the requirements are different,” Ball said in an email. “Upon learning of the requirement, he immediately filed a disclosure with the appropriate entities. That disclosure is available for the public to review. Congressman Fallon looks forward to remaining in compliance with future filings.”
All new members, officers, and employees must receive ethics training within 60 days of their start date, according to the Ethics Committee. Training covers financial disclosure rules. Bell confirmed that Fallon had taken part in those training sessions.
Fallon traded shares in 14 companies, including Apple, American Airlines, Amazon, Chevron and Walt Disney. He also bought anywhere from $300,000 to $750,000 worth of stock in Boeing, the aviation and defense contracting giant. As Insider pointed out, Fallon is a member of the House Armed Services Committee, which has long provided oversight of the government’s defense contractors.
Fallon isn’t the only Texas member to run afoul of disclosure laws. Republican Rep. Dan Crenshaw came under scrutiny in March for similarly failing to disclose stock trades within the federally mandated 45 days. He’d made five transactions the previous year during the start of the pandemic and reported them in December, months afterward.
