An Indiana University expert on securities law will testify before a congressional committee today about pending legislation designed to prohibit insider trading by legislators and their staffers.
Donna Nagy is a professor at the Maurer School of Law in Bloomington. Nagy will testify before the House Committee on Financial Services regarding the Stop Trading on Congressional Knowledge, or STOCK, Act. Nagy will testify that anti-fraud provisions in the federal securities laws and the federal mail and wire fraud statutes apply equally to everyone, including Congress.
She also says the verbage in the STOCK Act leaves a lot of loopholes allowing for insider trading that existing laws already cover. Nagy presented similar testimony to the Senate Committee on Homeland Security and Governmental Affairs on Dec. 1.