AP: Congressional Democrat Uses the Covid-19 Pandemic to Turn a Profit

News broke today that Tom Malinowski — a New Jersey Democrat — bought and sold as much as $3.2 million dollars in stock throughout 2020 that he did not properly disclose, including $1 million of which was medical and tech stock of companies that had a direct stake in the Covid-19 pandemic. An ethics lawyer and former Democrat candidate for Senate, Richard Painter, said, “It’s a huge conflict of interest and not an acceptable situation.” Additionally, Malinowski engaged in short selling of stocks, a controversial practice the same ethics lawyer called “just nuts” for a member of congress to engage in.

Even under normal circumstances, failing to file disclosure reports required by law would be a breach of the public trust. But hypocritically profiting off the pandemic makes this violation even more egregious. In April 2020, Malinowski said, “This is not the time for anybody to be profiting off of selling ventilators, vaccines, drugs, treatments, PPE, anywhere in the world.”

Companies Malinowski bought and sold include Merck, a drug maker, and TFF Pharmaceuticals, which is developing a Covid-19 antibody treatment. Malinowski also benefited from “exceptional timing” when he sold stock in Kimco Realty, which operates shopping centers, then bought back even more stock after the company’s share price was cut in half. Since he bought back the Kimco Realty stock, its value has increased by 50%. 

Now, two complaints have been filed against Malinowski with the Office of Congressional Ethics.

AP: When millions were out of work and markets were hemorrhaging, Malinowski snapped up securities at bargain prices — profiting when valuations recovered. In other cases, he sold shares before they fell substantially, according to the AP’s analysis of a list of trades that his office said he made in 2020.

He also engaged in the controversial practice of short-selling stocks, placing bets that the values of specific businesses would decline at a time when many companies were pleading with the government for a financial lifeline.

Bottom Line: A Congressional Democrat profited off the pandemic, failed to disclose his activity and engaged in controversial trading practices that allowed him to benefit from the pain inflicted on American businesses and workers by the pandemic.