After Donna Shalala was appointed to oversee $500 billion in corporate relief because of coronavirus, Shalala admitted that she broke the law by failing to disclose over 500 stock trades of several companies that could benefit from COVID assistance.

Donna Shalala’s stock mistakes came to light after she was appointed to the Congressional Oversight Commission, designed to oversee coronavirus relief:

• Shalala’s stock mistakes were reported just days after being appointed to the Congressional Oversight Commission. Just days after Speaker appointed Shalala to the Congressional Oversight Commission — an entity created as part of a recent multitrillion-dollar coronavirus relief package — the Herald reported Shalala did not disclose her 2019 stock sales. (Chris Marquette, “What will come of Donna Shalala stock scandal,” Roll Call, 4/24/2020)

Shalala was on the committee overseeing $500 billion in taxpayer money being used for coronavirus-related payouts to large businesses:

• Shalala sat the on the commission overseeing $500 billion in taxpayer money for coronavirus relief. “Miami Democratic Rep. Donna Shalala, the lone House Democrat on the committee set up to oversee $500 billion in taxpayer money being used for coronavirus-related payouts to large businesses, violated federal law when she failed to disclose stock sales while serving in Congress.” (Alex Daugherty, “Donna Shalala, lone Democrat overseeing $500B virus fund, didn’t disclose 2019 stock sales,” Tampa Bay Times, 4/22/20)

Donna Shalala sold a variety of stocks throughout 2019, but failed to publicly report the transactions, violating federal law through the STOCK Act:

• Shalala sold a variety of stocks in 2019, but failed to publicly report the transactions, which is a violation of the 2012 STOCK Act. “Shalala told the on Monday she sold a variety of stocks throughout 2019 to eliminate any potential conflicts of interest after she was elected to Congress in November 2018. But the transactions were not publicly reported as required by the STOCK Act, a 2012 law that prohibits members of Congress and their employees from using private information gleaned from their official positions for personal benefit and requires them to report stock sales and purchases within 45 days.” (Alex Daugherty, “Donna Shalala failed to disclose stock sales in 2019 in violation of federal law,” Miami Herald, 4/21/2020)

o Federal law requires Members of Congress to report any stock transactions within 45 days. “Nevertheless, federal law requires elected officials to report any stock transactions within 45 days. The law is designed to provide greater transparency and discourage House members from using information they are privy to for their own financial benefit.” (Jim DeFede, “Congresswoman Donna Shalala Admits Mistake In Stock Sales & Apologizes,” CBS Miami, 4/22/20)

• Shalala claimed she was in the process of setting up a blind trust, but it hasn’t been finalized. “Shalala, the former head of the Department of Health and Human Services under President , is in the process of setting up a blind trust for her assets, and transactions made within a blind trust without a lawmaker’s knowledge are not required to be disclosed. But the blind trust isn’t finalized, meaning any transactions would need to be made public.” (Alex Daugherty, “Donna Shalala failed to disclose stock sales in 2019 in violation of federal law,” Miami Herald, 4/21/2020)

• Shalala’s team said there was a misunderstanding about her duty to file a periodic transaction report. “‘She had a misunderstanding about the periodic transaction report process and her need to report the sale of these stocks while preparing a blind trust,’ Shalala spokesperson Carlos Condarco said. ‘As a new member with a broker and attorney who were not familiar with the congressional disclosure rules, there was a misunderstanding.’” (Alex Daugherty, “Donna Shalala failed to disclose stock sales in 2019 in violation of federal law,” Miami Herald, 4/21/2020)

• Once her mistake came to light, Shalala released a 62-page report that included 556 transactions. “A 62-page report from Shalala made public Tuesday by the House Clerk details 556 stock transactions made by the congresswoman in 2019. She did not make any stock transactions in 2020.” (Alex Daugherty, “Donna Shalala, on coronavirus oversight board, pays fine for not revealing stock sales,”The Miami Herald, 4/28/2020)

Donna Shalala admitted that she knew what the law was and was the only one responsible for the violation:

• Shalala admitted that she knew what the law was, and that she was the only one responsible for the violation. “Miami Congresswoman Donna Shalala admits she made a mistake by failing to report at least a half dozen stock sales she made after being elected to the House in 2018. ‘It was my mistake and I take full responsibility,’ she told CBS Miami, in her first interview since the transactions became public.” (Jim DeFede, “Congresswoman Donna Shalala Admits Mistake In Stock Sales & Apologizes,” CBS Miami, 4/22/20)

• VIDEO: “Donna Shalala Broke the Law and Can’t Be Trusted” (NRCC Communications, “Donna Shalala Broke the Law and Can’t Be Trusted,” Youtube, 5/6/20)

An Ethics investigation never took place; instead, Shalala had to pay a $1,200 fine, $200 for each of her six violations:

• It is unlikely that the House Ethics Committee will investigate Shalala. “The House Ethics Committee, which did not comment, is unlikely to undertake an investigation into Shalala, unless evidence emerges that there was a willful intent not to file the reports. The reports are required by the 2012 STOCK Act for all trade executions of individual securities within 45 days of the trade.” (Chris Marquette, “What will come of Donna Shalala stock scandal,” Roll Call, 4/24/2020)

• Knowingly and willfully failing to file this report could result in up to one year in prison and a $59,000 fine. “Trades involving widely held investment funds, such as mutual funds or exchange-traded funds (ETFs), need not be included in periodic transaction report filings. If a member were to “knowingly and willfully” fail to file such a report, they could face a maximum penalty of up to one year in prison and a $59,000 fine.” (Chris Marquette, “What will come of Donna Shalala stock scandal,” Roll Call, 4/24/2020)

• Shalala’s team said the fault lies in her financial advisor, who was hospitalized for COVID-19. “There is no indication Shalala intentionally failed to file; her spokesperson, Carlos Condarco, said her financial adviser is in the hospital with COVID-19.” (Chris Marquette, “What will come of Donna Shalala stock scandal,” Roll Call, 4/24/2020)

• Shalala will pay a $1,200 fine for her six violations. “Miami Rep. Donna Shalala, who admitted last week that she broke federal law requiring the disclosure of stock sales, will pay a $1,200 fine for six violations because she failed to report hundreds of transactions made last year by a broker setting up a blind trust, according to the Democratic congresswoman’s office and a newly filed disclosure published Tuesday.” (Alex Daugherty, “Donna Shalala, on coronavirus oversight board, pays fine for not revealing stock sales,” The Miami Herald, 4/28/2020)

Based on a 2019 financial disclosure report, Shalala held stock in several companies that could benefit from COVID relief money:

• Shalala’s stock would like be a conflict of interest, as she held stock in several companies that would benefit from COVID relief funds. “According to her financial disclosure report — filed in May of 2019 — Shalala held stock in several companies that could benefit significantly from the COVID relief money she is overseeing, including Alaska Air Group, Inc., and Spirit Aerosystems Holdings, Inc. Because she has yet to file a periodic transaction report, it is impossible to independently verify that she has, in fact, sold these off. Shalala’s spokesperson said they are working to submit the reports ‘as soon as possible.’” (Chris Marquette, “What will come of Donna Shalala stock scandal,” Roll Call, 4/24/2020)

Several groups called for Speaker Nancy Pelosi to withdraw her nomination of Shalala to the Congressional Oversight Commission, yet despite her mishaps, Shalala still believed she was the right person to serve on the Commission:

• Several groups have called for Speaker Nancy Pelosi to withdraw her nomination of Shalala to the Congressional Oversight Commission. “Advocacy groups, including the Project on Government Oversight and the left-leaning group Demand Progress, have called for Pelosi to withdraw her nomination of Shalala to the Congressional Oversight Commission. Americans for Public Trust, an ethics watchdog group that is led by a former National Republican Congressional Committee employee, filed a complaint with the Office of Congressional Ethics Thursday. Another right-leaning group, Foundation for Accountability and Civic Trust, also filed a complaint with OCE regarding Shalala.” (Chris Marquette, “What will come of Donna Shalala stock scandal,” Roll Call, 4/24/2020)

• Donna Shalala believes she is still the best person to serve on the Oversight committee. “Yes, I think I’m the right person for this. I’ve had deep experience. No other Member has run multibillion-dollar institutions, both public and private, has sat on corporate boards, fortune 500 corporate boards, and I have a Ph.D. that involves both politics and economics. And I started my career with Big Mac, with Felix Rohatyn solving the City financial crisis. I was actually the treasurer. My signature is on all those billion-dollar settlements and individual accounts that we did during that time to save New York City.” (MSNBC’s “Live with Stephanie Ruhle,” 5/6/2020)