Lamborn bought stock in company at the center of a congressional insider-trading scandal
U.S. Rep. Doug Lamborn of Colorado Springs is named in a Daily Beast article this week about another Republican congressman’s potential conflicts of interests in an international stock deal.
Rep. Chris Collins of New York could have to lean on a loophole in the law on insider trading that bars certain investment into U.S. companies by members of Congress, but not international trading.
“Congressman Lamborn purchased the stock on the open market, at fair market value, after all the media discussion about the company,” said his spokesman, Jarred Rego. “Additionally, Congressman Lamborn has not made money on this investment.”
As insider trading goes, Lamborn would be a really bad example of it.
Unlike Collins, Lamborn isn’t in a position, beyond one vote in Congress, to help the Australian pharmaceutical company Innate Immunotherapeutics gain entry into the U.S. market.
Heck, Lamborn wasn’t one of 230 co-sponsors of the 21st Century Cures Act that would make entry even possible, and he was one of just 77 House members who voted against it.
Collins, whose stock in the company is worth $22 million, wrote a provision into the bill making it easier for drugmakers such as Innate to get investigative drug approval, which the company identified as its best avenue into the U.S. market, according to the Daily Beast.
In January The Motley Fool reported the company’s stock was inexplicably going “gangbusters.”
“Evidently with multiple hurdles to jump, no revenues, and significant costs ahead, it looks an extremely speculative investment prospect and one to watch from the sidelines in my opinion,” the Fool wrote.
“Of course if it does ever get approval for its drugs it will be great news for potential patients and the company’s investors, although that seems a long way off for now.”
According to the Daily Beast, Lamborn is one of five members of Congress who collectively bought $356,000 in shares of Innate.
Reps. Billy Long of Missouri, and Markwayne Mullin of Oklahoma serve alongside Collins on a subcommittee overseeing the FDA approval process, which is critical to Innate.
Collins’ shares represent 16.5 percent of the company, and he serves on its board. His children, chief of staff and “a score of campaign donors” own shares of the company, according to the Daily Beast.
Lamborn, a lawyer with an undergraduate degree in journalism, isn’t a financial wheeler-dealer by Washington standards, or even El Paso County standards.
The website InsideGov said Lamborn’s net worth in 2014 was about $178,503, which is 83 percent less than the average member of Congress or 0.05 percent of Rep. Jared Polis’ net worth of $388 million.