What To Know About Rand Paul Failing To Disclose Gilead Stock Purchase For 16 Months

Stock transactions by members of the U.S. Congress and their spouses have been a hot topic over the last several years. A transaction disclosed late Wednesday is drawing heavy scrutiny from the public.

What Happened: Sen. Rand Paul (R-KY) disclosed that his wife purchased a $1,000 to $15,000 stake in Gilead Sciences GILD back in February 2020. The disclosure was reported by The Washington Post.

Gilead is the maker of remdesivir, an antiviral drug for the treatment of COVID-19. The purchase by Rand’s wife Kelley came before the potential threat of the COVID-19 pandemic was announced to the public.

Remdesivir would become a staple treatment for hospitals for those infected with COVID-19 around the world and was later approved by the FDA. 

Paul has served as a Republican U.S. senator for Kentucky since 2011.

Related Link: Congresstrading Highlights Changes That Could Help Pelosi's New Trade And Crypto Disclosure 

Why It’s Important: The STOCK Act was passed in 2012 to limit the potential of insider trading by members of Congress. Representatives and Senators have up to 45 days to announce trade disclosures.

“Last year Dr. Paul completed the reporting form for an investment made by his wife using her own earnings, an investment which she lost money on,” Paul’s spokesperson Kelsey Cooper said.

The representative blames a form not being transmitted for the lack of proper disclosure.

“The senator ought to have an explanation for the trade and more importantly, why it took him almost a year and a half to discover it from his wife,” Duke University law professor James Cox told The Washington Post.

Rand Paul has been one of the most vocal members of Congress in a battle against Dr. Anthony Fauci, who has provided guidance for COVID-19 health protocols in the U.S. Paul was the first member of the U.S. Senate to test positive for COVID-19. 

Paul was recently suspended from Alphabet Inc's GOOGGOOGL YouTube over a video claiming masks were ineffective against fighting COVID-19. Paul’s suspension is for seven days.

Other members of Congress have faced scrutiny over stock transactions. Rep. Blake Moore was recently fined for not disclosing a stock purchase in a timely manner.

Transactions made by Speaker of the House Nancy Pelosi and her husband have come prior to companies receiving boosts from bills passed by Congress and come under scrutiny.

GILD Price Action: Shares of Gilead are trading flat at $69.93.

Photo: Gage Skidmore, Flickr