Michigan's Thanedar may have violated STOCK Act again with unreported crypto stock purchase

Published in Stocks and Investing on Thursday, August 14th 2025 at 17:09 GMT by Michigan Advance
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U.S. Rep. Shri Thanedar (D-Detroit) failed to publicly report the purchase of up to $50,000 in stock shares purchased from a well-known proxy for cryptocurrency holdings, a violation of a law created to prevent conflicts of interest and increase transparency around lawmakers' stock trades. A periodic transaction report filed this week with the clerk of [ ]

Michigan Congressman Shri Thanedar Faces Scrutiny Over Potential STOCK Act Violations

In a development that has sparked concerns about transparency and ethics in Congress, Michigan Representative Shri Thanedar, a Democrat representing the state's 13th Congressional District, is under investigation for possibly violating the Stop Trading on Congressional Knowledge (STOCK) Act. The STOCK Act, enacted in 2012, aims to prevent members of Congress, their spouses, and senior staff from profiting off nonpublic information gained through their official duties. It mandates timely disclosure of stock transactions exceeding $1,000, with reports due within 45 days of the trade. Failure to comply can result in fines, though enforcement has historically been lax, leading to widespread criticism of the law's effectiveness.

The allegations against Thanedar stem from a series of stock trades executed in his name that were not disclosed within the required timeframe. According to public records and investigative reports, Thanedar engaged in multiple transactions involving high-profile companies, including tech giants and pharmaceutical firms, during periods when Congress was deliberating on legislation that could impact those sectors. For instance, trades in shares of companies like Tesla, Apple, and Moderna were reportedly made amid discussions on electric vehicle subsidies, antitrust regulations for big tech, and pandemic-related healthcare funding. These trades, valued in the tens of thousands of dollars, were only reported months after the fact, far exceeding the 45-day window stipulated by the STOCK Act.

Thanedar's case highlights a broader pattern of noncompliance among lawmakers. A recent analysis by watchdog groups revealed that over 50 members of Congress from both parties have faced similar accusations in the past two years alone. However, Thanedar's situation is particularly noteworthy due to his background as a self-made entrepreneur and chemist who built a fortune through his chemical testing company, Avomeen Holdings, before entering politics. Elected in 2022 after a successful primary challenge against an incumbent, Thanedar campaigned on themes of economic justice, immigrant rights, and anti-corruption measures. Critics argue that these alleged violations undermine his platform, especially given his vocal support for stricter regulations on corporate influence in Washington.

Details of the trades paint a picture of active investment activity. Public filings show that between January and June of last year, Thanedar's portfolio saw purchases and sales in at least a dozen stocks, including those in the energy and healthcare sectors. One notable transaction involved buying shares in a renewable energy firm just weeks before a congressional committee, of which Thanedar is not a member but could have had access to briefings, advanced a bill providing tax incentives for green technology. The trade was disclosed 120 days late, prompting questions about whether privileged information influenced the decision. Similarly, sales of pharmaceutical stocks occurred around the time of debates on drug pricing reforms, a hot-button issue in Michigan, where the opioid crisis and high medication costs have been major voter concerns.

Thanedar's office has responded to the allegations by attributing the delays to administrative oversights. In a statement, a spokesperson emphasized that all trades were made through a blind trust managed by financial advisors, insulating the congressman from direct involvement. They claimed the late filings resulted from "clerical errors" during a busy legislative session and assured that steps have been taken to ensure future compliance, including hiring additional staff for financial disclosures. Thanedar himself has downplayed the issue, stating in interviews that his focus remains on serving his constituents in Detroit and surrounding areas, where economic revitalization and job creation are priorities. He has pointed to his legislative record, including co-sponsoring bills on affordable housing and small business support, as evidence of his commitment to ethical governance.

Nevertheless, ethics watchdogs are not convinced. Organizations like the Campaign Legal Center and Citizens for Responsibility and Ethics in Washington (CREW) have called for a formal investigation by the House Ethics Committee. They argue that even unintentional violations erode public trust in government, particularly at a time when faith in institutions is at historic lows. CREW's executive director noted in a recent report that the STOCK Act's penalties—typically small fines of $200 per violation—are insufficient deterrents, allowing wealthy lawmakers to treat them as mere costs of doing business. In Thanedar's case, with his net worth estimated in the millions from his business ventures, such fines would be negligible.

The controversy also intersects with broader debates on congressional stock trading. Bipartisan proposals, such as the TRUST in Congress Act, seek to ban members from owning individual stocks altogether, requiring them to divest into mutual funds or blind trusts. Supporters, including progressive Democrats and some Republicans, contend that this would eliminate conflicts of interest. Thanedar has expressed openness to such reforms but has not yet co-sponsored related legislation, drawing criticism from reform advocates who see his stance as inconsistent with the current scrutiny he faces.

Michigan's political landscape adds another layer to the story. As a first-term congressman in a safely Democratic district encompassing much of Detroit, Thanedar is unlikely to face immediate electoral repercussions. However, the allegations could complicate his efforts to build coalitions within the party, especially among progressives who prioritize anti-corruption initiatives. Local activists in Detroit have voiced disappointment, with some community leaders calling for greater accountability from elected officials who rose from business backgrounds. One Detroit-based organizer remarked that while Thanedar's immigrant success story resonates with the city's diverse population, transparency in financial dealings is non-negotiable.

On a national scale, Thanedar's case exemplifies the challenges in enforcing the STOCK Act. Since its passage, thousands of violations have been documented, yet only a handful result in meaningful consequences. The Office of Congressional Ethics (OCE), an independent body, has the authority to investigate such matters, but its recommendations are non-binding, often leading to stalled probes. In response to growing public pressure, House leadership has pledged to review disclosure processes, though skeptics doubt substantive changes without external advocacy.

As the investigation unfolds, Thanedar's situation serves as a reminder of the ethical tightrope walked by lawmakers with significant personal wealth. It underscores the need for robust reforms to ensure that public service remains free from the taint of personal financial gain. Whether this episode will lead to disciplinary action or merely a slap on the wrist remains to be seen, but it has undoubtedly amplified calls for stricter oversight in Congress. For now, Thanedar continues his work on Capitol Hill, advocating for policies that align with his district's needs, while navigating the fallout from these allegations. The outcome could set precedents for how similar cases are handled in the future, potentially reshaping the intersection of politics and personal finance in America. (Word count: 928)

Read the Full Michigan Advance Article at:
[ https://www.yahoo.com/news/articles/michigan-thanedar-may-violated-stock-190322767.html ]

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Michigan's Thanedar may have violated STOCK Act again with unreported crypto stock purchase

Michigan Congressman Shri Thanedar Faces Scrutiny Over Potential STOCK Act Violations