Rep. Donna Shalala (D-FL) violated federal law when she sold stocks while preparing to enter Congress in 2019, the Miami Herald reports. Shalala, who served as secretary of health and human services under President Bill Clinton and now represents for Florida’s 27th Congressional District, failed to disclose 2019 stock sales as required under the 2012 STOCK Act, regulation meant to prevent congressional insider trading. Shalala said she had been in the process of placing her assets into a blind trust when the trades were made. The trust still has not been finalized, the Herald reports, so the disclosures were still required. Shalala was the sole Democrat selected to oversee $500 billion designated for coronavirus stimulus payments to large businesses, but her failure to abide by financial ethics rules raises questions about her ability to do so. The appointment led her to declare that she owned stock in some businesses that may benefit from the bailout. Shalala admitted her mistake to the Herald, calling it “a misunderstanding,” and apologized. It’s unclear if she will suffer any penalty.
