- July sale of the gaming stock was to her ex-husband, the CEO of the casino operator
- The Las Vegas congresswoman is selling individual stocks, moving into diversified index and mutual funds
Rep. Susie Lee’s (D-NV) office clarified a July transaction involving shares of Full House Resorts (NASDAQ: FLL), the regional casino operator of which her ex-husband, Dan Lee, is the chief executive officer.
In an email to Casino.org, a spokesperson for the Las Vegas-area congresswoman said the politician is in the process of selling individual securities she received as part of her divorce settlement. In a separate message, Full House CEO Lee said the July 22 transaction involving $500,000 to $1 million worth of the gaming stock was a planned sale by the politician to the executive.
Representative Lee is currently in the process of transferring individual holdings she received following her divorce — including shares of Full House Resorts, Inc. — into ETFs, index funds, and mutual funds, going above and beyond what’s required of her by law and ethics rules,” according to the statement.
The July 22 transaction between the representative and her former spouse raised eyebrows among observers of politicians’ stock market moves because it occurred less than three weeks before Full House shares tumbled on a tepid second-quarter earnings report. That scrutiny was born out of the now provided clarity that the politician wasn’t dumping shares on the open market and that her ex-husband was the buyer, signaling long-term confidence in the company he runs.
Rep. Lee Smart to Divest Individual Stocks
Lee’s decision to get out of individual stocks and move her investments into diversified funds is smart because market participants and voters applying increasing scrutiny to members of both parties transacting in individual stocks.
Some elected members of both parties have established uncanny knacks for buying and selling stocks in advance of significant market-moving events, paving the way for their personal fortunes to balloon in the process. That’s stoked speculation about insider trading and criticism from voters that politicians are leveraging their offices for financial gain.
For her part, Lee wasn’t an active buyer or seller of individual stocks prior to her divorce being finalized.
“Prior to beginning the divestment process of holdings she received from her divorce, Rep. Lee had never directed an individual stock trade, and she strongly supports a ban on Members of Congress directing trades of individual stocks,” said the spokesperson.
Gaming Stocks not Among Pols’ Favorites
Politicians aren’t shy about trading stocks, but aside from a few “interesting” transactions here and there, members of Congress don’t flock to gaming equities — a bipartisan theme extending even to delegations from casino-heavy states.
Likewise, violations of the STOCK Act, which requires members of Congress to disclose within 45 days purchases and sales, are a bipartisan affair. This year, seven Democrats and eight Republicans have run afoul of the STOCK Act. Susie Lee isn’t not among those Democrats.
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