Sen. Mark Warner (D-Va.) and Sen. Adam Schiff (D-Calif.) have demanded an investigation into potential insider trading within the government.
The senators sent letters to the Securities and Exchange Commission (SEC) Chairman Paul Atkins and the Department of Defense (DoD) Inspector General Platte Moring, seeking answers over suspicious equity positions taken before significant policy announcements.
The senators pointed to instances of “large positions in equities and equity-linked derivatives” being established before significant policy announcements, such as the Iran war and President Donald Trump‘s tariff agenda. They suggested that these instances indicate “federal officials are disclosing material nonpublic information for financial gain.”
Warner and Schiff raised concerns that someone linked to the Defense Secretary, Pete Hegseth, may have used non-public information for trading, warning of potential national security risks.
The senators warned that uneven distribution of nonpublic details ahead of government announcements could erode investor confidence and market integrity.
White House did not immediately respond to Benzinga’s request for comments.
Calls Grow To Probe Suspicious Trades
This call for investigation comes in the wake of a series of events that have raised eyebrows. The Department of Defense had previously denied allegations of Hegseth’s broker attempting to move millions into defense stocks just weeks before the U.S. launched military operations against Iran.
Iran’s Foreign Minister Seyed Abbas Araghchi had also criticized Hegseth for allegedly trying to profit from the conflict. Meanwhile, Iran’s Parliament Speaker Mohammad Bagher Ghalibaf threatened to expose alleged Wall Street figures he claims are influencing U.S. policy toward Tehran through a coordinated financial campaign.
Furthermore, former White House personnel, Anthony Scaramucci, alleged market manipulation tied to Trump, involving suspicious trading activity before the president announced a moratorium on Iran strikes.
Last week, another report suggested that traders placed about $580 million in oil futures bets minutes before Trump posted about “productive” Iran talks, raising questions about timing, as per the Financial Times calculation.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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