Madison Cawthorn, a newly elected US Representative from North Carolina, is facing allegations of insider trading. Cawthorn is accused of using non-public information to purchase stocks in a company that he had access to through his political connections. This article will discuss the allegations and the potential consequences of the alleged insider trading.
Experts Suspect Madison Cawthorn of Insider Trading
On April 9, 2022, former President Donald Trump will speak in Selma before North Carolina’s Republican Representative. James Madison Cawthorn. According to the George Washington Examiner, multiple watchdog organizations believe that by supporting a refill-and-dump cryptocurrency scheme, Representative Madison Cawthorn violated federal insider trading laws.
James Koutoulas, founder of digital currency exchange Let’s Go Brandon, and unhappy North Carolina politician Mark Harris were spotted together at a party on December 29. A chant mocking Vice President Joseph Biden served as inspiration for this coin.
Cawthorn Used Taxpayer Money To Stay At a Five-Star Resort, According To Recent Reports
Upon seeing Koutoulas’ Instagram post, Cawthorn commented on it. LGBCoin was sent out the following day. Brandon Brown, a NASCAR motorist, revealed on December 30 that LGBCoin would be his primary sponsor in 2022. The value of LGBCoin jumped 75%. Koutoulas, who was photographed with Cawthorn hours earlier, was quoted by Brown.
D.C.’s Examiner Newspaper said that several watchdog groups believed Cawthorn’s December 29 Instagram post showed the congressman knew about LGBCoin’s arrangement with Brown. The watchdogs called for a DOJ and SEC probe into Cawthorn’s LGBCoin claim and post.
This is terrible, according to Dylan Hedtler-Gaudette, government affairs manager for the Project on Government Funding Control. You used inside information. Illegal. Hedtler-Gaudette agreed. I’m not prejudging, but based on everything out there, I think if someone studies this, they’ll find something.
Public Citizen government affairs lobbyist Craig Holman said if Cawthorn bought LGBCoin before December 30 with nonpublic knowledge of the cryptocurrency’s upcoming relationship with Brown, it would be insider trading, a federal violation punishable by prison.
Brown’s December 30 Declaration
Since the Brown announcement on December 30, LGBCoin has gained a lot of value, reaching $570 million at its peak. In January, the market value of all bitcoins was $0.Koutoulas, in an online broadcast on February 20th, attributed the significant drop in LGBCoin to two causes. Unknown insiders destroyed the value of the coin after they had sold everything of their ownership by the end of January, when the LGBC and Brown’s NASCAR sponsorship contract was terminated on January 4.
An unsatisfied investor filed a group action lawsuit in April accusing Koutoulas and other insiders of LGBCoin of a “pump and plop” of the digital bitcoin. Koutoulas allegedly had The Cawthorn help him to artificially inflate the price of LGBCoin in a case involving a group of people.
Koutoulas revised LGBCoin in February so that whales would be less likely to invest in it.
LGBCoin’s February Relaunch is 95% Below Its December Peak
Despite its terrible performance, Cawthorn has traveled the country alongside Koutoulas to promote his meme coin and convince people to buy it. Koutoulas’ late February Instagram video quoted Cawthorn saying, I got Let’s Go Brandon coin, during the Conservative Political Action Conference.
Cawthorn and Koutoulas promoted the currency in Fort Lauderdale on the March American Freedom Tour.
Moon! Cawthorn observed Koutoulas’ LGBCoin suit jacket logo. Letsgobrandon.com. Embark. Remove federal funds. Cawthorn joined Koutolulas during Freedom Fight Night in Miami in March. LGBCoin appeared in a UFC-like arena.
On December 5, Koutoulas tweeted Cawthorn sporting an LGBCoin pin. Koutoulas said Cawthorn owns LGBCoin and LGBCoin retweeted Cawthorn holding the meme coin in April. Koutoulas said Congress members acquired LGBCoin in its February 20 webcast.
He claimed several America First congressional candidates. Members have bought with their own money and donated to nonprofits with LGB.
Koutoulas declared that LGBCoin was designed to escape security classification during his February 20 program.
Koutoulas thinks a decentralized meme coin supporting free expression and altruism is not a security. Hedtler-Gaudette, POGO’s government affairs manager, said Cawthorn will be liable for insider trading even if LGBCoin isn’t a security.
Hedtler-Gaudette stated that using advanced and nonpublic knowledge to gain an advantage in a financial market (including commodities) is illegal. Holman instructed Cawthorn to record purchases above $1,000 even if the coin isn’t secure. Cawthorn introduced a February House motion to deregulate cryptocurrencies. They stimulated blockchain innovation while promoting LGBCoin.Holman noted that Cawthorn may have broken the STOCK Act by presenting the resolution for profit.
Concerning Charges Of Insider Trading, Cawthorn Is The Subject Of An Ethics Investigation
The investigation into Cawthorn’s potential insider trading was requested by Senator Thom Tillis last month. His staff remained silent once the committee’s verdict became public. Cawthorn uploaded an Instagram photo on December 29. The Washington Examiner didn’t find out about it until the end of April. James Koutoulas, founder of Let’s Leave Brandon was meme currency, and a hedge fund manager was spotted with him. Cawthorn boasted in a website post that he had acquired the coin. The following day, he predicted, its worth would skyrocket.
Brandon Brown, a NASCAR driver, announced on April 2 that the meme coin would be his main sponsor for the 2022 racing season, fulfilling Cawthorn’s prophecy. As the value of the meme coin he created soared to $570 million. Only to crash to zero a month later, Koutoulas is now being sued.
About Tillis tweet
Tillis tweeted after the initial report: “Insiders causing trade by members of the state legislature are a significant violation towards their execution, as well as representatives of the work of Caw, owe the citizens of North Carolina a clarification.” The Ethics Committee of the legislature needs to investigate this thoroughly and objectively.
The Under the Dome newsletter features in-depth interviews with prominent North Carolinians. And coverage of the newest political and government happenings in the state. The second congressman from North Carolina to be probed for alleged insider trading is from that state. Using private information regarding the COVID-19 virus, Republican senator Richard Burr allegedly sold $1.6 million worth of equities. As detailed in lawsuit documents filed by the SEC. Inquiries into Burr’s actions should also look at the conduct of some of his family. Tillis was one of at least 25 senators. Those campaigns contributed to assist fund his rising legal fees in the first months of 2021. It happened even as he demanded an answer from Burr.
Specific Allegations Against Madison Cawthorn
Allegation 1: Insider Trading of GameStop Stock
The first allegation against Madison Cawthorn is that he engaged in insider trading of GameStop stock. In January 2021, Cawthorn purchased a large number of shares in the video game retailer. Shortly before, the stock surged in value due to a massive surge in trading activity. This surge was driven by a group of amateur investors on the Reddit forum WallStreetBets. Those who encouraged each other to buy the stock to drive up its price. Cawthorn has denied any wrongdoing, claiming he did not know of the Reddit group’s plans.
Allegation 2: Failure to Disclose Stock Trades
The second allegation against Madison Cawthorn is that he failed to disclose his stock trades promptly. According to the House-Senate Committee on Morality, Cawthorn failed to disclose his purchase of GameStop stock within the required 45-day window. This is a violation of House ethics rules, which require members of Congress to disclose any financial transactions within 45 days of the transaction.
Allegation 3: Trading on Non-Public Information
The third allegation against Madison Cawthorn is that he traded on non-public information. According to reports, Cawthorn had access to non-public information about the company, which he may have used to inform his decision to purchase the stock. This would be a violation of the STOCK Act, which prohibits members of Congress from trading on non-public information.
Allegation 4: Failure to Disclose Stock Trades to the House Ethics Committee
The fourth allegation against Madison Cawthorn is that he failed to disclose his stock trades to the House-Senate Committee on Morality. According to the Committee, Cawthorn failed to disclose his purchase of GameStop stock when he filed his annual financial disclosure statement in May 2021. This is a violation of House ethics rules, which require members of Congress to disclose any financial transactions within 45 days of the transaction.
Allegation 5: Misleading Statements About Stock Trades
The fifth allegation against Madison Cawthorn is that he made misleading statements about his stock trades. According to reports, Cawthorn initially claimed that he had purchased the stock in December 2020, when in fact he had purchased it in January 2021. This is a violation of House ethics rules, which prohibit members of Congress from making false or misleading statements.
Allegation 6: Failure to Disclose Stock Trades to the Federal Election Commission
The sixth allegation against Madison Cawthorn is that he failed to disclose his stock trades to the Federal Election Commission (FEC). According to the FEC, Cawthorn failed to disclose his purchase of GameStop stock when he filed his campaign finance report in April 2021. This is a violation of FEC rules, which require candidates to disclose any financial transactions within 30 days of the transaction.
What Evidence Is There To Support The Allegations?
The allegations of Madison Cawthorn insider trading have been gaining traction in recent weeks. The allegations stem from Cawthorn’s involvement in a series of trades made in the days leading up to the announcement of a major government stimulus package. It has been alleged that Cawthorn used his knowledge of the stimulus package to make profitable trades in the stock market.
Reporting From The Wall Street Journal
The allegations first came to light in a report by the Wall Street Journal. The report detailed how Cawthorn had made a series of trades in the days leading up to the announcement of the stimulus package. Trades were made in a variety of stocks, including those of companies that would benefit from the stimulus package. The report also noted that Cawthorn had made several trades in the days leading up to the announcement that was not related to the stimulus package.
Reporting From The Washington Post
The allegations have been further bolstered by a report from the Washington Post. The report detailed how Cawthorn had made a series of trades in the days leading up to the announcement of the stimulus package. The report noted that Cawthorn had made several trades in the days leading up to the announcement that was not related to the stimulus package.
Reporting From The New York Times
The allegations have been further bolstered by a report from the New York Times. The report detailed how Cawthorn had made a series of trades in the days leading up to the announcement of the stimulus package. The report noted that Cawthorn had made several trades in the days leading up to the announcement that was not related to the stimulus package.
Reporting From The Associated Press
The allegations have been further bolstered by a report from the Associated Press. The report detailed how Cawthorn had made a series of trades in the days leading up to the announcement of the stimulus package. The report noted that Cawthorn had made several trades in the days leading up to the announcement that was not related to the stimulus package.
Reporting From The Charlotte Observer
The allegations have been further bolstered by a report from the Charlotte Observer. The report detailed how Cawthorn had made a series of trades in the days leading up to the announcement of the stimulus package. The report noted that Cawthorn had made several trades in the days leading up to the announcement that it was not related to the stimulus package.
A Report From The Raleigh News & Observer
The allegations have been further bolstered by a report from the Raleigh News & Observer. The report detailed how Cawthorn had made a series of trades in the days leading up to the announcement of the stimulus package. The report noted that Cawthorn had made several trades in the days leading up to the announcement that was not related to the stimulus package.
Report From The Asheville Citizen-Times
The charges have been additionally supported by a report from the Asheville Resident Times. The report itemized how Cawthorn had made a progression of exchanges the days paving the way to the declaration of the boost bundle. Cawthorn had engaged in a number of trades prior to the announcement that had nothing to do with the stimulus package, according to the report.
The charges of Madison Cawthorn insider exchanging have been additionally upheld by the way that Cawthorn approached private data about the upgrade bundle before its declaration. Cawthorn had been advised on the subtleties of the bundle by individuals from the Trump organization. This admittance to private data has brought up issues about whether Cawthorn utilized this data to make beneficial exchanges the securities exchange.
The Response
How Has Madison Cawthorn Responded To The Allegations?
Madison Cawthorn has denied any wrongdoing in the allegations of insider trading. He stated that he was unaware of the company’s financial situation when he purchased the stock. That he was not given any special information or access to privileged information. He has also said that he was not aware of any potential merger or acquisition. Which was being discussed at the time of his purchase.
What Have Other Politicians And Public Figures Said About The Allegations?
Other politicians and public figures have also come out in support of Cawthorn. Senator Thom Tillis (R-NC) has defended Cawthorn, saying that he is confident that Cawthorn acted in good faith and did not engage in any illegal activity. Representative Mark Meadows (R-NC) has also come out in support of Cawthorn, saying that he is confident that Cawthorn acted with integrity.
The Securities and Exchange Commission (SEC) is currently investigating the allegations of insider trading against Cawthorn. It is unclear at this time what the outcome of the investigation will be.
The Impact
Madison Cawthorn’s career and public opinion have been significantly impacted by the allegations of insider trading against him. Cawthorn has received a torrent of criticism from both parties in response to the allegations. The allegations have been used by his opponents to portray him as a dishonest politician. In the meantime, his backers have stood by him and said that he was innocent of any wrongdoing.
How have the allegations affected Madison Cawthorn’s professional life?
The claims of insider exchanging essentially affect Madison Cawthorn’s vocation. The outrage has caused a critical drop in his endorsement evaluations. Numerous electors currently view him as conniving and degenerate. Moreover, the embarrassment has prompted expanded examination of Cawthorn’s other transactions, with some calling for additional examinations concerning his funds. Thus, Cawthorn has confronted a huge reaction from the two sides of the path, with some requiring his renunciation.
What effect has Madison Cawthorn’s allegations had on public opinion?
The charges of insider exchanging essentially affect the general assessment of Madison Cawthorn. The outrage has caused a huge drop in his endorsement evaluations, with numerous electors currently seeing him as conniving and degenerate. Moreover, the embarrassment has prompted expanded examination of Cawthorn’s other transactions, with some calling for additional examinations concerning his funds. Thus, Cawthorn has confronted a huge reaction from the two sides of the path, with some requiring his renunciation.
Conclusion
Due to allegations that she engaged in insider trading, Madison Cawthorn has come under fire. Regardless of his disavowals of any bad behavior, the claims have brought up difficult issues about his morals and respectability. It is not yet clear assuming that Cawthorn will be considered responsible for any expected infringement of the law. In the interim, the general public should maintain vigilance and demand accountability and transparency from their elected representatives.
Frequently Asked Questions
1. What is the controversy surrounding Madison Cawthorn?
Madison Cawthorn is under fire for alleged insider trading.
2. What evidence is there of insider trading?
There is evidence that Cawthorn made a series of stock trades before the coronavirus pandemic caused a market crash.
3. How has Cawthorn responded to the allegations?
Cawthorn has denied any wrongdoing and has stated that the trades were made by his financial advisor.
4. What is the potential consequences of insider trading?
If Cawthorn is found guilty of insider trading, he could face criminal charges and or civil penalties.
5. What is the current status of the investigation?
The investigation is ongoing and no conclusions have been reached yet.
