Democrat Sherrod Brown Dumped Stock After Meeting Company’s CFO

Ohio Democrat Sherrod Brown dumped $15,000 in stock after meeting with the company’s CFO, a curiously timed move that has resurfaced as he aims to recapture a Senate seat in next week’s midterm election against Republican Sen. Jon Husted.

In June 2010, Brown and several other senators met with the CFO of Applied Materials and other executives on potential legislation to combat global warming by instituting cap-and-trade policies, the Hill reported. The meeting also included CEOs of General Electric, Dow Corning, and Honeywell International.

One month later, the Emily C. Brown Trust, of which the then-senator was a trustee, sold stock in Applied Materials valued at up to $15,000 — shortly before the company announced a major restructuring effort and laid off 500 employees. The company’s stock subsequently fell 12 percent from July 21 through August 12, and by August 31 it was down 17 percent. The company’s third-quarter earnings filing showed the restructuring effort cost the company $405 million.

Brown later admitted to failing to report a transaction on his Senate financial disclosure — the sale of Applied Materials stock.

In a letter to the Secretary of the Senate, Brown wrote that he failed to report the transaction. However, Brown’s letter is dated May 14, 2011, but the stamp of acceptance from the Secretary of the Senate office is May 14, 2012. Brown has not addressed the discrepancy.

Concurrently, the STOCK Act was moving through Congress in early 2012, which requires the public notification of trades greater than $1,000 within 30-45 days of the trade and other transparency measures. The bill was signed into law on April 4, 2012, and Brown’s letter was stamped by the Secretary of the Senate’s office on May 14, 2012.

Breitbart News senior contributor Peter Schweizer and the late Andrew Breitbart led the charge to ban members of Congress from using nonpublic information for their own profit.

Brown was an active trustee of the Emily C. Brown Trust for over three years and held fiduciary responsibility. Under Senate ethics rules, it did not qualify as a blind trust, meaning Brown had access to and/or knowledge of trades made by the trust.

In February 2012, Brown loudly backed anti-insider trading legislation, telling CBS News, “Senators shouldn’t be voting on issues that affect their financial investments.”

The timing of his sale of Applied Materials stock and the year-long gap between the date of his letter and its stamp of acceptance raise the question of why the sale came shortly before the company’s restructuring announcement.

Follow Matt Mercer on X: @mattmercer.