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Entrepreneur and author Grant Cardone is raising doubts about the extent of House Speaker Nancy Pelosi's wealth and how she has attained it during her decades in Congress. Cardone, who has an estimated net worth of $600 million, suggested the "math" behind Pelosi's reported $115 million fortune doesn't add up based on her $223,500 annual salary.
"How is it possible that public service leads to mega wealth status without some shortcut or self-interest situation?" Cardone questioned in a Twitter video. He stated, "I'd ban the ability for lawmakers to trade stocks instantly."
Pelosi's stock trading has come under scrutiny, with critics alleging she has unfairly capitalized on insider information. In July 2022, her husband Paul traded $5 million worth of computer chip stocks ahead of a vote on semiconductor subsidies. This raised eyebrows as he purchased shares in Nvidia, one of the world's largest semiconductor companies.
Data analyzed by Unusual Whales found Pelosi was the sixth most profitable trader in Congress in 2021, with trades netting her around $30 million that year. "Members of Congress shouldn't be allowed to trade stocks, period," stated Cardone. "It's a huge conflict."
A 2012 law known as the STOCK Act explicitly prohibited lawmakers from insider trading, though enforcement has been criticized as lax. As of late 2022, Pelosi had not traded any stocks herself since joining Congress in 1987, with all transactions attributed to her husband Paul.
Some experts defend the ability of lawmakers to invest, with Cornell Law professor Charles Whitehead stating "You don't want to discourage people with wealth and talent from serving." However, he added that disclosure rules should be enhanced.
Aside from stock trades, Pelosi has cited other wealth sources like real estate investments, an inheritance, and her husband's ventures. Her current term as House Speaker expires in January 2025.
When proposing the stock trading ban, Cardone raised the hypothetical example of "If I gave you £35,000 a year for the last 35 years....you wouldn't have $100+ million." He implied Pelosi's fortune goes beyond what congressional compensation could sustainably generate.
While noting Pelosi is far from alone among wealthy members of Congress, Cardone said "they should never be trading stocks when they have that level of intel unavailable to the rest of us."
In December 2022, the U.S. House approved a bill requiring prompt disclosure of stock trades by members, though a Senate vote is still pending. Cardone is among the business voices calling for an outright trading prohibition on lawmakers.
