CHARLESTON, W.Va. -- Howard Swint, the Democratic challenger in the U.S. House race against Shelley Moore Capito, R-W.Va., is alleging that Capito and her husband Charles benefited from insider information when they traded Citigroup stocks in 2008.
Capito is a member of the House Financial Services Committee. Her husband is a Citigroup Global Markets executive.
Even though Citigroup stock dropped 76 percent at one point in 2008, the Capitos made $50,000 from trading Citigroup stocks that year.
Kent Gates, who is managing Capito's campaign, said these and other charges about using insider information for insider trading are simply false.
In her "Calendar Year 2008 Financial Disclosure Statement" filed with the House of Representatives, Capito reported making three sales of Citigroup stock -- on July 18, Sept. 17 and Nov. 18. The three transactions totaled between $100,001 and $250,000, according to the statement.
'Capito files everything'
Capito's four most recent financial disclosure statements reported her husband received salaries from working for Citigroup Global Markets in 2008, 2009 and 2011.
He also reported "earned income" from: United Bank in 2009, 2010 and 2011; Morgan Stanley in 2009; and Wells Fargo Advisors in 2011.
None of her financial disclosure reports, however, reveal the salaries these banking institutions paid Charles Capito.
Swint is asking that those figures be released.
Gates said Capito "has filed all required disclosure documents as a candidate and House member. Howard Swint's desperate calls for additional information, not legally required, ring hollow -- especially since he has failed transparency by refusing to file personal and campaign financial information."
A search of Federal Elections Commission records did not reveal any filings by Swint.
Once candidates spend more than $5,000 on their Congressional campaigns, the FEC requires them to file financial reports.
Gates said Swint is likely to have already spent more than $5,000, including money to pay the $1,700 filing fee, as well as expenses for his campaign website, yard signs, brochures, opposition research and campaign trips -- including at least three visits to the Eastern Panhandle.
"Capito files everything," Gates said. "He [Swint] is hiding everything from public transparency.
On Tuesday, Swint said, "I have not reached the threshold of $5,000 in expenditures or in campaign contributions. I am making this campaign a hallmark for campaign finance and lobbying reform."
According to her latest FEC report, covering the period through June 30, Capito reported raising $1.59 million and spending $746,692. Her campaign had $1.4 million in "cash on hand."
Citigroup stock lost 23 percent of value
On Oct. 28, 2008, Citigroup and eight other banks and financial institutions became the first companies to receive TARP [Troubled Asset Relief Program] funds. Citigroup received $25 billion.
A Special Inspector General's report released on Jan. 13, 2011 -- titled "Extraordinary Financial Assistance provided to Citigroup Inc." -- reported Citigroup continued to suffer "significant instability after receiving its initial $25 billion TARP investment.
"Citigroup would lose $27.68 billion in 2008, and by November 19, 2008, its stock price had dropped precipitously," the report stated. Then Treasury Secretary Henry Paulson believed "the company was teetering on the edge of failure."
The Capitos made one Citigroup trade in November.
In her "Disclosure Statement to the House for 2008," Capito reported selling shares of Citigroup stock worth between $100,000 and $250,000 on Nov. 18, 2008. The next day, Citigroup stock lost 23 percent of its value.