Swint alleges: "They had nonpublic information, then acted on it. They dumped stock to avoid the crash the next day.
"Citigroup lost 76 percent that year. But the Capitos had a $50,000 gain in their transactions that year."
Gates said Swint's charge about using "nonpublic information" to sell and trade Citigroup stock "is absolutely false and without evidence.
"Swint's entire campaign had been waged on personal, false attacks and now intentional lies like this offered to justify his calls for more disclosure by others, while he fails to disclose any information about him or offer any solutions to real challenges we face," Gates said.
'Very disconcerting, very troubling'
Author Peter Schweizer, a fellow at Stanford University's Hoover Institution -- a conservative-leaning think tank -- mentions Capito in his book published last November.
The book -- "Throw Them All Out: How Politicians and their Friends Get Rich Off Insider Stock Tips, Land Deals and Cronyism That Would Send the Rest of Us to Prison" -- criticizes politicians of all political views.
Shortly after the book was published, Capito said it contained "seriously misleading statements that were made recklessly."
Schweizer's book mentioned her just once, stating, "Capito and her husband dumped between $100,000 and $250,000 in Citigroup stock the day after the briefing."
Schweizer was referring to a Sept. 16, 2008, closed-door meeting Congressional leaders had with Treasury Secretary Henry Paulson and Federal Reserve Bank Chairman Ben Bernanke.
Schweizer previously told the Gazette that he did not make any factual errors in his book.
"I simply noted that as a member of the House Financial Services Committee, she sold a large quantity of stock in Citigroup.
"I did not say that she attended the [private Sept. 16] meeting, nor did I ever specifically say that she used insider information," Schweizer wrote in a December e-mail.
"My point is that a large number of committee members were actively trading stocks during the financial crisis and the subsequent debate over TARP, the financial bailout. Most Americans think this is outrageous and presents a clear conflict of interest."
Gates said Schweizer later backed off.
"Capito did not attend said meeting," Gates stated. "Stock attained as part of spouse employment compensation ... was sold because [of an] expiring call option, leading the author backtracking in two interviews."
Gates cited a November 2011 interview with WCHS-TV when he said "that he never claimed the transaction was done off 'insider information.'"
Gates said Schweizer backtracked "further" when the Sunday Gazette-Mail quoted him as stating, "I did not say Capito was at the meeting" and "never specifically used inside information."
In a Sept. 26 filmed interview with MorganCountyUSA, Schweizer said, "There were a series of transactions related to financial stock that took place in 2008 during the financial crisis. And as I demonstrated in other instances, this is very disconcerting because it indicates the possibility that these transactions were done based on inside information."
Asked recently if he backed off from statements about Capito in his book, Schweizer said, "No, not at all. ... I don't exactly know what a person was thinking when they made these trades.
"But the timing is very disconcerting and very troubling. And the timing is the timing. That's not something that I made up. That's based on the facts and the information. So no, I have not backed off at all on what I said in the book."
Reach Paul J. Nyden at pjny...@wvgazette.com or 304-348-5164.