Paul Pelosi, husband of former House Speaker Nancy Pelosi, sold a significant amount of Visa stock just months before the company was hit with an antitrust lawsuit by the Department of Justice (DOJ). The DOJ's lawsuit accuses Visa of using its dominant position in the debit card market to unfairly penalize competitors.
The New York Post reported that Pelosi's sale of 2,000 Visa shares, worth between $500,000 and $1 million, occurred less than three months before the company was sued. The DOJ alleges that Visa monopolized the debit card market, penalized businesses using competing payment systems, and intimidated fintech firms into cooperating with Visa.
According to a congressional filing dated July 3, Paul Pelosi’s sale was categorized as a spousal transaction.
Around the same time, he also sold 2,500 shares of Tesla stock and made investments in Nvidia and Broadcom. The sale of Visa shares came before any public knowledge of the DOJ's investigation into the company.
The antitrust lawsuit against Visa was filed on a Tuesday, following years of review by the DOJ’s antitrust unit. The suit contends that Visa illegally consolidated control over the debit card market, pushing companies to use their payment processors instead of competitors.
Visa allegedly employed aggressive tactics, such as penalizing companies that used competing payment processors. The DOJ claims Visa incentivized companies like Square, Stripe, and PayPal to rely on its services by offering lower fees and other perks. In one instance, Visa is said to have financially benefited Square subsidiary Cash App by steering transactions toward Visa-branded products.
In 2021, Visa had disclosed that it was under scrutiny by the DOJ, which had requested information on possible antitrust violations. Visa asserts that its debit card practices in the U.S. comply with relevant laws and has cooperated with the DOJ throughout the investigation.
The timing of Paul Pelosi’s stock sale has raised eyebrows, with some critics pointing to his wife Nancy Pelosi’s long-standing position in Congress as a potential conflict of interest. They argue that lawmakers and their families may have access to non-public information that could influence financial decisions.
Nancy Pelosi's spokesperson, however, has stated that she does not own any stocks and had no knowledge of or involvement in the transaction.
"Speaker Pelosi does not own any stocks, and she has no prior knowledge or subsequent involvement in any transactions," the spokesperson clarified, attempting to distance her from her husband’s financial dealings.
Legal experts, including former SEC enforcement attorney Ron Geffner, have cautioned against jumping to conclusions about the Pelosi stock sale. Geffner emphasized that the circumstances surrounding the transaction should be investigated further before any judgments are made.
“At various critical inflection points in history, members of our government have engaged in trading at a time which their conflicts are called into question,” Geffner noted. He added that it is essential to understand whether the sale was part of a broader portfolio shift and who actually executed the transaction on behalf of Pelosi.
The incident has reignited the broader debate over stock trading by lawmakers and their families. Many argue that such trades should be more tightly regulated to prevent potential conflicts of interest.
Though there is no direct evidence that Paul Pelosi’s sale was influenced by insider knowledge, the optics of the transaction, coupled with his wife's political career, have drawn criticism.
Visa, meanwhile, remains steadfast in its defense, insisting that its U.S. debit practices comply with legal standards.
"We believe Visa’s U.S. debit practices are in compliance with applicable laws," the company said in a statement. The lawsuit could have significant financial and operational impacts on Visa if the DOJ’s claims are proven in court.
The DOJ lawsuit was the result of a years-long review of Visa’s business practices. The company has faced allegations of monopolizing the debit card market by discouraging the use of rival payment processors.
While Visa has denied any wrongdoing, the legal battle could be drawn out as the DOJ seeks to establish whether the company used its market power unfairly.
As Visa's legal issues unfold, attention will likely remain on the Pelosi family's stock activities.
Although Nancy Pelosi has repeatedly distanced herself from her husband's financial decisions, the controversy highlights ongoing concerns about financial transparency and ethics in government.
Whether the DOJ's lawsuit against Visa will result in major regulatory changes or penalties remains to be seen. For now, both the company and Paul Pelosi are in the spotlight, with questions about timing, influence, and transparency at the forefront.
