Warren Presses SEC Chair Atkins to Investigate Suspicious Activity Involving Defense Secretary Hegseth Ahead of U.S.-Israel Iran Strikes

Warren Presses SEC Chair Atkins to Investigate Suspicious Activity Involving Defense Secretary Hegseth Ahead of U.S.-Israel Iran Strikes

"If accurate, these reports suggest that Secretary Hegseth may have engaged in a serious abuse of public trust."

"I request that the SEC investigate any attempt by Secretary Hegseth or any other individual to trade on the basis of misappropriated insider information."

Text of Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to Paul Atkins, Chairman of the Securities and Exchange Commission (SEC), following a report that a broker for Secretary of Defense Pete Hegseth attempted to purchase millions of shares in a defense industry fund prior to the U.S.-Israel attacks on Iran. The Senator raises serious concerns about whether the Secretary of Defense may have used highly sensitive, material non-public information on U.S military activities for personal gain. Federal law prohibits trading in securities on the basis of material, nonpublic information.

"The Securities and Exchange Commission (SEC) is responsible for enforcing federal securities law, including laws governing fraud and insider trading. Failure to address this type of potential corruption undermines the confidence investors around the world place on the integrity of our markets and puts our national security at risk. I request that the SEC investigate any attempt by Secretary Hegseth or any other individual to trade on the basis of misappropriated insider information," wrote the Senator.

"Federal law prohibits trading in securities on the basis of material, nonpublic information with intent to deceive and in breach of a duty of trust or confidence," wrote the Senator. "At minimum, any real or perceived corruption related to insider trading by administration officials or their agents threatens to harm investors and erodes confidence in the market. Any unauthorized disclosure of classified information about impending military action, in pursuit of personal financial gain or otherwise, puts service members and our national security at risk."

The Senator concluded: "This alleged misconduct would be just the latest in a growing list of administration insiders that appear to be using government information for personal gain… The SEC must do its part to stem corrupt actions that threaten market integrity and national security."

The Senator requests written responses no later than May 15, 2026.

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