S. 4134 — Stop Insider Trading Act

This section adds a new subchapter IV to chapter 131 of title 5, United States Code, establishing restrictions on covered investments—defined as securities of publicly traded companies or related derivatives, excluding interests in small business concerns (as defined in 15 U.S.C. 632), certain U.S.- or state-concentrated funds, and qualifying blind trusts—for Members of Congress and their spouses and dependent children. It prohibits such covered individuals from purchasing covered investments (except to reinvest dividends received from them) and requires Members of Congress to publicly disclose notice of any intended sale of a covered investment by themselves or their spouse or dependent child at least 7 calendar days, and no more than 14 calendar days, prior to the sale. Exceptions apply to spousal or dependent child transactions made on behalf of others, as compensation, or to fulfill fiduciary or occupational duties. Violations incur a fee paid by the responsible Member of Congress equal to the greater of $2,000 or 10% of the transaction value, plus any net gains realized since becoming a covered individual; prohibited purchases also require divestiture.