A freshman, a congressman, close to the Pentagon, which is now closed The $ 10 billion cloud computing agreement with Microsoft apparently threw shares into the company shortly before the disputed deal went belly up a few weeks ago.
Representative Pat Fallon of Texas recently sold as much as $ 250,000 in stock of MSFT, just weeks before the joint defense infrastructure agreement between the U.S. military establishment and the technology giant was abruptly terminated public disclosure forms show.
It is problematic that Fallon also serves on the board that was tasked with overseeing the deal. The new subcommittee for cyber, innovative technologies and information systems of the House Armed Forces Committee is in charge of the Ministry of Defense “spending on technology“It is responsible for “Careful monitoring” of JEDI – which would see the migration of huge amounts of DoD data into a commercial cloud system and was subject to intense corporate competition.
Last September, the Pentagon announced Microsoft will deal with the contract, but canceled it later in July, claiming the contract would be terminated due to changes in the needs of the Ministry of Defense.
We approached the Fallon office with a request for comment and spokesperson provided us with the following statement:
“Congressman Fallon had absolutely no prior knowledge that the Pentagon intended to cancel the JEDI treaty. Any accusation that Congressman Fallon behaved inappropriately with his routine stock transactions is wildly speculative and has no basis in truth. We challenge everyone to present a shred of real evidence in support of this ridiculous accusation. ”
Fallon argued that the sale of the shares was basically just stupid luck, because the stock he owned was part of a call for options – a transaction in which he had previously bought $ 250,000 in shares of MSFT on May 26. sell “rights to other investors to buy later,” reports Salon. These investors subsequently decided on June 21 to buy shares in Fallon, prompting him to sell his position in the technology company. It just so happened that it happened a few weeks after JEDI’s untimely death. ¯ _ (tsu) _ / (
However, the allegations are not the only financial issue Fallon is currently dealing with. He also recently caught a flack for failed to detect properly millions of dollars in stock trading – leading some to wonder if they will face a breach of ethics. When the news leaked, a Fallon spokesman claimed he was “not aware of how often members of Congress are required to submit financial disclosures.”