A Republican congressman who says Disney is sexualizing children and 'kowtowing' to Chinese Communists is also a Disney stockholder

• Rep. Chris Jacobs, a Republican from New York, is highly critical of the Walt Disney Company.
• Jacobs is also a Disney stockholder who recently sold some of his stake, federal records show.

On April 7, Rep. Chris Jacobs of New York joined 16 of his Republican colleagues in declaring the Walt Disney Company is "purposefully influencing small children with its political and sexual agenda" while simultaneously capitulating to Chinese Communists who are "actively engaged in human rights abuses."

The lawmakers likewise threatened to withhold support for extending Disney copyrights related to Mickey Mouse, the company's most iconic character.

What Jacobs didn't say: He personally invests in Disney stock.

Federal records Jacobs filed with the US House on Thursday confirm the congressman sold between $1,001 and $15,000 worth of his Disney stock on April 11. Jacobs described the transaction as a "partial sale," indicating he still owns some of his Disney investment, which separate federal financial disclosures showing they were worth between $15,001 and $50,000 as of December 31, 2020.

By law, members of Congress are only required to disclose the value of their stock assets in broad ranges, making it difficult to know whether Jacobs earned a profit from his Disney stock sale and how much stock he has left. Disney stock peaked in price during April 2021, closing above $185 per share, but its value has since slid, with shares trading below $105 in recent days.

Asked about why Jacobs still invests in Disney despite his concerns, Jacobs' office said the congressman does not control his Disney stock.

"The shares are not held personally by Congressman Jacobs. They are owned by a trust of which Congressman Jacobs is the beneficiary, but not a trustee. Congressman Jacobs did not request this transaction, nor does he have the authority to execute trades or request them," Jacobs spokesperson Christian Chase said in a statement to Insider.

In his federal filing, Jacobs states that his Disney stock is held within an investment called "CL Trust > LDJ Fam Inv LLC > Parametric." His office offered no further details.

Should lawmakers own stocks?

Jacobs' personal financial situation underscores how federal lawmakers take wildly different approaches to their own investment portfolios.

Some lawmakers have a hands-on approach, making stock trades themselves. Others pay financial advisors or money managers to do the work for them. A few employ exotic webs of family trusts or limited liability companies to secure their wealth. Generally, lawmakers offer few certified, public details about these arrangements, such as how much control they exert over them, and when. Some abstain from trading stocks at all.

Congressional guidance recommends that federal lawmakers use what's known as a "qualified blind trust" to ensure they've taken the "most comprehensive approach" to avoiding "potential conflicts of interest or the appearance of such conflicts." But such trust can be expensive and time-consuming to establish, and only a handful of members of Congress have done so. Jacobs is not among them.

This comes at a time when Congress itself is considering banning lawmakers from trading individual stocks at all, with proponents of a ban citing rampant violations of the anti-corruption Stop Trading on Congressional Knowledge Act of 2012 and widespread conflicts of interest, be them actual or perceived.

Jacobs' office did not respond to a question about whether the congressman, in principle, supports or opposes a ban on lawmakers trading individual stocks.

"Even if Members of Congress aren't fully aware of their own stock portfolios, just the perception that they're taking actions to line their own pockets can be really damaging," said Aaron Scherb, senior director of legislative affairs for nonpartisan government watchdog organization Common Cause. "When Members of Congress are allowed to take votes and make other official actions that influence companies in which elected officials own stock, it looks and smells bad."

Jacobs, who represents western New York's 27th Congressional District but intends to run in the state's newly drawn 23rd Congressional District, isn't the only member of Congress to lambaste Disney while owning the company's stock.

Rep. Marjorie Taylor Greene, a Republican from Georgia, earlier this year called Disney "pro-child predator" at the same time she reported owning up to $45,000 in Disney shares.

Greene wasn't among the lawmakers who signed the April 7 letter to Disney CEO Bob Chapek. But Jacobs' criticisms are similar to hers.

"Disney has capitulated to far-left activists through hypocritical, woke corporate actions," the letter reads, citing the company's opposition to Florida's Parental Rights in Education Act, a law that prohibits classroom instruction on gender identity and sexual orientation for children in kindergarten through 3rd grade.

Opponents have dubbed it the "Don't Say Gay" law.

Jacobs and his colleagues continued: "Given Disney's continued work with a Communist Chinese regime that does not respect human rights or US intellectual property and given your desire to influence young children with sexual material inappropriate for their age, I will not support further extensions applicable to your copyrights, which should become public domain.

"It's unfortunate that Disney, once an American success story, has allied with a hostile foreign regime and domestic ideologues who seek to tear our country apart," their letter added.

In a memo to Disney staff earlier this month, Chapek offered no apologies for his company's actions.

"I want to be crystal clear: I and the entire leadership team unequivocally stand in support of our LGBTQ+ employees, their families, and their communities. And, we are committed to creating a more inclusive company—and world," he wrote.