Exclusive: DOJ says it never investigated Rep. Luna over insider trading

• The allegations stem from a Wall Street Journal report that Luna told a conservative influencer Trump would pick JD Vance as his running mate, allowing him to place a winning bet on Polymarket. The report was picked up by the Tampa Bay Times and several other publications.

Driving the news: In a July 22 letter addressed to Luna's attorney obtained by Axios, Associate Deputy Attorney General Diego M. Pestana wrote that DOJ "at no point had an open investigation" into Luna over allegations she engaged in criminal conduct "including allegations about insider trading in prediction markets."

• The letter adds that DOJ "never received a referral based on those same allegations from the Commodity Futures Trading Commission (CFTC)."
• "Thus, the Department never had an open investigation into this matter," Pestana wrote.
• The letter notes that criminal referrals from CFTC are sent to DOJ. The CFTC did not immediately respond to Axios' request for comment, including on whether they are or ever have investigated Luna.

A DOJ official confirmed Monday that there is no active investigation into Luna, and that DOJ, as of Monday, had still not received any referral from the CFTC.

Catch up quick: The Wall Street Journal reported on July 18, based on anonymous sources, that Luna tipped off MAGA influencer Rogan O'Handley, known as "DC Draino," that Trump would pick Vance as his running mate so he could place a winning wager on Polymarket.

• The Journal reported that Luna later joked O'Handley should have bet more.
• O'Handley denied receiving or trading on confidential information, and Luna denied knowing Trump's decision ahead of time, saying she was not "telepathic," the paper reported.
• The Journal also reported that the CFTC was investigating the allegations.
• The Journal declined to comment.

What they're saying: "False accusations are not a substitute for evidence," Luna said, arguing the DOJ letter confirms she "was never under criminal investigation" and that the allegations against her were "politically motivated."

• "Abusing our justice system for political or personal gain is disgusting, lowlife behavior, and no one should ignore the damage that knowingly false accusations can inflict on an individual's reputation, career, and family," Luna told Axios in a statement.
• "I never received insider information from Rep. Anna Paulina Luna or anyone else regarding President Trump's vice presidential selection. I welcome the Justice Department's confirmation that Rep. Luna was never investigated over these allegations and hope this helps correct the false narrative that has been circulated," O'Handley told Axios in a statement.

Zoom in: Luna is also using the DOJ letter as the basis for cease-and-desist demands sent to the Tampa Bay Times, arguing the newspaper falsely reported she was under federal investigation.

• The July 29 letter demands that the Tampa Bay Times remove two articles from July, issue a retraction, cease further publication of the claims, and preserve all documents related to its reporting in anticipation of possible litigation.
• "The Articles accuse a sitting member of Congress of engaging in insider trading - a federal felony carrying prison sentences of up to 25 years. This accusation rest entirely on anonymous informants of undisclosed reliability, relaying second and third hand accounts," Luna's attorneys wrote.
• The Tampa Bay Times declined to comment.

Zoom out: The allegations landed awkwardly for Luna, who has made banning congressional stock trading one of her signature issues.

• Luna spearheaded the House's effort to ban members of Congress from trading individual stocks.
• The Senate separately voted this year to prohibit senators and Senate staff from trading on prediction markets such as Polymarket and Kalshi.
• The House has yet to adopt a similar restriction.