BOSTON, Mass. – This morning, The American Prospect published a follow-up investigation into Congressman Seth Moulton's sweetheart investments in private defense companies, revealing that the explanation Moulton gave at last week's debate is contradicted by his own financial disclosure – and detailing new connections between his personal investments, a longtime political donor, and a company positioned to profit from billions in Pentagon spending.

At last week's debate, Moulton claimed the investments scrutinized by The Prospect were actually his wife's portfolio. But today’s The Prospect reports that Moulton's investment in defense-AI company webAI – one of his largest private holdings – is jointly held in his personal IRA.

“Congressman Seth Moulton has spent months keeping voters in the dark about his private defense investments, and when finally confronted with them, he gave an explanation that his own financial disclosure contradicts,” said Markey for Senate spokesman Jonathan Ng. “He delayed disclosure, obscured his financial interests, and – as the Prospect reported today – then tried to distance himself from investments held in his own personal IRA. At some point, this stops being a transparency problem and becomes a basic question of trust: Massachusetts voters deserve to know whether Seth Moulton is working for them or for the corporate interests making him richer.”

What The Prospect found:

• Moulton’s investments were his own, despite attempts to deflect.  His webAI stake – one of his largest – is in his personal IRA. His campaign did not respond to the Prospect’s questions about the discrepancy.
• He made another defense investment through his donor's personal investment vehicle. Moulton first invested between $50,001 and $100,000 in Divergent Technologies in 2023. In July 2025, he bought a second stake worth between $15,001 and $50,000 through Lateralus Holdings IV – the personal investment vehicle of longtime Moulton donor David Shuman, who joined Divergent's board in August 2024 and whom the Prospect previously identified as a principal player in all three companies in which Moulton invested in.
• Divergent's Pentagon business and valuation have soared. The military manufacturer was in the running last year for at least $10 billion in government contracts, according to reporting cited by The Prospect. Moulton's latest disclosure values his total Divergent holdings at between $100,002 and $200,000 – up as the company's Pentagon business expanded.
• There are still no answers about how he got in. The Prospect asked both Shuman and Divergent how and why Moulton was able to invest "on terms not available to ordinary investors." Neither responded.
• The Prospect concludes: “The Trump administration’s confused and self-defeating relations with China should be the subject of intense scrutiny, especially by Democrats in Congress. Moulton should be at the center of this. Instead, he is compromised by his own investments and personal connections.”

Read the full investigation in The American Prospect.