Rep. Mikie Sherrill's gubernatorial campaign in New Jersey is in deep trouble over allegations tied to her Naval Academy record and multimillion-dollar stock trades while in Congress, Dick Morris, an adviser to President Donald Trump, told Newsmax Saturday.

"She made $7 million while she was in Congress doing insider trading," Morris said on Newsmax's "The Count" about the Democrat lawmaker.

"When you combine those two facts, she is a gone goose. I think that New Jersey voters will never choose her, and they should have vetted her before she got the nomination."

Morris' remarks responded to a report that Sherrill was barred from walking with her U.S. Naval Academy graduating class in 1994 after declining to report classmates in a cheating scandal.

Her Republican opponent, Jack Ciattarelli, has demanded she fully explain the episode.

Morris also seized on Sherrill's appearance on the radio show "The Breakfast Club," where she was pressed about a report on Newsmax in May about the $7 million in stock trades.

Sherrill, when pressed about the claims, called Newsmax a "very questionable organization" and said she was "not sure what they're talking about."

The Democrat lawmaker went on to question the report further, commenting, "Did I make $7 million in stock trades at all? I, I haven't, I don't believe I did, but I'd have to go see what that was alluding to."

Morris said insider trading could occur "when you get a tip that the Justice Department is going to or not going to sue a certain entity or approve or not approve a certain merger, and you buy or sell stocks based on it."

He compared the trades to patterns long observed among Washington insiders, including former House Speaker Nancy Pelosi, accusing Sherrill of "slipping through the loophole." He called for further scrutiny.

"Nancy Pelosi amassed billions of dollars in fortune doing that, and it should be illegal. But it's not," he said.

"And Mikie Sherrill slipped through the loophole on that and now wants to become governor of New Jersey. So maybe there needs to be an investigation into her."

His comments come amid a broader debate in Congress and among ethics experts over whether lawmakers should be allowed to trade individual stocks.

Under current law, members of Congress are subject to the STOCK Act of 2012, which clarified that they are not exempt from U.S. securities laws and requires members to publicly disclose stock transactions above certain thresholds, according to Legal Clarity. 

However, critics argue that the law's enforcement is weak and that it fails to deter conflicts of interest, since no member has yet been prosecuted under it.

Recent proposals in Congress seek to go further: banning individual stock trading by lawmakers, mandating blind trusts, or prohibiting trading altogether.

Meanwhile, Trump has endorsed Ciattarelli, calling him "strongly supported by the most highly respected leaders in New Jersey" and pledging that he would closely align with the Trump administration to advance the America First agenda if he is elected governor.

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