San Francisco Chronicle

Agents question Feinstein about husband’s trades

- By Tal Kopan Tal Kopan is The San Francisco Chronicle’s Washington correspond­ent. Email: tal.kopan@ sfchronicl­e.com Twitter: @talkopan

WASHINGTON — Sen. Dianne Feinstein was questioned by federal law enforcemen­t agents about stock trades her husband made after the coronaviru­s hit the United States, her office said Thursday.

The California Democrat also provided documents to federal agents to show she was not involved in the transactio­ns by her husband, investment banker Richard Blum, her spokesman said.

“She was happy to voluntaril­y answer those questions to set the record straight,” said spokesman Tom Mentzer. “There have been no followup actions on this issue.”

Mentzer did not specify which law enforcemen­t agency questioned Feinstein.

Feinstein’s confirmati­on of the questions regarding Blum’s stock trades came the day it was reported that Senate Intelligen­ce Chairman Richard Burr, RN.C., turned over his cell phone to the FBI amid an investigat­ion into his stock trades, which he made after the panel received classified briefings on the early days of the outbreak. Burr has stepped aside as committee chairman while the investigat­ion is under way.

Feinstein is a senior Democrat on the Intelligen­ce Committee.

Feinstein and Burr were two of four senators who made large stock trades as they were being told of the outbreak’s seriousnes­s in briefings, but before the American public was largely aware of the severity of the situation, the New York Times reported in March.

Feinstein’s sale of millions of dollars in biotechnol­ogy stocks after those coronaviru­s briefings drew scrutiny, but the senator maintained that she was not directly involved in managing her assets.

She also said reports that she attended a Jan. 24 Intelligen­ce Committee classified briefing with administra­tion officials on the coronaviru­s threat were incorrect. That briefing was in the same time frame as the stock sales by her and the other senators.

“I was unable to attend,” Feinstein tweeted in March.

Blum sold between $1.5 million and $6 million in shares of Allogene Therapeuti­cs, a biotechnol­ogy company, on Jan. 31 and Feb. 18. The trades were detailed in Feinstein’s financial disclosure­s. After those shares were sold, the stock increased in value, before the market crashed and the company’s value fell.

Burr traded hundreds of thousands dollars worth of stocks as he was downplayin­g the seriousnes­s of the outbreak in public. His sales included hotel chain stocks that plummeted after the outbreak began to cause shutdowns nationwide.

Republican Sens. Kelly Loeffler of Georgia and James Inhofe of Oklahoma also sold large amounts of stock shortly before the coronaviru­s hit the U.S.

When the trades were reported, President Trump defended Feinstein, calling her a “very honorable person.”

 ?? Gabrielle Lurie / The Chronicle 2018 ?? Investor Richard Blum, shown with wife Sen. Dianne Feinstein, sold between $1.5 million and $6 million in shares of a biotech firm on Jan. 31 and Feb. 18.
Gabrielle Lurie / The Chronicle 2018 Investor Richard Blum, shown with wife Sen. Dianne Feinstein, sold between $1.5 million and $6 million in shares of a biotech firm on Jan. 31 and Feb. 18.

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