Feds eye senators who sold stocks before drop
Federal authorities are reviewing the stock sales of four lawmakers just before the market slide triggered by the coronavirus outbreak, a person familiar with the matter said.
Financial disclosure statements indicated that Sens. Richard Burr, R-N.C.; Jim Inhofe, R-okla.; Kelly Loeffler, RGA.; and Dianne Feinstein, D-calif.; their spouses or advisers sold large chunks of stock around the time lawmakers received behind-the-scenes briefings about the severity of the coronavirus, which has claimed more than 2,900 lives in the U.S.
The senators denied any wrongdoing, and Burr asked the Senate Ethics Committee to review his transactions involving up to $1.6 million. The federal inquiry, which was in its early stages, was first reported by CNN.
Burr and his wife sold the stocks in February, according to disclosure statements. Lawmakers are not required to disclose exact transaction values and instead report ranges for transactions that exceed $1,000.
The North Carolina senator, chairman of the Intelligence Committee, asserted that he made the trades based on news reports about COVID-19, not on private information that flowed from government briefings.
“The law is clear that any American, including a senator, may participate in the stock market based on public information, as Sen. Burr did,” Burr’s attorney, Alice Fisher, said Monday. “Sen. Burr welcomes a thorough review of the facts in this matter, which will establish that his actions were appropriate.”
According to disclosure statements, Loeffler and her husband, New York Stock Exchange Chairman Jeffrey Sprecher, sold $1 million to $2.49 million in February, according to disclosure statements.
Inhofe sold $50,000 to $100,000 in stock Feb. 20, and Feinstein’s disclosure report shows sales of $1 million to $5 million in stocks.
Loeffler, Inhofe and Feinstein said their financial transactions were handled by third-party advisers, or in Feinstein’s case, as part of blind trust and that they made no personal decisions on the moves.