SEC Ends Insider Trading Probe of Ex-GOP Sen. Richard Burr With No Action

The U.S. Securities and Exchanges Commission closed down an almost two-year-old probe into stock trades made in the United States by former Senator. Richard Burr (R.S.C.) While in office in 2020, took no action against the outgoing Senator.

Burr released a statement in which he announced the end of the probe. With CNN Friday

“This week, the SEC informed me that they have concluded their investigation with no action,” Burr’s statement read. “I am glad to have this matter in the rearview mirror as I begin my retirement from the Senate following nearly three decades of public service.”

Burr and Gerald Fauth, his brother-in law, were questioned about the timing of trades they made during the COVID-19 pandemic.

Senate financial disclosures showed Burr Stocks sold for $628,000 to $1.7 Million on February 13, 2020. Burr’s actions included sales of stocks in the hospitality industry, which suffered heavy financial losses shortly thereafter as the pandemic hit. After receiving closed-door briefings about COVID-19, Burr executed those stock sales.

Lawmakers’ Stock Sales Raised Questions

Burr was one of many senators who were scrutinized for their timing of stock sales.

Sens. Dianne Feinstein (D-Calif.), Kelly Loeffler (R-Ga.), and Jim Inhofe (R-Okla.) also came under scrutiny for their pandemic-era stock trades.

According to disclosure forms, Feinstein was able to sell stock between $1.5 and $6 million from Allogene Therapeutics in California between January 31 and February 18, 2020.

Loeffler was able to sell stocks in January for between $1.3 and $3.1 millions, including Exxon Mobil oil and Resideo Technologies that makes smart home products. Also, records show that Loeffler bought up to $250,000 worth of stocks in Citrix. Citrix sells software that helps people work remotely.

Senate records indicate that Inhofe has sold stock in PayPal and Brookfield Asset Management up to $500,000 each.

In May 2020, the U.S. Department of Justice had accumulated a total of 785,000 records. Investigations into Feinstein, Loeffler and Inhofe were closed, but Burr’s stock trades remained under scrutiny.

As part of the DOJ investigation, FBI agents searched Burr’s Washington D.C.-area home and seized his cellphone.

Burr maintained his innocence during the probes. He insisted that he made all his stock trading decisions. “solely on public news reports,” CNBC also reports from Asia where the COVID-19 epidemic began.

Burr had been previously declared possessed by the SEC. “material nonpublic information concerning COVID-19 and its potential impact on the U.S. and global economies,” CNN.

Stop Trading on Congressional Knowledge: 2012 (STOCK) Act The use of the senate’s funds is prohibited for legislators and their aides “non-public information” They were able to use their official duties to make a personal profit, which includes insider trading.

As investigations into Burr’s stock trades continued, Burr accepted to resign as Chairman of Senate Intelligence Committee in May 2020.

SEC Closes Investigation 2 Years After DOJ

The SEC’s decision to close its investigation came about two years after the Burr was not investigated by the DOJ.

“Tonight, the Department of Justice informed me that it has concluded its review of my personal financial transactions conducted early last year,” Burr stated this in a January 2021 statement. “The case is now closed. I’m glad to hear it. My focus has been and will continue to be working for the people of North Carolina during this difficult time for our nation.”

The DOJ and SEC investigations had lasted through almost the entire second half of Burr’s third term in office. Burr was elected to the Senate on January 3. Senator Ted Budd (R.S.C.) succeeds Burr.

From NTD News

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