Senators Caught Dumping Stocks After Coronavirus Briefing

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As the U.S. prepared for the Coronavirus outbreak, some Senators acted to protect their financial portfolios, apparently. Shortly after NPR revealed that Senate Intelligence Committee Chairman Richard Burr (R-N.C.) had issued a private warning about the then-incoming Coronavirus weeks before the public knew, reports came out that he and at least three other Senators dumped large amounts of stocks in close connection to both Coronavirus briefings for members of Congress and initial outbreaks of cases, which those briefings could have tipped them off would be the start of major upheaval to come. The abrupt stock sales suggest insider trading — which is, of course, illegal.

There’s even a specific piece of legislation prohibiting insider trading among members of Congress. The STOCK Act bans members of Congress from making stock sale decisions based on non-public information, although based on the circumstances and timing, that’s exactly what seems to have happened here. Notably, Burr is one of just a few Senators who voted against the STOCK Act when it initially passed.

Burr, for his part, sold off between $628,000 and $1.72 million in stock in conjunction to classified Coronavirus briefings. That stock was in industries like hotels, which obviously would be poised to get hard hit in the event of a Coronavirus outbreak that sharply curtailed travel across the U.S. and world. The Marriott corporation alone recently announced plans to furlough tens of thousands of workers.

A Burr spokesperson tried to defend the Senator by insisting that Burr’s stock sales were made before market volatility related to the Coronavirus began — but that’s the point. Burr knew that the volatility was coming, which gave him reason to sell.

As Burr’s spokesperson insisted:

‘Senator Burr filed a financial disclosure form for personal transactions made several weeks before the U.S. and financial markets showed signs of volatility due to the growing coronavirus outbreak. As the situation continues to evolve daily, he has been deeply concerned by the steep and sudden toll this pandemic is taking on our economy.’

As CNN White House correspondent John Harwood put it in reply:

‘The fact that Burr sold the stock “before market volatility began” is not a rebuttal. It’s precisely the issue.’

Burr isn’t the only one who tried to financially benefit from the advance information that they got about the Coronavirus. Georgia Senator Kelly Loeffler (R) and her husband — who works as the chairman and CEO of the New York Stock Exchange itself — sold at least $1.2 million in stock in two spurts, first after a pair of Congressional briefings and then after initial Coronavirus cases were confirmed in the U.S., which was weeks before community spread was also confirmed. The other Senators under scrutiny for suspiciously timed stock sales include  Jim Inhofe (R-Okla.) and Dianne Feinstein (D-Calif.).

Notably, Fox News’s Tucker Carlson insisted that if Burr engaged in the insider trading he’s accused of, he needs to resign. There’s no indication that he’ll actually do that. Loeffler, for her part, insisted that she doesn’t actually personally control her stock portfolio. But did she hand off information to those who do control it? These questions need answered.