Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US senators dumped stock before coronavirus crash, prompting accusations of insider trading

Richard Burr and Kelly Loeffler sold as much as US$1.7 million and US$3.1 million in shares respectively before markets collapsed amid pandemic fears. Loeffler, one of the wealthiest US lawmakers, is married to chairman of New York Stock Exchange

An independent watchdog demanded an investigation on Friday after two Republican senators aware of the looming coronavirus disaster dumped their stocks even as the White House played down the threat.

Senator Richard Burr, the powerful chair of the Senate Intelligence Committee, and Congress newcomer Kelly Loeffler both faced criticism over their investment sell-offs, weeks before US stock markets collapsed.

Burr, who receives almost daily briefings from the US intelligence community on threats to the country, sold as much as US$1.7 million worth of shares on February 13.

Loeffler’s investments manager sold as much as US$3.1 million in shares between late January and February 14, official documents show. Loeffler, one of the wealthiest US lawmakers, is a member of the Senate Health Committee. Her husband is chairman of the New York Stock Exchange.

Critics accuse both of acting on inside information about the Covid-19 virus threat.

They also noted that, while Burr wrote for Fox News in early February that the American public had little to fear, he told a private gathering of donors weeks later that the coronavirus could resemble the 1918 Spanish Flu, which killed tens of millions.

Both senators denied any impropriety as some calls came for their resignations.

“Burr knew how bad it would be. He told the truth to his wealthy donors, while assuring the public that we were fine. THEN he sold off $1.6 million in stock before the fall. He needs to resign,” Democratic Congresswoman Alexandria Ocasio-Cortez said on Twitter.

On Friday, independent Congressional watchdog Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint to the Senate Ethics Committee.

“The job of a US Senator is to serve the American people,” said CREW director Noah Bookbinder. “It appears that in a time of crisis, these senators chose instead to serve themselves, violating the public trust and abdicating their duty.”



The reports of insider stock trading added fuel to accusations that Trump and the US leadership knew of the serious threat but kept the public in the dark, delaying action that could have curbed the spread of infections.

As the Senate Intelligence Committee chairman, Burr receives much of the same daily reports on threats to the country as the White House.

He wrote on the Fox News website on February 7 that the government was “better prepared than ever” for the Covid-19 virus. But on February 13 he and his wife sold holdings in major companies, including leading hotel and travel groups.

At the time the US had only about a dozen cases and Trump was saying the country would not be significantly affected.

On February 27, one day after Trump declared that the number of US cases would decline, the North Carolina senator told wealthy donors that coronavirus was a threat like the 1918 Spanish Flu, National Public Radio reported Thursday.

“It is much more aggressive in its transmission than anything that we have seen in recent history,” Burr told the group. “It is probably more akin to the 1918 pandemic,” he said, warning them not to travel.

Burr defended his actions, saying NPR had “knowingly and irresponsibly misrepresented” his speech to donors.


In a statement on Friday he said he himself had asked the Senate Ethics Committee to review the matter “with full transparency”.

“I relied solely on public news reports to guide my decision regarding the sale of stocks on February 13,” he said.

Loeffler, who received a government briefing on the coronavirus threat on January 24, called the criticisms “a ridiculous and baseless attack”.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×