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Tag: richard burr

Bombshell Records Show Alleged Insider Trading By GOP Senator

Reprinted with permission from ProPublica

After Sen. Richard Burr of North Carolina dumped more than $1.6 million in stocks in February 2020 a week before the coronavirus market crash, he called his brother-in-law, according to a new Securities and Exchange Commission filing.

They talked for 50 seconds.

Burr, according to the SEC, had material nonpublic information regarding the incoming economic impact of coronavirus.

The very next minute, Burr's brother-in-law, Gerald Fauth, called his broker.

Fact-based, independent journalism is needed now more than ever.

The revelations come as part of an effort by the SEC to force Fauth to comply with a subpoena that the agency said he has stonewalled for more than a year, and which was filed not long after ProPublica's story.

ProPublica previously reported that Fauth, a member of the National Mediation Board, had dumped stock the same day Burr did. But it was previously unknown that Burr and Fauth spoke that day, and that their contact came just before Fauth began the process of dumping stock himself.In the filings, the SEC also revealed that there is an ongoing insider trading investigation into both Burr and Fauth's trades.

It had previously been reported that federal prosecutors had decided not to charge Burr.

Burr's spokesperson did not immediately respond to questions. Fauth's lawyer and the SEC did not respond to questions. Fauth hung up on a ProPublica reporter.

According to the SEC, Fauth has cited a medical condition for why he cannot comply with the subpoena, even as he has been healthy enough to continue his duties at the National Mediation Board. In its filings, the SEC accuses Fauth of engaging in "a relentless battle" to dodge the subpoena.

In 2017, President Donald Trump appointed Fauth to the three-person board, a federal agency that facilitates labor-management relations within the nation's railroad and airline industries. President Joe Biden reappointed him to the board.

On the day he received the call from Burr, Fauth sold between $97,000 and $280,000 worth of shares in six companies — including several that were hit particularly hard in the market swoon and economic downturn. According to the SEC, the first broker he called after hearing from Burr was out of the office, so he immediately called another broker to execute the trades.

In its filings, the SEC also alleges, for the first time, that Burr had material nonpublic information about the economic impact of the coming coronavirus crisis, based on his role at the time as chairman of the intelligence committee, as a member of the health committee and through former staffers who were directing key aspects of the government response to the virus.

The week after the trades, the market began its crash, falling by more than 30 percent in the subsequent month.

Burr came under scrutiny after ProPublica reported that he sold off a significant percentage of his stocks shortly before the market tanked, unloading between $628,000 and $1.72 million of his holdings on February 13 in 33 separate transactions. The precise amount of his stock sales, more than $1.6 million, is also a new detail from this week's SEC filings. In his roles on the intelligence and health committees, Burr had access to the government's most highly classified information about threats to America's security and public health concerns.

Before his sell-off, Burr had assured the public that the federal government was well prepared to handle the virus. In a February 7 op-ed that he co-authored with another senator, he said "the United States today is better prepared than ever before to face emerging public health threats, like the coronavirus."

That month, however, according to a recording obtained by NPR, Burr had given a VIP group at an exclusive social club a much more dire preview of the economic impact of the coronavirus, warning it could curtail business travel, cause schools to be closed and result in the military mobilizing to compensate for overwhelmed hospitals.

Burr defended his actions, saying he relied solely on public information, including CNBC reports, to inform his trades and did not rely on information he obtained as a senator.

Alice Fisher, Burr's attorney, told ProPublica at the time that "Sen. Burr participated in the stock market based on public information and he did not coordinate his decision to trade on February 13 with Mr. Fauth."

Bipartisan Senate Panel Referred Trump Family Members Over Suspected Lying

Bipartisan leaders of the Senate Intelligence Committee last year notified the Department of Justice that members of President Donald Trump's family and close circle "might have presented misleading testimony" to the panel during its investigation into Russian interference in the 2016 election, the Washington Post reports.

According to the Post, then-Chairman Richard Burr (R-NC) and Vice Chairman Mark R. Warner (D-VA) referred a list of individuals, including Donald Trump Jr. and Jared Kushner to federal prosecutors after their accounts of a pre-election meeting with Russian lawyer Natalia Veselnitskaya "were contradicted by the president's former deputy campaign chairman Rick Gates" during former special counsel Robert Mueller's investigation.

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Sen. Burr Gives Up Intel Committee Chair As FBI Probe Intensifies

Reprinted with permission from ProPublica.

Sen. Richard Burr will be stepping aside as chairman of the Senate Intelligence Committee during the investigation into his stock trades, Senate Majority Leader Mitch McConnell announced Thursday.

“Senator Burr contacted me this morning to inform me of his decision," McConnell wrote in a statement. “We agreed that this decision would be in the best interests of the committee and will be effective at the end of the day tomorrow."

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Sen. Burr And Brother-in-Law Dumped Stocks On Same Day — Then Market Crashed

Reprinted with permission from ProPublica.

Sen. Richard Burr was not the only member of his family to sell off a significant portion of his stock holdings in February, ahead of the market crash spurred by coronavirus fears. On the same day Burr sold, his brother-in-law also dumped tens of thousands of dollars worth of shares. The market fell by more than 30 percent in the subsequent month.

Burr's brother-in-law, Gerald Fauth, who has a post on the National Mediation Board, sold between $97,000 and $280,000 worth of shares in six companies — including several that have been hit particularly hard in the market swoon and economic downturn.

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Sen.Burr Pushes Healthcare Industry Legislation While Trading Its Stocks

Reprinted with permission from ProPublica.

In his 15 years in the Senate, Richard Burr, a North Carolina Republican, has been one of the health care industry's staunchest friends.

Serving on the health care and finance committees, Burr advocated to end the tax on medical device makers, one of the industry's most-detested aspects of the 2010 Affordable Care Act. He pushed the Food and Drug Administration to speed up its approval process. As one of the most prominent Republican health care policy thinkers, he has sponsored or co-sponsored dozens of health-related bills, including a proposal to replace “Obamacare." He oversaw the implementation of major legislation to pump taxpayer money into private sector initiatives to address public health threats. “The industry feels very positive about Sen. Burr," the president of North Carolina's bioscience trade group said during Burr's last reelection campaign. “He's done a stellar job."

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Watchdogs Seek Probe Of Rep. Gaetz Over Dubious Lease Deal

A government watchdog group on Wednesday announced it had filed multiple complaints against Florida Republican Rep. Matt Gaetz, demanding an investigation into a lease agreement for congressional office space.

Politico reported last Friday that Gaetz rented office space in Florida for below market value from Collier Merrill — a Florida-based developer who Politico reported is a longtime friend and donor to Gaetz's campaign.

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Amid Pandemic Chaos, Burr And Graham Stand Out

North Carolina is never content playing second fiddle to any other state, for good or ill. Of course, that would be the case during a pandemic and its aftermath. A partial list: Any politicians out there being accused of taking advantage for personal gain? Check. Questions on how states will accommodate voters skittish about choosing between their health and their right to cast a ballot? Check. Fights over expanding Medicaid after a health crisis forces a hard look at who can and cannot count on insurance coverage? Check.

Oh, and a touch of Franklin Graham as a hero with reservations. Our state never disappoints.

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Sen. Burr Sold His Pricey Townhouse To Lobbyist Donor


The chairman of the Senate Intelligence Committee, Richard Burr, has come under fire in recent weeks for unloading stock holdings right before the market crashed on fears of coronavirus and for a timely sale of shares in an obscure Dutch fertilizer company.

Now the North Carolina Republican's 2017 sale of his Washington, D.C., home to a group led by a donor and powerful lobbyist who had business before Burr's committee is raising additional ethical questions.

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