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Sen. Perdue Sold Home To Finance Industry Official Who Lobbied Senate

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

Sen. David Perdue, R-Ga., sold his Washington, D.C., home last year to a brokerage industry official whose organization is under the purview of a committee Perdue sits on.

The deal was made off market, without the home being listed for sale publicly.

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Sen. Perdue Quietly Pushed Big Tax Break For Rich Sports Team Owners

Reprinted with permission from ProPublica

Sen. David Perdue (R-GA) privately pushed Treasury Secretary Steve Mnuchin to give wealthy sports owners a lucrative tax break last year, according to a previously unreported letter obtained by ProPublica.

After the 2017 tax bill championed by President Donald Trump passed, Mnuchin and the Treasury had to write rules on how the legislation would work in practice.

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Justice Department Weakens Longstanding Rule Against Election Interference By Prosecutors

Reprinted with permission from ProPublica

The Department of Justice has weakened its long-standing prohibition against interfering in elections, according to two department officials.

Avoiding election interference is the overarching principle of DOJ policy on voting-related crimes. In place since at least 1980, the policy generally bars prosecutors not only from making any announcement about ongoing investigations close to an election but also from taking public steps — such as an arrest or a raid — before a vote is finalized because the publicity could tip the balance of a race.

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US Attorney Broke Justice Department Policy In Absentee Ballot Probe

Reprinted with permission from ProPublica

When the Justice Department recently publicized an ongoing investigation into potentially improperly discarded Trump ballots, critics accused it of violating long-standing agency policy against interfering in an election.

But the unusual decision to publicly detail the Pennsylvania case may also have run afoul of guidelines that Attorney General William Barr himself issued to federal prosecutors this year, according to a memo obtained by ProPublica.

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Richest GOP Donor In South Dakota Was Probed For Child Pornography

Reprinted with permission from ProPublica

T. Denny Sanford, the richest man in South Dakota and a major donor to children's charities, was being investigated for possible possession of child pornography, according to four people familiar with the probe.

Investigators with the South Dakota attorney general's Division of Criminal Investigation obtained a search warrant as part of the probe, according to two of the people, who spoke on the condition of anonymity. They said the case was referred to the Department of Justice for further investigation.

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Trump Weakened Key Civil Rights Agency When It Is Needed Most

Reprinted with permission from ProPublica

In recent weeks, as protests against police violence and systemic racism have swept across the nation, a key federal civil rights agency — an agency created to bridge racial divides — has been largely absent.

Dubbed “America's Peacemaker," the Community Relations Service was established in 1964 as civil rights protesters across the South came under attack. The service, which is part of the Justice Department, is credited with helping to avert bloodshed during some of the most contentious demonstrations of the 1960s.

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How Fed Bailout Greased A Top Treasury Official’s Family Financial Firm

Reprinted with permission from ProPublica.

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin have become the public faces of the $3 trillion federal coronavirus bailout. Behind the scenes, however, the Treasury's responsibilities have fallen largely to the 42-year-old deputy secretary, Justin Muzinich.

A major beneficiary of that bailout so far: Muzinich & Co., the asset manager founded by his father where Justin served as president before joining the administration. He reported owning a stake worth at least $60 million when he entered government in 2017.

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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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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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FBI Probing Sen. Burr Over Pandemic Stock Sales

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

Federal authorities are scrutinizing Sen. Richard Burr's stock sell-off before the market crash triggered by the coronavirus outbreak, CNN reported on Sunday.

The news comes less than two weeks after ProPublica and the Center for Responsive Politics reported that Burr, a Republican from North Carolina, unloaded between $628,000 and $1.72 million of his holdings on Feb. 13 in 33 separate transactions, a significant portion of his total portfolio. The sales came soon after he offered public assurances that the government was ready to battle the coronavirus.

According to CNN, the FBI has reached out to Burr seeking information about the trades. The inquiry is in its early stages and is being done in coordination with the Securities and Exchange Commission.

Alice Fisher, an attorney advising Burr, declined to confirm the investigation, but she said in a statement to ProPublica that "Senator Burr welcomes a thorough review of the facts in this matter, which will establish that his actions were appropriate."

"The law is clear that any American — including a Senator — may participate in the stock market based on public information, as Senator Burr did," she said. "When this issue arose, Senator Burr immediately asked the Senate Ethics Committee to conduct a complete review, and he will cooperate with that review as well as any other appropriate inquiry."

The FBI and SEC declined comment.

The CNN report suggested that the Justice Department was scrutinizing stock trades made by multiple lawmakers. After the ProPublica story on Burr, various media outlets reported on other senators who also sold stock before the downturn, including a Daily Beast story on GOP Sen. Kelly Loeffler of Georgia and her husband selling between $1.27 million and $3.1 million of stock. They also purchased shares of Citrix, a work-from-home software company.

Loeffler has said the trades were made without her knowledge by a third-party financial adviser. A Loeffler spokesperson told CNN that Loeffler has not been contacted by the FBI.

Burr has defended his sell-off, saying he relied solely on public information to inform his trades, including CNBC reports, and did not rely on information he obtained as chair of the Senate Intelligence Committee.

His stock sales drew widespread outrage, resulting in calls for his resignation from prominent Republicans and Democrats. Three House Democrats have introduced legislation to bar lawmakers from trading individual stocks.

House Democrats Push For Tougher Oversight Of Regulators’ Conflicts Of Interest

Reprinted with permission from ProPublica.

A group of House Democrats introduced a bill on Wednesday that would require federal officials to disclose any potential conflicts of interest before they implement significant changes in U.S. regulations.

The lawmakers said the legislation is intended to alert the public if those involved in the decisions, including the president and his top advisers, would personally profit from revising or replacing the rules.

“President Trump ran and campaigned on this idea of draining the swamp,” said the bill’s author, Rep. David Cicilline, D-R.I. “We see, in fact, he has filled the swamp with people who have deep business interests and may be using their positions in the government to advance their financial interests.”

Among those who would have to project how much they would personally benefit from any particular regulatory changes are members of the new deregulation teams Trump has installed at federal agencies. The groups are tasked with weakening or eliminating government rules found to be overly burdensome for businesses.

The Congress members cited a recent investigation by ProPublica and The New York Times revealing that members of these deregulation teams have deep industry ties and are reviewing regulations their previous employers sought to weaken or kill. Appointees include lawyers who represented businesses in cases against government regulators, staff members of political groups raising so-called dark money and employees of industry-funded organizations opposed to environmental rules. At least four were registered to lobby the agencies they now work for and at least two may be positioned to profit if certain regulations are undone.

Federal agencies have defended their deregulation teams, saying appointees are adhering to strict ethics rules and generally avoiding topics that would narrowly affect recent former employers. The Trump administration has said its deregulatory push is necessary because similar reviews of existing rules by past administrations were not rigorous enough.

Cicilline’s bill, co-sponsored by Reps. John Conyers, Raul Grijalva, Lloyd Doggett, Gerry Connolly and Peter DeFazio — all Democrats — would require “an assessment and quantification” of the conflicts of interest for any major regulatory action. The report would disclose any possible personal benefit for the president, his senior advisers and members of the deregulation teams, along with the heads of the agency issuing the rule, the Office of Management and Budget and the Office of Information and Regulatory Affairs.

Though ProPublica and the Times have identified nearly three dozen deregulation team members with potential conflicts, a full vetting of industry connections has been difficult because some agencies have declined to provide information about the appointees — in many cases, not even their names.

Cicilline was among a group of Congress members who wrote a letter to the White House in August calling on the administration to release the names of all deregulation team members as well as documents relating to their potential conflicts of interest.

He said they have received no response. “This sadly has become the practice of this administration to routinely ignore members of Congress. That’s very disturbing to me and other members,” Cicilline said.

The congressman does not yet have any Republican support for his legislation, which would be needed for it to pass. “One would hope that shining light on this would be a bipartisan issue,” Cicilline said. Members of the House Republican leadership didn’t immediately return requests for comment.

The deregulation teams are part of Trump’s push to cut red tape across government, and have created a new avenue of influence for industries trying to kill rules they say hurt profits, depress job creation and raise prices. Environmental, consumer and other liberal groups have argued such regulations protect the public, keeping drinking water clean and roads safe, for example.

Among the appointees are Byron Brown, who is a member of the deregulation task force at the Environmental Protection Agency. He is married to a senior government affairs manager for the Hess Corporation, an oil and gas company regulated by the EPA.

The agency has declined to say whether Brown or his wife own shares in Hess, though an agency ethics official said Brown had recused himself from evaluating regulations affecting the company. The agency declined to say whether Brown would also recuse himself from issues affecting the American Petroleum Institute, where his wife’s company is a member. The association has lobbied to ease Obama-era natural gas rules, complaining in a recent letter to Brown’s team about an “unprecedented level of federal regulatory actions targeting our industry.”

Before she led the deregulation team at the Department of Housing and Urban Development, Maren Kasper was a director at Roofstock, an online marketplace for investors in single-family rental properties. Financial disclosure records show that Kasper owned a stake in the company worth up to $50,000.

Changes at HUD could increase investor interest in rental homes, affecting a company like Roofstock. The agency, for example, oversees the federal government’s Section 8 subsidies program for low-income renters. Ethics officials allowed Kasper to keep her stake during her short tenure on the task force, but she pledged not to take actions that would affect the company.

Header image: Rep. David Cicilline, D-R.I. (Bill Clark/Roll Call/Via Getty Images)