Justice Department Probes Lawmaker Trades After Outbreak

(Bloomberg) -- The Justice Department is reviewing whether Senate Intelligence Chairman Richard Burr and other lawmakers made inappropriate stock trades based on non-public information before the widespread outbreak of the coronavirus in the U.S., according to a person familiar with the matter.

The FBI has contacted Burr, a North Carolina Republican, and is evaluating whether and when to reach out to other lawmakers, according to the person, who asked not to be identified discussing sensitive issues. The inquiry is still in its early stages and is being conducted in coordination with the Securities and Exchange Commission, according to CNN, which reported the review earlier.

Burr sold 33 stocks on Feb. 13 with a total value between $628,000 and $1.7 million, according to his financial disclosure form. Three of the assets he sold were in hotel companies, which have seen their value plummet as the coronavirus pandemic has drastically curtailed travel.

Burr and his office said the sales were unrelated to any information he received by virtue of his position as chairman of the Intelligence panel and he has called on the Senate Ethics Committee to review the trades.

Other senators who have come under scrutiny based on stock sales before the outbreak exploded in the U.S. include Dianne Feinstein, a Democrat from California, Georgia Republican Kelly Loeffler and Oklahoma Republican James Inhofe. The lawmakers have defended the transactions, saying they weren’t related to any information they received as part of their congressional duties.

Government watchdog groups have called for investigations into the senators, although former U.S. officials have said there’s little chance authorities could bring successful insider trading cases.

Feinstein didn’t sell any assets at issue, her husband did, according to her spokesman, Tom Mentzer.

“Their assets are entirely separate,” Mentzer said in a statement. “She has no knowledge, connection or role in his finances (aside from having to report them to the Senate), and her own assets (which aren’t at issue) are in a certified blind trust.”

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