DOJ, SEC Launching Probe of GOP Senators’ Stock Selloffs Following Private Coronavirus Briefing [CNN]

Late last night, CNN broke the news that the Department of Justice and Securities and Exchange Commission are launching an inquiry into stock transactions made by Republican senators including unelected “political mega-donor” Kelly Loeffler following an exclusive, senators-only briefing on the emerging coronavirus outbreak.

This latest development comes after Senator Loeffler spent all last week attempting to defend her stock selloff scandal as independent watchdog groups called for investigations and the SEC issued a “sharp warning” against trading on nonpublic information related to the coronavirus pandemic. Already embroiled in a divisive and bitter intraparty feud with top Trump ally Rep. Doug Collins to keep her seat, Loeffler is now watching support from deep-pocketed conservative groups dry up as Georgia Republicans publicly fret about her scandal causing down-ticket damage and even going as far as calling for her resignation.

“In her short time in office, unelected mega-donor Senator Loeffler has been constantly under scrutiny for conflicts of interests and swampy ethical issues — jeopardizing her standing among Georgia voters as she faces a brutal internecine battle to keep the senate seat she bought,” said DSCC spokesperson Helen Kalla. “It’s appropriate for both the Senate Ethics Committee and law enforcement authorities to thoroughly investigate and uncover the facts behind Senator Loeffler’s questionable stock transactions during a public health crisis.”

IN CASE YOU MISSED IT:

CNN: Exclusive: Justice Department reviews stock trades by lawmakers after coronavirus briefings

By David Shortell, Evan Perez, Jeremy Herb and Kara Scannell

March 29, 2020

Key Points:

• The Justice Department has started to probe a series of stock transactions made by lawmakers ahead of the sharp market downturn stemming from the spread of coronavirus, according to two people familiar with the matter.

• The inquiry, which is still in its early stages and being done in coordination with the Securities and Exchange Commission, has so far included outreach from the FBI to at least one lawmaker, Sen. Richard Burr, seeking information about the trades, according to one of the sources.

• Public scrutiny of the lawmakers’ market activity has centered on whether members of Congress sought to profit from the information they obtained in non-public briefings about the virus epidemic.

• Congress passed the Stock Act in 2012, which made it illegal for lawmakers to use inside information for financial benefit.

• GOP Sen. Kelly Loeffler of Georgia and her husband sold 27 stocks valued between $1.275 million and $3.1 million from January 24 through February 14, according to Senate records.

• They also purchased three stocks at a value of $450,000-$1 million, including shares in Citrix, a software company that’s gained approximately 15% in value since Loeffler and her husband bought the stock last month.

• Loeffler, who was appointed to her seat in December and was sworn in in early January, has denied having any knowledge of the stock sales, saying she uses a third-party financial adviser and did not learn of the trades until later. Loeffler’s husband, Jeffrey Sprecher, is chairman of the New York Stock Exchange.

Read the full story here.

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