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New: Loeffler Purchased Stock in Company “That Makes COVID-19 Protective Garments” After Senators-Only Coronavirus Briefing

“Unseemly” Trades Made While Unelected Megadonor Reassured Georgians “The Economy is Strong”

New reporting last night revealed unelected “political mega-donor” Senator Kelly Loeffler and her husband purchased stock in a company that “makes COVID-19 protective garments” after a senators-only coronavirus briefing. The purchase was one of several transactions under scrutiny, and follows earlier reports about up to millions of dollars in stocks she previously dumped. Loeffler’s trades were made as she downplayed the economic threat coronavirus posed, saying in a video “the economy is strong, & jobs are growing.”

Loeffler’s stock selloff scandal continues to spiral. Last week, independent watchdog groups called for investigations into Loeffler’s transactions and the SEC issued a “sharp warning” against trading on nonpublic information related to the coronavirus pandemic. The Department of Justice and SEC have launched an inquiry into senators’ suspicious selloffs, drawing more scrutiny of Loeffler’s “timely trades.” Already embroiled in a divisive and bitter intraparty feud with top Trump ally Congressman 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 with one even going as far as calling for her resignation.

“Georgia hospitals are at their breaking point and Georgians are losing their jobs, their businesses, and their retirement savings, yet apparently all Senator Loeffler could think about was her stock portfolio,” said DSCC spokesperson Helen Kalla. “Her appointment is proving to be a disaster for Republicans as they struggle to explain the actions of an appointed Senator who is becoming more of a liability by the day.”

IN CASE YOU MISSED IT:

Atlanta Journal-Constitution: Loeffler reports more stock sales amid insider trading allegations

By Tia Mitchell

March 31, 2020

Key Points:

  • U.S. Sen. Kelly Loeffler’s most recent financial disclosures show that millions of dollars in stocks were sold on her behalf at the same time Congress was dealing with the impact of the coronavirus.
  • The largest transactions — and the most politically problematic — involve $18.7 million in sales of Intercontinental Exchange stock in three separate deals dated Feb. 26 and March 11. Loeffler is a former executive with ICE, and her husband, Jeff Sprecher, is the CEO of the company, which owns the New York Stock Exchange among other financial marketplaces.
  • During the same time period reflected on reports filed late Tuesday, the couple also sold shares in retail stores such as Lululemon and T.J. Maxx and invested in a company that makes COVID-19 protective garments. The Atlanta Journal-Constitution got the first look at these reports, covering mid-February through mid-March and shedding new light on Loeffler’s financial transactions during the pandemic. 
  • The newer stock sales came as the broader markets were diving, and they are likely to fuel allegations that Georgia’s new senator used her insider knowledge about the severity of the pandemic to dump holdings while simultaneously releasing statements about the strength of the American economy and complimenting President Donald Trump on his response. 
  • The U.S. Department of Justice, in conjunction with the Securities and Exchange Commission, is looking into stock transactions by various lawmakers, CNN reported. That could include Loeffler, although her staff said recently that she has not been contacted.
  • Spokespeople for the Justice Department and the SEC both declined to comment. Investigations by the SEC are usually conducted in secret and not made public unless someone is accused of wrongdoing.
  • Because she is new to the Senate, Loeffler’s public disclosures only go back to the beginning of the year, but much of the sell-off happened after a Jan. 24 senators-only briefing that resulted in Loeffler’s public mention of the coronavirus.
  • Details of individual transactions are less important than the overall perception that senators were making investment decisions at the same time they were receiving private information about the coronavirus pandemic, said attorney Walter Jospin, who for three years served as director of the SEC’s regional office in Atlanta. He said the senators, their spouses and advisers are likely to face questions about whether members shared private information or directed transactions.
  • “I have no idea whether these senators violated the federal securities laws,” he said. “I am sure that the SEC will conduct a full and fair investigation. With that said, these trades were, in the context of a worldwide health and economic crisis, certainly unseemly.”

Read the full story here.

Wall Street Journal: Senator Reports $1.4 Million in Stock Trades During Coronavirus Panic

By James V. Grimaldi, Lindsay Wise and Tom McGinty

March 31, 2020

Key Points:

  • Sen. Kelly Loeffler and her husband purchased and sold about $1.4 million in stocks in the past month amid the coronavirus market panic. They suffered losses but limited the investment damage through some timely trades, according to a summary provided by the Georgia Republican’s re-election campaign.
  • In the latest filing, Ms. Loeffler reported that she and her husband bought about $590,000 of stock and sold about $845,000 of stock from Feb. 18 through March 13. If they had held the shares they sold through Monday, the stock would have been valued at $86,000 less than what they sold it for, according to the Journal analysis.
  • Ms. Loeffler is battling to hold on to her Senate seat. A GOP rival, Rep. Doug Collins, a four-term congressman, began hammering her over her stock trades in TV appearances and on social media after they were disclosed.
  • When Mr. Kemp appointed Ms. Loeffler, he hoped the wealthy business executive and political newcomer could win over key suburban and women voters as the state experiences an influx of younger people and minorities, many from the North.
  • Ms. Loeffler, 49 years old, is self-funding her Senate bid—an attractive prospect for national Republicans who would rather focus their resources on more at-risk incumbents in Colorado, Arizona and North Carolina. Now Ms. Loeffler’s wealth could become a political liability.
  • The entry into the contest of Mr. Collins, a Trump loyalist who had also sought the Senate appointment, alarmed some Republicans in Georgia and Washington worried that an intraparty battle could hurt chances of holding the seat, and could put the GOP’s control of the Senate at risk.

Read the full story here.

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