RECAP: Loeffler, Perdue Made Stock Trades Same Day As Private Coronavirus Briefing

Senators’ “Heavy Trading” Protected Their Personal Fortunes, Included Investments In Company That Makes COVID-19 Gear

Both of Georgia’s Republican senators began their “heavy trading” the very same day as a private coronavirus briefing and later offloaded shares in industries hit hard by the pandemic, including travel and tourism, while publicly downplaying the threat the virus posed. 

Here are just some of the senators’ “timely trades”: 

• Unelected Senator Kelly Loeffler and Senator David Perdue reported stock purchases in a company that “makes COVID-19 protective garments”

• Senator Loeffler dumped stock in an online travel booking company right before President Trump announced a ban on flights from Europe to the United States and online travel reservations “collapsed” due to the coronavirus pandemic.

• Senator Perdue “continued to sell off shares of Caesar[s] Entertainment, the casino company whose properties were shuttered as the virus spread” while investing in streaming service Netflix as millions of Americans are stuck at home. 

Both Perdue and Loeffler have insisted that their trades are handled by “third-party advisors” without their knowledge, but neither have provided proof that they play no role in their trades. This secrecy has drawn widespread scrutiny, bipartisan backlash, calls for investigations, and concerns about down-ticket damage from Georgia Republicans. Loeffler’s scandal has become so toxic that Mitch McConnell was forced to clarify through a spokesperson that he still supports her.

“Senators Loeffler and Perdue continue to hide basic information about who handles their stock portfolios, but they’ve made one thing crystal clear: they were apparently more focused on their financial self-interest than helping Georgia families and businesses,” said DSCC spokesperson Helen Kalla. “Georgians deserve better than these self-serving senators who are always looking out for number one instead of putting their constituents first.”

Here’s a recap of recent coverage of these Georgia senators’ stock trading scandals:

Atlanta Journal-Constitution: David Perdue’s stock trading saw an uptick as coronavirus took hold

• “U.S. Sen. David Perdue’s financial portfolio saw heavy trading during the month of March, a period during which Congress passed three different spending bills to address the spread of COVID-19 and the markets took a turn for the worse.

• “The report lists 112 transactions, including 76 stock purchases costing as much as $1.8 million and 34 sales worth up to $825,000. Compared with the 13-month period before the coronavirus swept across America, Perdue’s portfolio activity has increased nearly threefold.”

Washington Post: The young and eventful Senate career of wealthy Georgia businesswoman Kelly Loeffler

• “‘I can’t say anything that I would have done differently,’ the 49-year-old senator told The Washington Post, reflecting on her stock trades.

• “‘Who are these third-party advisers?’ Fox News Channel host, Ed Henry, asked during Loeffler’s first televised interview. She ignored the query, saying ‘Well certainly I’m not involved in the decisions around buying and selling.’

• “CNBC got nowhere asking the same question. Fox News Channel host Tucker Carlson — who has made headlines by calling for Burr’s resignation and prosecution — asked twice with no luck. She wouldn’t identify them for this article, either.”

Atlanta Journal-Constitution: Questions remain about who is handling Kelly Loeffler’s stock transactions

• “U.S. Sen. Kelly Loeffler has provided no proof that financial advisers making stock transactions on her behalf have total control over decision-making.

• “To this day, however, Loeffler has not provided details about how her portfolio is managed and who does that work. She won’t name her advisers or say what company they work for or disclose what kind of agreement she has with them. 

• “Loeffler also has not said whether she or her husband, Jeff Sprecher, provided these consultants with general directions about how they want their money invested or if the advisers created an investment strategy policy for the couple.”

Bloomberg: Georgia Senator Sold Travel Shares Ahead of Trump Flight Ban

• “Senator Kelly Loeffler sold a total of $46,027 worth of stock in an online travel company in the day leading up to President Donald Trump’s announcement of a ban on most European travel to the U.S.”

New York Times: Loeffler’s Wealth Becomes a Risk as Rivals Charge She Profited on the Coronavirus

• “Now, amid an economic crisis brought on by the coronavirus pandemic, Ms. Loeffler’s wealth is threatening to become a major political liability. She is facing questions about whether, in actively trading millions of dollars in stocks over the past couple of months, she and her husband have profited off the crisis based on information she received through her position as a senator.”

AP: Georgia Sen. Loeffler gets renewed scrutiny over stock moves

• “The new purchases disclosed by Loeffler include the purchase of DuPont stock, a company that could see profits soar from the sale of protective equipment as hospitals search for desperately needed supply….Their latest financial moves are likely to give more ammunition to critics of the newly appointed senator, who is on the ballot this year.”

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

• “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.”

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

• “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.”

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

• “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.

• “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.”

McClatchy: Georgia senator’s stock sales could cause trouble for Republicans in special election

• “Republicans in Washington fear that an ugly fight between Loeffler and Collins could cause the party to lose the Senate seat in a special election in November, in which Republicans and Democrats will compete against each other on a single ballot. 

• “As Loeffler’s detractors amp up their efforts, supporters who have run ads on her behalf in the past are now turning their attention elsewhere at a pivotal moment in her campaign.”

CNBC: SEC warns on coronavirus insider trading after stock sales by Sen. Loeffler and NYSE chief husband raise eyebrows

• “The Securities and Exchange Commission on Monday issued a sharp warning against trading on non-public information related to the coronavirus —  a caution that came days after news of recent stock sales by the CEO of the New York Stock Exchange and his senator wife sparked widespread criticism and calls for investigations.

• “Sprecher and Loeffler’s trades, involving sales of up to $3 million worth of securities, came in the weeks before stock market indexes dramatically fell in value due to the coronavirus pandemic, and on the heels of a private, all-senators briefing on the virus outbreak from Trump administration health officials that Loeffler attended on Jan. 24.”

Additional Coverage

• Daily Beast: Sen. Kelly Loeffler Dumped Millions in Stock After Coronavirus Briefing
• Atlanta Journal-Constitution: Loeffler faces backlash over stock trades after coronavirus briefing
• Atlanta Journal-Constitution: In an economic free fall, wealth becomes a double-edged sword for Kelly Loeffler
• POLITICO: Loeffler stock trades roil Georgia special election
• 11Alive: Georgia Senators Perdue, Loeffler stock trades under fire
• New York Times: Editorial: Did Richard Burr and Kelly Loeffler Profit From the Pandemic?
• National Journal: Money can’t buy you love in politics
• The Hill: Loeffler under fire for stock trades amid coronavirus outbreak

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