Tuesday, April 7, 2020

Five Senators Accused of Insider Trading

Five United States senators, four Republicans and one Democrat, stand accused of insider trading this morning after dumping millions of dollars in stocks – some in industries hit hardest by the coronavirus pandemic – before the outbreak shook the market.

Republicans Richard Burr (R-NC), Kelly Loeffler (R-GA), Ron Johnson (R-WI), James Inhofe (R-OK), and Democrat Diane Feinstein (D-CA) sold substantial stock-holdings after the Senate Intelligence Committee held a classified briefing about COVID-19 at the end of January.

Pundits on both sides of the aisle are calling for their proverbial heads if the allegations are proven.

Burr chairs the Intelligence Committee. He dumped between $628,000 and $1.72 million on February 13.

Feinstein, the Intelligence Committee’s ranking member, jettisoned between $1.5 million and $6 million previously invested in biotech company Allogene Therapeutics between the day of the meeting and February 18. 

Loeffler also attended the meeting and reportedly sold between $50,001 and $100,000 worth of stock in Resideo Technologies. The price of Resideo has plummeted since the market’s coronavirus slide began. Loeffler also made two dozen stock sales, which included purchasing between $100,00 and $250,000 worth of shares in Citrix. The multinational software company, which specializes in telecommuting technology, has seen a five percent uptick in value since her purchase.

Loeffler is married to Jeffrey Sprecher – the chairman of the New York Stock Exchange.

Around the same time, Inhofe sold nearly $200,000 in stocks.

Johnson officially disclosed on a United States Senate Financial Disclosure that he sold between $5 and $25 million in his share of his family’s privately-held company, Pacur LLC, on March 2.

However, Johnson vigorously defended his decision, calling it a multi-year initiative starting in 2018.

The reaction has been highly critical. (New York Daily News)

If Burr quits, Democratic Gov. Roy Cooper would appoint a replacement who would serve until the November general election, but it would have to be a Republican.

Burr was one of just three senators to vote against a 2012 law banning lawmakers from trading on information they receive through their official capacities.

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53 COMMENTS

    • When did it change? I used to see a smiling nasty nancy s face on Tv talking about how much she made on insider trading! Not been that long ago! Yeah I forget the double standard! OK for rats and not for gop?

    • The moment I read this posting i immediately knew the one ‘dumbocrap’ involved was good ole ‘fart’ faced dianne feinstein, California’s # one thieving slug. Anyone who thinks she sold almost a million dollars worth of stock before she knew the market hit the dumper needs to go back to school and get their heads out of their asses. She along with ‘nasty’ nancy ‘pigliosi and who can’t forget her thieving ass wipe of a nephew, gavin ‘giveaway the store for free’ newsom need to go as these three have done absolutely ZILCH to help the residents of California and improve conditions here. I could go on but what’s the point? The public especially the residents of the one time great ‘golden state’ of California that under these slugs has become one huge open air third world toilet. And the real outrage, these ass wipes live in walled compounds far away from the all the BULLS**T they’ve foisted on the rest of us. Where’s the outrage? Remember this in November and do whatever’s possible to get rid of these thieves by voting them and all liberals out of office!

  1. This raises a big question—–Where did the dollars come from to, first of all, purchase these stocks?—-That question will probably never be answered, just a thought.

  2. All four should resign. ALL politicians crooked as other countries. This is why they spend millions && millions of dollars to get elected.

    • I am NOT a senatorObviously] and I saw the writing on the wall way back when they announced the virus and sold a bunch of stocks KNOWING they would crash. Anyone who invests does research[or they should and are usually ahead of the curve. It is wise,it is prudent. I the used the money to save some,buy some less exposed sectors and one drug company ABBVIE NOT because I had any insider info but because they are one of the best,innovative and knew they would be right on it. Investigate but don’t start pointing fingers yet. Do the research on their sell orders. Would you NOT expect the wife of the head of a stock exchange to NOT listen to her husband’s advice? OR it could be insider trading we have to wait and see what shakes out.My question is more HOW do they have MILLIONS as Government employees barring who they are married to

    • Hey little James—hold up your hand again and slowly count 1-2-3-4-5 ….1. 2. 3. 4. 5
      Now practice
      And all these usual stupid comments from people who don’t t know diddley…aboit the circumstances..many Americans are just plain stupid These days…

  3. These members of Congress should be kicked out of Congress, and then arrested! What they did, and have done for years, has caused many hardworking Americans to lose everything that they have. These greedy, low life thugs who are running our country are the worse kind of criminals! Totally disgusting and sickening!

    • Isn’t this what happened to Martha Stewart? She did some insider trading and went to jail for it. Get on the Repubs and demcrats now.

  4. These people need to be treated and act like the rest of us. They have a salary and are not royalty. If they use their office for personal gain as has been practice for many years, they need to go, regardless of party. Drain the swamp.

  5. You should not get weathly serving your Country in Congress. These people come into Congress with minimal salaries and leave million and billionaires. If we had term limits this doesn’t happen. These Congressmen, if true, should get the max if convicted. Martha Stewart sold 200,000 worth of her stock and got 2 years for lying to the FBI. The Clinton and Obama Cabal has repeatedly lied to the FBI and Congress. Crickets.

  6. So, conservatives could lose the Senate thanks to stupidity and greed. Will I live to see the day Republicans STOP shooting themselves in the foot???

  7. Look at family members too, net their kids all sold at same time too. This is as close to treason as I can fathom. May not be able to jail Senators, but their kids should all be looking out from behind bars.

  8. Martha Stewart served some time for this sort of thing. Looking like more of the “one set of laws for common folks and another for the elected thinking elitists.” PRISON TIME FOR ALL THREE AND TERM LIMITS!

    • Martha Stewart was convicted of lying to the federal investigators. When the federal Gestapo comes calling do not say anything to them. It is OK for them to lie to you and try to trick you into making a false statement, but if you lie to them, it is a felony. What a load of crap.

  9. Poor Martha she was the only woman in America that actually LIKED to clean and cook LOL Then they threw her in jail. Too funny

    • I never thought of it that way Deborah, thanks for pointing that out. They sacrificed a stereotypical woman for the very same behavior, actually I believe a lot more innocent behavior. Let see how our leaders are treated vs their subjects in all this. Not that I’ll ever see it, but I think Feinstein would look good in Orange. Admittedly, I lean a little right, but I think they ALL, Republicans too, including the any that will be named later if they keep looking, should be jailed. Apply ALL laws equally. ALL.

  10. we would be fired. These are supposed to be our leaders. Let’s push for term limits and get rid of career politicians, getting rich off of the tax payers

  11. Well, isn’t that something, just this past year one of our congressmen of upstate ny was charged for the same inside trading ,was charged and sentenced for 3 years, it was on all the networks for over 2 years this year he went to prison. now with the fake news has this in their key board hands all these republicans will be hung by the feet, but the dems involved espicially finesteine of cal will most likely walk with nothing done the dems have done that for decades. I wonder about maxen watters of california, she and finesteine are, well you know, i also wonder about pelosi you know she has millions of stocks along with her son who, by the way was also involved with a ukraine company and others. I hope durham gets his report done soon…

  12. question , how do you have that kind of money to buy and sell stocks when your yearly salary is 175 k ?? Our country has been completely sold out since the days of bill clinton . Our country is done . The only hope we have is GOD Almighty and President Trump . Thank GOD for President Trump , His Family and All who support Him .

  13. What else is new They are just following The Clinton model steal as much as you can as fast as you can! Who cares about the poor Haitians, I can only hope there is a hell for these people

  14. I am an average person who also sold off stock before a lot of the market tanked based on the information I seeing and reading! As much as I do not like politicians they have a right to buy and sell investments just like the rest of us.

  15. Folk’s, please don’t hold your breath waiting for something to be done about these criminals! Sorry, but in a two tiered justice system that just doesn’t happen! Have a nice day and remember, ‘Laws are for thee but not for me!’ the credo of corrupt politicians around the world!

  16. Beborah. In answer to you question would I not listen to my spouse ? My answer is yes until it caused me to break a law I had swore to uphold. That is what she and the others did if this is true. Like was said Martha was jailed for doing that ans she did not hold an elected office so she didn’t break a law except maybe a lie to the FBI and who can say she did that but an FBI agent . Why don’t people uphold the people they like when they break laws and jump up and down when others they don’t like do exactly the same thing. That is why these things happen.

  17. They all need to Go.
    Feinstein has been wheeling and dealing with her husband Richard Bloom for decades now. RebBill Gertz book Deceiving the Sky.

  18. That’s how these greedy a””holes get so rich on $170,000- $200,000 a year salaries with at least 2 households to maintain and all the commuting. They sit in on “Classified” meetings then trade accordingly. You don’t really think they spent all that money to get elected because they were so concerned about you – do you?

  19. To those who think Congress are ‘ Investors’ at large and can sell stock when they want, if you were a person who is not afforded information not generally available to the public, this is called insider trading and is illegal. When any senator sits in on a government meeting that details the ability of a company to respond to a crisis and that senator owns stock in that company, if they sell right after the meeting they are committing a crime. As in all business’s in the U.S. a person who takes a job and then leaves the company with confidential information from that company and take it to another company, that is a ‘Conflict of Interest’ and is illegal in most cases. Stop protecting the criminals. These senators claim the trades were in a trust and they had no knowledge of the trade. That is a ignorant answer and they use it to cover the asses and they also use this answer to hide their true wealth as they do not report all their trusts. It’s their responsibility that the trust does not commit a criminal act but they claim not knowledge, again BS…. Congress needs to pass the bill that makes it totally illegal to make any trades of any stock of companies that are discussed in government meetings. PERIOD.

  20. Isn’t this what happened to Martha Stewart? She did some insider trading and went to jail for it. Get on the Repubs and demcrats now.

  21. Anyone with half a brain would know that stocks would drop due to our Corona outbreak. Get over it they did nothing wrong, A little greedy maybe but smart business move. Lets worry about keeping this disease under control. Lets watch and see where America is weak in handling this emergency and what we can do to make it better if it should happen again in the future, both at the personal level, local level, state and federal level. Grow up people.

  22. I know lots of people not in these congressional briefings that were shorting the heck out of casinos, airlines, cruise ships around that time. By mid-Feb it was not a big secret that the Chinese virus could potentially cause a lot of disruptions. I am just mad I did not take the advise to sell all my stock in mid-February. I did buy ZM, which specializes in video conferencing, and am up 14% while the rest of the market goes down in flames. I had no special access to that January senate briefing.

    What in the heck does Johnson selling shares in his family’s privately held company in March have to do with this senate meeting in January. That seems like a real witch hunt.

    That said, I think anyone in a position where they have access to confidential information, should have their portfolio professionally managed to avoid the appearance of impropriety.

  23. This tells me that they knew about the impending crisis days before they let the rest of us know. They knew not only when it would be told us but the extent and severity of the virus. To be sure it was known by others an extended time before the senators. The laws are of little consequence because many lives could have been saved had we started moving before the actual known outbreak. These are only the ones known to have profited by the early sale. We must have penalties that ate tied to people in office using information for profit. I would expand this to anyone in their offices including family members. Such actions should warrant removal from office. Any removal would include the restriction from ever holding another public office elected or appointed. Any that are hired would also loose any pension rights. Penalties must make it very costly to violate the public trust. ……..Grampa

  24. No surprise here! Does anyone actually believe these politicans main goal is to serve the people. I am talking about all politicans. But I am more worried about politicans that become millionaires than I am of millionaires who become politicans.

  25. I heard about the coronavirus when it was first reported and sold off some of my stock. It was a no-brainer. Didn’t need inside help.

  26. Having been subpoenaed to and testified in front of a Grand Jury as an expert in securities trading, and having been on the NYSE payroll as part of 13 years in the business, I would like to give this as my perspective: Insider trading is defined as trading on confidential information before it is disclosed to the public, such as a pending earnings surprise (both good or bad), a generous offer for a merger, perhaps getting FDA approval for a new drug. That there was a virus emanating from China was widely reported prior to the meeting these men attended and I am confident that the inside information given did not include the words that “the market will have it worst day in 30 years, so dump your holdings now!”. No commodity trader I met ignored weather reports when it came to taking a position in wheat. You listened to the facts and make informed decisions. Calling a sound business decision in this case as “insider trading”, in my opinion is totally political and gas-lighting the uninformed public.

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