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Report: Sen. Richard Burr, brother-in-law under investigation for possible insider trading

According to the ProPublica report, a new Securities and Exchange Commission (SEC) filing indicates that Sen. Burr had “material nonpublic information regarding the incoming economic impact of coronavirus.”
Published: Oct. 28, 2021 at 3:35 PM EDT|Updated: Oct. 28, 2021 at 7:05 PM EDT
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(WBTV) - A new report from ProPublica indicates that there is an ongoing insider trading investigation into the trades of North Carolina U.S. Senator Richard Burr and his brother-in-law.

According to the ProPublica report, a new Securities and Exchange Commission (SEC) filing indicates that Sen. Burr had “material nonpublic information regarding the incoming economic impact of coronavirus.”

In 2020, Sen. Burr was the subject of a Justice Department investigation into stock trades the senator made as the coronavirus first hit the United States. Sen. Burr reportedly sold off as much as $1.7 million in stocks just before the markets dropped due to coronavirus concerns.

According to the ProPublica report, the SEC says Sen. Burr called his brother-in-law Gerald Fauth, a member of the National Mediation Board, after the senator sold the stocks. The two reportedly talked for less than a minute.

And immediately after that, according to the ProPublica report, the SEC filing indicated that Fauth called his broker and sold stock that same day.

In early 2021, the United States Department of Justice ended its investigation into the stock trading of North Carolina Senator Richard Burr with no charges, and indicated that the case is now closed.

Sen. Burr issued a statement shortly after that news came out.

“Tonight, the Department of Justice informed me that it has concluded its review of my personal financial transactions conducted early last year. The case is now closed. I’m glad to hear it. My focus has been and will continue to be working for the people of North Carolina during this difficult time for our nation,” Sen. Burr said.

Although federal prosecutors decided not to charge Sen. Burr with any sort of crime, ProPublica’s new report says the recent SEC filings revealed that there is an ongoing insider trading investigation into both Burr and Fauth’s trades.

ProPublica says this information comes “as part of an effort by the SEC to force Fauth to comply with a subpoena that the agency said he has stonewalled for more than a year”.

“Whether Fauth was himself tipped with inside information from Senator Burr, and whether Fauth knew Senator Burr was violating his duties under the STOCK Act by conveying that information, are matters Fauth is uniquely positioned to speak to,” the SEC said in a filing.

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