Peter Jankowski
2020-05-15 04:19:34 UTC
WASHINGTON Federal agents seized a cellphone belonging to a prominent
Republican senator on Wednesday night as part of the Justice Departments
investigation into controversial stock trades he made as the novel
coronavirus first struck the U.S., a law enforcement official said.
Sen. Richard Burr of North Carolina, the chairman of the Senate
Intelligence Committee, turned over his phone to agents after they served
a search warrant on the lawmaker at his residence in the Washington area,
the official said, speaking on condition of anonymity to discuss a law
enforcement action.
The seizure represents a significant escalation in the investigation into
whether Burr violated a law preventing members of Congress from trading on
insider information they have gleaned from their official work.
To obtain a search warrant, federal agents and prosecutors must persuade a
judge they have probable cause to believe a crime has been committed. The
law enforcement official said the Justice Department is examining Burrs
communications with his broker.
Such a warrant being served on a sitting U.S. senator would require
approval from the highest ranks of the Justice Department and is a step
that would not be taken lightly. Kerri Kupec, a Justice Department
spokeswoman, declined to comment.
A second law enforcement official said FBI agents served a warrant in
recent days on Apple to obtain information from Burrs iCloud account and
said agents used data obtained from the California-based company as part
of the evidence used to obtain the warrant for the senators phone.
Burr sold a significant percentage of his stock portfolio in 33 different
transactions on Feb. 13, just as his committee was receiving daily
coronavirus briefings and a week before the stock market declined sharply.
Much of the stock was invested in businesses that in subsequent weeks were
hit hard by the plunging market.
Burr and other senators received briefings from U.S. public health
officials before the stock sales.
A spokesperson for the FBI did not return phone messages seeking comment.
A spokeswoman for Burr declined to comment. Burr has said he does not plan
to run for reelection in 2022.
Burrs sell-off which was publicly disclosed in ranges amounted to
between $628,000 and $1.72 million. The stock trades were first reported
by the Center for Responsive Politics and ProPublica.
After the sales became public, Burr said that he would ask the Senate
Ethics Committee to review them.
Burr is not the only senator who has come under fire for dumping stock as
the virus neared the United States.
In late February and early March, Sen. Kelly Loeffler (R-Ga.) sold stocks
valued at between $1.25 million and $3.1 million in companies that later
dropped significantly, including ExxonMobil. She also bought shares in
Citrix, which makes telework software.
Loeffler, who was appointed to her seat to fill a vacancy and faces an
election later this year, said after the sales became public that she and
her husband would divest all individual stocks.
Burr, a longtime supporter of federal programs responsible for dealing
with a pandemic, sits on two Senate committees that got early briefings on
the coronavirus the Intelligence Committee and the Senate committee that
handles health issues.
The health committee received a briefing on the virus on Feb. 12, one day
before his stock trades.
The same day Burr sold his stocks, Burrs brother-in-law, Gerald Fauth,
sold between $97,000 and $280,000 worth of six stocks, according to
documents filed with the Office of Government Ethics. Fauth serves on the
National Mediation Board, which provides mediation for labor disputes in
the aviation and rail industries.
Burr has denied coordinating trading with his brother-in-law.
In 2012, Congress prohibited lawmakers from acting on intelligence they
learn because of their privileged position, such as briefings with high-
level federal officials.
Under the STOCK Act, lawmakers are required to disclose their stock market
activity but are still allowed to own stock, even in industries they might
oversee.
The law passed the Senate in 2012 in a 96-3 vote. Among the three senators
to oppose the bill was Burr.
Times staff writer Sarah D. Wire contributed to this report.
https://www.latimes.com/politics/story/2020-05-13/fbi-serves-warrant-on-
senator-stock-investigation
Republican senator on Wednesday night as part of the Justice Departments
investigation into controversial stock trades he made as the novel
coronavirus first struck the U.S., a law enforcement official said.
Sen. Richard Burr of North Carolina, the chairman of the Senate
Intelligence Committee, turned over his phone to agents after they served
a search warrant on the lawmaker at his residence in the Washington area,
the official said, speaking on condition of anonymity to discuss a law
enforcement action.
The seizure represents a significant escalation in the investigation into
whether Burr violated a law preventing members of Congress from trading on
insider information they have gleaned from their official work.
To obtain a search warrant, federal agents and prosecutors must persuade a
judge they have probable cause to believe a crime has been committed. The
law enforcement official said the Justice Department is examining Burrs
communications with his broker.
Such a warrant being served on a sitting U.S. senator would require
approval from the highest ranks of the Justice Department and is a step
that would not be taken lightly. Kerri Kupec, a Justice Department
spokeswoman, declined to comment.
A second law enforcement official said FBI agents served a warrant in
recent days on Apple to obtain information from Burrs iCloud account and
said agents used data obtained from the California-based company as part
of the evidence used to obtain the warrant for the senators phone.
Burr sold a significant percentage of his stock portfolio in 33 different
transactions on Feb. 13, just as his committee was receiving daily
coronavirus briefings and a week before the stock market declined sharply.
Much of the stock was invested in businesses that in subsequent weeks were
hit hard by the plunging market.
Burr and other senators received briefings from U.S. public health
officials before the stock sales.
A spokesperson for the FBI did not return phone messages seeking comment.
A spokeswoman for Burr declined to comment. Burr has said he does not plan
to run for reelection in 2022.
Burrs sell-off which was publicly disclosed in ranges amounted to
between $628,000 and $1.72 million. The stock trades were first reported
by the Center for Responsive Politics and ProPublica.
After the sales became public, Burr said that he would ask the Senate
Ethics Committee to review them.
Burr is not the only senator who has come under fire for dumping stock as
the virus neared the United States.
In late February and early March, Sen. Kelly Loeffler (R-Ga.) sold stocks
valued at between $1.25 million and $3.1 million in companies that later
dropped significantly, including ExxonMobil. She also bought shares in
Citrix, which makes telework software.
Loeffler, who was appointed to her seat to fill a vacancy and faces an
election later this year, said after the sales became public that she and
her husband would divest all individual stocks.
Burr, a longtime supporter of federal programs responsible for dealing
with a pandemic, sits on two Senate committees that got early briefings on
the coronavirus the Intelligence Committee and the Senate committee that
handles health issues.
The health committee received a briefing on the virus on Feb. 12, one day
before his stock trades.
The same day Burr sold his stocks, Burrs brother-in-law, Gerald Fauth,
sold between $97,000 and $280,000 worth of six stocks, according to
documents filed with the Office of Government Ethics. Fauth serves on the
National Mediation Board, which provides mediation for labor disputes in
the aviation and rail industries.
Burr has denied coordinating trading with his brother-in-law.
In 2012, Congress prohibited lawmakers from acting on intelligence they
learn because of their privileged position, such as briefings with high-
level federal officials.
Under the STOCK Act, lawmakers are required to disclose their stock market
activity but are still allowed to own stock, even in industries they might
oversee.
The law passed the Senate in 2012 in a 96-3 vote. Among the three senators
to oppose the bill was Burr.
Times staff writer Sarah D. Wire contributed to this report.
https://www.latimes.com/politics/story/2020-05-13/fbi-serves-warrant-on-
senator-stock-investigation