Sen. Kelly Loeffler reported millions of dollars in stock sales this year as the coronavirus swept through the United States.
Financial disclosures show the Georgia Republican, one of several senators accused of insider trading after reports showed they dumped stocks prior to the market plunge earlier this year, had even more stocks bought and sold on her behalf.
Loeffler’s office have dismissed allegations of wrongdoing and stressed that all daily trades are conducted by investment advisers without the senator’s prior knowledge.
In one series of transactions reported by the Atlanta Journal-Constitution, Loeffler and husband Jeffrey Sprecher, the founder, CEO, and chairman of the Intercontinental Exchange and chairman of the New York Stock Exchange, sold shares of retailers such as T.J. Maxx and Lululemon and bought shares in a company that produces protective garments needed in the battle against the coronavirus. Many retailers have been forced to furlough workers after closing brick-and-mortar stores that were deemed nonessential in many states.
The biggest transactions involve $18.7 million in sales of Intercontinental Exchange stock in three separate dumps that took place between Feb. 26 and March 11. The senator used to work for the same firm before taking office. These sales took place when the effects of the coronavirus pandemic on the economy were already being felt.
According to her most recent financial disclosure filing, covering Feb. 18 through March 13 and reported by the Wall Street Journal, Loeffler and her husband exercised options to buy shares in the company and sold them for roughly $10.9 million, which is typical for the couple, which has a net worth of at least $500 million. A Loeffler representative said that, under Securities and Exchange Commission rules, the transactions for these ICE securities are beholden to a preestablished plan governing buying and selling, including the requirement of at least a 30-day “cooling off period” before such transactions can be executed.
Loeffler’s controversial series of personal sales earlier in the year, much of which took place after an all-senators briefing in January about the coronavirus threat, included stock sales of up to $3.1 million and purchased shares in a teleworking company. All this took place in the first six weeks of 2020, before the economic downturn.
“Sen. Loeffler came to Washington on a promise to be a different kind of elected official. She holds herself to high standards of ethics and transparency, including acting in accordance with both the letter and spirit of the law, which she has done at every step of her time in the Senate and in her lengthy career in financial services,” said Kerry Rom, a spokeswoman for Loeffler.
Loeffler has repeatedly deflected accusations of insider trading, claiming neither she nor her husband directly controls the financial decisions made for their portfolio. Her campaign said she was not notified of any of the transactions until two weeks after they took place.
Loeffler said earlier this month she was targeted by “a ridiculous and baseless attack” and stressed “investment decisions are made by multiple third-party advisers without my or my husband’s knowledge or involvement.”
Loeffler is facing Georgia Rep. Doug Collins in a primary race for her Senate seat. She was appointed to the seat in December by Gov. Brian Kemp after Sen. Johnny Isakson resigned from his seat due to health issues.
The FBI and the Securities and Exchange Commission opened an inquiry into controversial stock sales made by a slew of senators just before the stock market plunged as the U.S. grappled with the coronavirus crisis. So far, it has only been reported that outreach has been made to Senate Intelligence Committee Chairman Richard Burr, whose sales took place while he received closed-door briefings about the coronavirus. Loeffler’s office told the Wall Street Journal that investigators have not reached out to the senator.
Other senators caught up in the controversy include Oklahoma Republican Jim Inhofe and California Democrat Dianne Feinstein. All the senators have denied any wrongdoing.
EDITOR’S NOTE: This story has been updated to add clarity to aspects of Loeffler’s financial situation.
