A Republican senator who offloaded as much as $1.7 million in stocks weeks before the coronavirus pandemic tanked the market could face an investigation for selling off equities while suggesting publicly that everything would be fine.
North Carolina Attorney General Josh Stein called for a “thorough and complete investigation” of Sen. Richard Burr, tweeting on Tuesday that North Carolinians “deserve to know whether Sen. Burr violated the STOCK Act or any other federal law by using non-public information to sell stocks and avoid losses.”
Senate records show Burr and his wife sold between $600,000 and $1.7 million in 30 separate transactions placed between late January and early February when the disease was still considered an epidemic only affecting the people of China. Several of the transactions included sales of hotel stocks, which took a dramatic hit, along with the transportation sector after economic forecasts predicted neither would be able to function normally under state-mandated quarantines.
[Read more: Majority in North Carolina say Richard Burr should resign for selling stocks ahead of pandemic: Poll]
Burr is one of four lawmakers, including Sens. James Inhofe, Kelly Loeffler, and Diane Feinstein, who have been accused of selling off stocks ahead of the financial collapse caused by the outbreak of COVID-19.
“It appears that in a time of crisis, these senators chose instead to serve themselves, violating the public trust and abdicating their duty,” Citizens for Responsibility and Ethics in Washington Director Noah Bookbinder said on Saturday. “They must be immediately investigated.”
On Saturday, Burr argued he sold off the stocks after watching CNBC’s coverage of the coronavirus pandemic but understands “the assumption many could make in hindsight.”
But NPR uncovered audio recordings of Burr in mid-February telling a paid-membership group of constituents that the pandemic was “much more aggressive in its transmission than anything that we have seen in recent history.” The remarks followed a closed-door meeting of senators on Jan. 24 that provided detailed information pertaining to the spread of the disease.
On Monday, it was announced that Burr is being sued by shareholders of Wyndham Hotels and Resorts, who allege the senator used insider information to liquidate large positions in an attempt to salvage profits at the expense of others who did not possess the same access.
