The DoJ has dropped its probe into 3 US senators who dumped stock work millions shortly before the coronavirus market crash
by Tom Porter- The Department of Justice has dropped its investigation into three US senators accused of insider trading after receiving closed-door briefings on the likely impact of the coronavirus.
- Charges will not be filed against Republican senators Kelly Loeffler of Georgia and James Inhofe of Oklahoma, as well as Democratic Senator Diane Feinstein of California.
- All three sold stock not long before markets nosedived in March as the wider world realized the economic damage that would come from the virus.
- Loeffler, Inhofe, and Feinstein said they had no personal involvement in the sales, which were made by brokers without their direct input.
- GOP Senator Richard Burr of North Carolina remains under investigation.
- Burr dumped millions in hotel stocks as the pandemic began to spread from Asia, but says he made the decision after watching TV news reports.
- Visit Business Insider’s homepage for more stories.
The Department of Justice is dropping its probe into three US senators accused of insider trading over stock sales made after they received closed-door briefings on the coronavirus.
The DoJ will not be filing any charges against Republican Sens Kelly Loeffler of Georgia and James Inhofe of Oklahoma, as well as Democratic Sen. Dianne Feinstein of California.
The Wall Street Journal broke the news of the dropped investigations on Tuesday.
It said that Loeffler, Inhofe, and Feinstein all said that the sales, in late January and early February, were made by investment managers acting without their direct input.
According to Forbes, Loeffler’s sales were valued between $1.275 million to $3.1 million, Inhofe’s at about $400,000 and Feinstein’s between $1.5 million and $6 million.
The sales came when markets were reaching a peak, towards the end of a years-long rally.
It ended in late February and turned into a sustained crash through March, propelled by the increasing spread of the coronavirus pandemic, and a simultaneous crash in global oil prices.
The investigations were made under the 2012 “Stop Trading on Congressional Knowledge Act,” which bans elected officials from making trades on the basis of information that isn’t in the public sphere.
Officials continue to investigate Republican Sen. Richard Burr of North Carolina.
His sales, in late February were worth up to $1.72 million, reported Propublica. Much of the investments were in hotel chains Wyndham and Extended Stay America.
According to the WSJ report, Burr had a more direct role in his trades than the other senators.
However, the report says Burr claims he made the trades based on TV news reports about the coronavirus, rather than any information he had because of his role as a Senator.
Earlier in the month Burr’s phone was seized by the FBI. He has temporarily stepped down as chairman of the Senate Intelligence Committee while the investigation is being conducted.