The Securities and Exchange Commission closed its insider trading probe of former Sen. Richard Burr, R-N.C., and his brother-in-law without taking action against either, lawyers said Friday.
The SEC conducted a civil investigation of Burr and his brother-in-law Gerald Fauth for their sale of stocks on the same day in February 2020, CNBC reported.
The stock sales came a week before equities markets in the U.S. and elsewhere plunged during the COVID-19 pandemic.
Burr had received briefings about the threat of the coronavirus pandemic, and had a short phone call with Frauth on the same day as the stock sales, the SEC said in court filings, CNBC reported.
The STOCK Act, which allows lawmakers to own stock and requires them to disclose their activity, bars them from acting on privileged information. The law passed in the Senate in 2012; Burr was one of three senators who voted against it.
Fauth also dumped several stocks on Feb. 13, according to Office of Government Ethics records. Fauth serves on the National Mediation Board, which handles labor issues in the railroad and airline industries.
A criminal probe of Burr and Fauth had closed earlier without any action.
"This week, the SEC informed me that they have concluded their investigation with no action," Burr said in a statement. "I am glad to have this matter in the rearview mirror as I begin my retirement from the Senate following nearly three decades of public service."
Alice Fisher, Burr's attorney, said in a statement: "We have believed all along that this is the right result."
Burr retired as a senator Tuesday.
F. Joseph Warin, Fauth’s lawyer, said in a statement: "We are thrilled that the SEC and the DOJ appropriately closed their investigations without any findings of insider trading. Mr. Fauth looks forward to continuing his public service and leadership in the transportation business."
Jeffrey Rodack ✉
Jeffrey Rodack, who has nearly a half century in news as a senior editor and city editor for national and local publications, has covered politics for Newsmax for nearly seven years.
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