DOJ Closes Insider-Trading Investigations Into Senators Loeffler, Inhofe and Feinstein

quote:

---

The Justice Department is closing investigations into three U.S. senators for stocks trades made shortly before the coronavirus market turmoil, but is continuing a related investigation into GOP Sen. Richard Burr, according to people familiar with the matter.

Prosecutors on Tuesday alerted defense attorneys for Republicans Kelly Loeffler of Georgia and James Inhofe of Oklahoma as well as Democrat Dianne Feinstein of California that they are closing investigations into their trading, the people said.

The Federal Bureau of Investigation began the investigations two months ago, as reports emerged that several members of Congress, their spouses or their investment advisers sold hundreds of thousands of dollars in stock after lawmakers attended closed-door briefings about the threat posed by the pandemic. Some of those trades spared lawmakers as much as hundreds of thousands of dollars in losses as stocks sank by mid-March.

---

quote:

---

All of the lawmakers have denied any impropriety in the trading. Ms. Feinstein, Ms. Loeffler and Mr. Inhofe have said their investment advisers made the trades and that they didn’t learn of them until after the fact.

Mr. Burr, of North Carolina, had more direct involvement in his trades and has said he was relying on news reports coming out of Asia, where the virus first emerged, to make his investment decisions. Earlier this month he agreed to temporarily step down as chairman of the Senate Intelligence Committee after FBI agents obtained a warrant to seize his cellphone in connection with the investigation.

---

quote:

---

The closure of the investigation into Ms. Loeffler could give her a boost as she struggles to keep her seat in Georgia. Ms. Loeffler, who was appointed by Georgia Gov. Brian Kemp to replace retired Sen. Johnny Isakson, is trailing another Republican, Rep. Doug Collins, in recent polls. Mr. Collins has criticized Ms. Loeffler over the trades, but she said last week that she had no plans to drop out of the race.

“Today’s clear exoneration by the Department of Justice affirms what Senator Loeffler has said all along—she did nothing wrong,” a spokesman for Ms. Loeffler said. Representatives for the other lawmakers had no immediate comment.

The execution of the search warrant targeting Mr. Burr, which required approval from senior Justice Department officials and a federal judge, underscored the serious nature of the inquiry into his actions.

---