Late evening on Wed. 13 May, Richard Burr, a Senior
USA senator, heard the doorbell ring. Even senators get startled by a doorbell
these days. He opened the door to find FBI agents outside. They carried a
warrant to confiscate his i-phone. A seasoned politician, Burr handed it over.
What he didn’t know was that his i-cloud information was already under
investigation.
Richard Burr has been the Chairman of the Senate Intelligence
Committee since 2015. In that capacity, he has access to classified
information. In February, he was receiving daily briefings on the Coronavirus.
On 7 February, he wrote an op-ed comforting the American public that the USA
was better prepared than ever before.
On 12 February, two events happened. Burr received
another classified briefing from health experts, explaining the gravity of the crisis.
The same day, the US stock market reached its peak.
On 13 February, Burr and his wife, in 33 different
transactions, sold up to 1.7 million $ worth of stock. They got rid of all
their hospitality shares. On the same day, coincidentally, Burr’s brother-in-law
also sold a major portion of his stockholding.
Kelly Loeffler from Georgia is one of the richest
senators. She and her husband sold up to 3.1 million $ worth of stock. Her
husband is the Chairman of the New York Stock exchange.
On 24 February, the stock markets began to collapse,
and went down 32%. Burr saved at least half a million $ through his “timely”
actions. Burr said his stock selling was based on knowledge available in the
public domain, nothing to do with classified information. (Why didn’t smart
fund managers use this public domain information in as timely a manner)?
Loeffler said her actions showed not corruption, but
transparency.
*****
Obama’s administration had introduced the STOCK act to
prevent exactly such insider trading. The need was so obvious that the “Stop
Trading On Congressional Knowledge (STOCK) act, 2012” was passed by the
senators 96-3. Richard Burr was one of the three opposing senators.
*****
Is this one of the reasons why we, the public, receive
information too late? Politicians with structural access to classified information
get early warnings. They spend some time in securing their self-interest first.
Then allow a couple of weeks for corrupt actions to cool down. The privileged
information known to Burr and Loeffler was relayed to the general public a
month later.
*****
Kelly Loeffler says she and her husband have never
used any confidential information. However, in order to avoid the distraction, they
decided to sell all their individual stocks.
Richard Burr maintains his innocence. However, on 14
May, he resigned from his powerful post as Chairman of the Senate intelligence committee.
Ravi