FBI serves warrant on senator in investigation of stock sales linked to coronavirus
By DEL QUENTIN WILBER, JENNIFER HABERKORN
MAY 13, 20206:54 PM UPDATED 7:17 PM
WASHINGTON — Federal agents seized a cellphone belonging to a prominent Republican senator on Wednesday night as part of the Justice Department’s investigation into controversial stock trades he made as the novel coronavirus first struck the U.S., a law enforcement official said.
Sen. Richard Burr of North Carolina, the chairman of the Senate Intelligence Committee, turned over his phone to agents after they served a search warrant on the lawmaker at his residence in the Washington area, the official said, speaking on condition of anonymity to discuss a law enforcement action.
The seizure represents a significant escalation in the investigation into whether Burr violated a law preventing members of Congress from trading on insider information they have gleaned from their official work.
To obtain a search warrant, federal agents and prosecutors must persuade a judge they have probable cause to believe a crime has been committed. The law enforcement official said the Justice Department is examining Burr’s communications with his broker.
Such a warrant being served on a sitting U.S. senator would require approval from the highest ranks of the Justice Department and is a step that would not be taken lightly. Kerri Kupec, a Justice Department spokeswoman, declined to comment.
A second law enforcement official said FBI agents served a warrant in recent days on Apple to obtain information from Burr’s iCloud account and said agents used data obtained from the California-based company as part of the evidence used to obtain the warrant for the senator’s phone.
Burr sold a significant percentage of his stock portfolio in 33 different transactions on Feb. 13, just as his committee was receiving daily coronavirus briefings and a week before the stock market declined sharply. Much of the stock was invested in businesses that in subsequent weeks were hit hard by the plunging market.
Burr and other senators received briefings from U.S. public health officials before the stock sales.
A spokesperson for the FBI did not return phone messages seeking comment. A spokeswoman for Burr declined to comment. Burr has said he does not plan to run for reelection in 2022.
Burr’s sell-off — which was publicly disclosed in ranges — amounted to between $628,000 and $1.72 million. The stock trades were first reported by ProPublica.
After the sales became public, Burr said that he would ask the Senate Ethics Committee to review them.
Burr is not the only senator who has come under fire for dumping stock as the virus neared the United States.
more:
http://www.latimes.com/politics/story/2020-05-13/fbi-serves-warrant-on-senator-stock-investigation
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