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Burr’s Brother-in-Law Dumped Stock One Minute After Getting Off Phone With Senator

Sen. Richard Burr had access to material nonpublic information about the looming economic impact of the coronavirus in February 2020, according to the SEC.

The Securities and Exchange Commission has revealed that Sen. Richard Burr, who had access to nonpublic information about the coronavirus’ looming economic impact, warned his brother-in-law in a 50-second phone call. The brother-in-law, Gerald Fauth, called his stockbroker the next minute, according to ProPublica. When it turned out that his broker was out of the office, Fauth immediately called a backup trader, who executed the sales.

Burr himself dumped more than $1.6 million in stocks prior to calling Fauth in February 2020, a week before the COVID-19-related market crash. The SEC has alleged that Burr obtained his insider information from his role as then-chairman of the Senate Intelligence Committee, a member of its health committee, and through former staffers involved in the government response to the virus.

ProPublica previously reported that Burr and Fauth, a Trump appointee to the National Mediation Board, dumped their stock on the same day. Fauth sold between $97,000 and $280,000 worth of shares in six companies, including several that were majorly impacted by the economic downturn. The SEC’s insider trading investigation into the brothers-in-law is ongoing.