GREENSBORO, N.C. — News details have been released about an insider trading investigation involving North Carolina Senator Richard Burr.
Court documents reveal the Securities and Exchange Commission is looking into Burr and his brother-in-law's stock trades at the beginning of the pandemic.
The securities and exchange commission filed 71 pages of claims in federal court that Burr had, "material nonpublic information regarding the incoming economic impact of coronavirus."
The SEC said it's investigating if Burr illegally used information to sell stocks on February 13, 2020. According to the documents, the SEC is also investigating if Burr tipped off his brother-in-law, Gerald Fauth.
They wrote: "On February 13, 2020, immediately after he spoke to Senator Burr on the phone and immediately after Senator Burr had directed his own broker to liquidate his own join IRA portfolio...Fauth appears to have directed the sell of several stocks."
According to the court documents, Burr and his brother-in-law talked for 50 seconds. Within a minute of hanging up, the brother-in-law called his broker.
WFMY News 2 reached out to Burr's office for comment but we haven’t heard back at this time.
It's important to note that this investigation is being done by the Securities and Exchange Commission. There was a separate investigation into possible insider trading done by the Department of Justice under former President Donald Trump.
Early this year, after President Biden took over, the DOJ ended that investigation. Sen. Burr issues a statement saying. “The Department of Justice informed me that it has concluded its review of my personal financial transactions conducted early last year. The case is now closed. I'm glad to hear it. My focus has been and will continue to be working for the people of North Carolina during this difficult time for our nation."
This is a new Securities and Exchange Commission investigation. We'll keep you updated when we learn more.
Video features former investigation into stock trades from 2020