SEC ends Richard Burr insider trading probe

The Securities and Exchange Commission has ended its insider trading investigation of former U.S. Sen. Richard Burr of North Carolina and his brother-in-law without taking action against either man, their lawyers said Friday.

The SEC was eyeing the Republican Burr and his brother-in-law Gerald Fauth, who sits on a federal board, in a civil probe for their stock sales on the same day in February 2020, a week before equities markets in the U.S. and elsewhere crashed as a result of the Covid-19 pandemic.

Their sales occurred after Burr had received briefings about the threat of the coronavirus pandemic, and on a day that Burr and Fauth spoke on a very short phone call.

Burr retired from the Senate on Tuesday after three terms. He had said before his 2016 reelection that he would not seek a fourth term if he won that year.

The SEC, which did not immediately respond to a request for comment Thursday, previously said in court filings that the agency was “investigating whether [Burr] sold stocks on the basis of nonpublic information.”

Members of Congress are barred by law from using nonpublic information that they obtain through their official positions to profit from stock trades.

The Department of Justice earlier had closed a criminal investigation of Burr and Fauth without taking action against either man.

As part of that criminal probe, Burr had his cell phone seized by the FBI in May 2020, which led to him stepping aside as chairman of the Senate Select Committee on Intelligence.

Burr, in a statement provided to CNBC on Friday, said, “This week, the SEC informed me that they have concluded their investigation with no action.”

“I am glad to have this matter in the rearview mirror as I begin my retirement from the Senate following nearly three decades of public service,” Burr said.

In her own statement, his attorney Alice Fisher said, “We have believed all along that this is the right result.”

Burr “is glad to put this matter behind him as he embarks on his retirement from his dedicated service in the Senate,” Fisher said.

In a statement, Fauth’s lawyer F. Joseph Warin said, “The SEC has closed its investigation into our client. “

“We are thrilled that the SEC and the DOJ appropriately closed their investigations without any findings of insider trading,” Warin said. “Mr. Fauth looks forward to continuing his public service and leadership in the transportation industry.” 

Burr, like other senators, had been briefed by federal health officials in early 2020 about the coronavirus before it began spreading widely in the U.S., leading to nationwide lockdowns and decreases in business activities.

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