As the virus situation developed in February, key senators were briefed. During that time, they were alerted to the fact that this disease might have a heavy impact on the country. What did they do? They dumped their stock holdings, right before the markets crashed. The DOJ doesn’t like that one bit—and they’re starting to ask questions.
The country continues to suffer from the extreme measures put into place by federal and local government. Fear and uncertainty about the virus contributed to wild days on the stock exchange. One day, it’s plummeting. The next, it’s climbing back. That’s not to mention how countless businesses have been forced to close their doors. Who knows if they’ll ever be able to open them?
What’s even worse is the thought that some of our leaders took advantage of this situation—before anyone else knew about it—to profit. But that’s just what several senators did. Led by Democrat Feinstein, these lawmakers dumped their stock holdings after learning about the threat of the virus. Knowing that this crisis might impact our economy, they sold off what they owned, right before the crash.
Sounds like insider trader to me, right?
They might even contributed to the early crash, as other investors followed their lead, triggering an avalanche of sell offs.
Is this why we elected these senators—so they could use their insider information to protect their own wealth? Instead of quickly acting to prevent nationwide disaster, they protect themselves. Not great, you guys.
So now, the DOJ is demanding answers.
The Justice Department has started to probe a series of stock transactions made by lawmakers ahead of the sharp market downturn stemming from the spread of coronavirus, according to two people familiar with the matter.
The inquiry, which is still in its early stages and being done in coordination with the Securities and Exchange Commission, has so far included outreach from the FBI to at least one lawmaker, Sen. Richard Burr, seeking information about the trades, according to one of the sources…
Congress passed the Stock Act in 2012, which made it illegal for lawmakers to use inside information for financial benefit.
Under insider trading laws, prosecutors would need to prove the lawmakers traded based on material non-public information they received in violation of a duty to keep it confidential. [Source: CNN]
It is illegal for anyone to trade stock based on information not available to the public. That is generally considered “insider trading.” On top of that, senators or other lawmakers cannot use inside information for financial benefit, according to the Stock Act.
Yet that seems to be just what these lawmakers did. How can anyone not suspect them? They made major investment decisions after being briefed about the virus during non-public meetings. This was about a month before the crisis hit our country. And right before the stock market dropped.
Does anyone think that was all just coincidence? Some of these senators are claiming they made these decisions based on publicly available information. But it all went down in early February—long before the mainstream media or most Americans were worried. It was certainly before large numbers of Americans were infected.
So, how can anyone honestly say they weren’t breaking the law?
Right now, the FBI and SEC are looking into one senator’s actions. But it might expand soon. During this crisis, it should be criminal for anyone to profit—at the expense of the country.
During WWII, anyone who harmed the war effort to make a profit faced serious consequences in both the United States and England. How is today any different? If you haven’t realized it yet, we’re in a war. And these senators decided to make a quick buck rather than help.
Perhaps they should face heavy penalties?