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Sen. Loeffler hands over documents to Justice Department amid scrutiny on stock trades

The news comes after Sen. Richard Burr had his cellphone seized by the FBI in an investigation into insider trading.
Credit: Senate HELP Committee

WASHINGTON — Sen. Kelly Loeffler (R-GA) has turned over documents to the Justice Department after her colleague, Sen. Richard Burr (R-NC), found himself at the center of an FBI investigation.

Burr stepped aside as chairman of the Senate Intelligence Committee on Thursday after the FBI served a search warrant for his phone as part of an ongoing insider-trading investigation tied to the coronavirus pandemic.

Senate Majority Leader Mitch McConnell announced the move, saying he and Burr had agreed it was in the Senate's best interests.

RELATED: Burr steps down as Senate intelligence chair amid FBI investigation

FBI officials showed up at Burr's home with the warrant on Wednesday, marking a significant escalation into the Justice Department's investigation into whether Burr broke the law with a well-timed sale of stocks before the coronavirus caused markets to plummet.

Burr and Loeffler came under scrutiny in March after reports showed each sold millions of dollars worth of stocks right after receiving confidential information about the possible COVID-19 pandemic.

RELATED: Justice Department investigating lawmakers' stock trades amid coronavirus market decline

“Senator Loeffler has forwarded documents and information to DOJ, the SEC, and the Senate Ethics Committee establishing that she and her husband acted entirely appropriately and observed both the letter and the spirit of the law,” a spokesperson with Loeffler’s office said in a statement Thursday evening.

"The documents and information demonstrated her and her husband’s lack of involvement in their managed accounts, as well the details of those accounts. Senator Loeffler has welcomed and responded to any questions from day one," the statement continued.

RELATED: Reports: Loeffler among 4 US senators accused of dumping stocks before coronavirus market crash

Loeffler’s office says the senator has not received a search warrant from the FBI.

Bret Williams, a former federal prosecutor who currently has his own defense practice, says Loeffler could be in hot water.

“If (investigators) can prove Sen. Burr was in fact trading on inside knowledge that he got from a briefing, and others seem to have done the same thing and received the same information, that could raise serious problems for them,” said Williams.

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