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Richard Burr Steps Back From Senate Panel as Phone Is Seized in Stock Sales Inquiry Richard Burr Steps Back From Senate Panel as Phone Is Seized in Stock Sales Inquiry
(about 20 hours later)
WASHINGTON — Senator Richard M. Burr of North Carolina temporarily stepped down on Thursday as chairman of the Senate Intelligence Committee, a day after F.B.I. agents seized his cellphone as part of an investigation into whether he sold hundreds of thousands of dollars’ worth of stocks using nonpublic information about the coronavirus.WASHINGTON — Senator Richard M. Burr of North Carolina temporarily stepped down on Thursday as chairman of the Senate Intelligence Committee, a day after F.B.I. agents seized his cellphone as part of an investigation into whether he sold hundreds of thousands of dollars’ worth of stocks using nonpublic information about the coronavirus.
The seizure and an accompanying search for his electronic storage accounts, confirmed by an investigator briefed on the case, represented a significant escalation of the inquiry by the Justice Department and the Securities and Exchange Commission. They suggest that Mr. Burr, a Republican and one of the most influential members of Congress, may be in serious legal jeopardy.The seizure and an accompanying search for his electronic storage accounts, confirmed by an investigator briefed on the case, represented a significant escalation of the inquiry by the Justice Department and the Securities and Exchange Commission. They suggest that Mr. Burr, a Republican and one of the most influential members of Congress, may be in serious legal jeopardy.
Given the sensitivity surrounding the decision to obtain a search warrant on a sitting senator, the move was approved at the highest levels of the department, a senior Justice Department official said, meaning that Attorney General William P. Barr signed off on it. The warrant to obtain Mr. Burr’s phone was served to his lawyer, and investigators took Mr. Burr’s phone from him at his home, according to the official who, like the investigator, spoke on the condition of anonymity to publicly discuss the case.Given the sensitivity surrounding the decision to obtain a search warrant on a sitting senator, the move was approved at the highest levels of the department, a senior Justice Department official said, meaning that Attorney General William P. Barr signed off on it. The warrant to obtain Mr. Burr’s phone was served to his lawyer, and investigators took Mr. Burr’s phone from him at his home, according to the official who, like the investigator, spoke on the condition of anonymity to publicly discuss the case.
Mr. Burr has denied he did anything wrong. With the investigation progressing, he said Thursday that he wanted to limit distraction to the Senate and informed Senator Mitch McConnell, Republican of Kentucky and the majority leader, that he would step aside. Mr. Burr will remain a member of the committee, however, and continue serving in the Senate.Mr. Burr has denied he did anything wrong. With the investigation progressing, he said Thursday that he wanted to limit distraction to the Senate and informed Senator Mitch McConnell, Republican of Kentucky and the majority leader, that he would step aside. Mr. Burr will remain a member of the committee, however, and continue serving in the Senate.
“This is a distraction to the hard work of the committee, and the members and I think that the security of the country is too important to have a distraction,” Mr. Burr told reporters in the Capitol. He declined to discuss the case further but said he was cooperating with the authorities.“This is a distraction to the hard work of the committee, and the members and I think that the security of the country is too important to have a distraction,” Mr. Burr told reporters in the Capitol. He declined to discuss the case further but said he was cooperating with the authorities.
Mr. McConnell, who had yet to pick a temporary successor for Mr. Burr as chairman, said that he agreed “this decision would be in the best interests of the committee and will be effective at the end of the day tomorrow.”Mr. McConnell, who had yet to pick a temporary successor for Mr. Burr as chairman, said that he agreed “this decision would be in the best interests of the committee and will be effective at the end of the day tomorrow.”
Mr. Burr sold the stock on Feb. 12 before the market cratered and as President Trump and some supporters were downplaying the threat of the virus. At the time, Mr. Burr was receiving briefings and involved in senators-only conversations suggesting the country faced a growing health crisis that could hurt the economy.Mr. Burr sold the stock on Feb. 12 before the market cratered and as President Trump and some supporters were downplaying the threat of the virus. At the time, Mr. Burr was receiving briefings and involved in senators-only conversations suggesting the country faced a growing health crisis that could hurt the economy.
The Justice Department declined to comment on the warrant, which The Los Angeles Times first reported.The Justice Department declined to comment on the warrant, which The Los Angeles Times first reported.
The senator has insisted that he based his trading decisions exclusively on publicly reported information that he read in financial news accounts out of Asia. Mr. Burr’s legal adviser, Alice Fisher, said the facts of the case would ultimately “establish that his actions were appropriate.”The senator has insisted that he based his trading decisions exclusively on publicly reported information that he read in financial news accounts out of Asia. Mr. Burr’s legal adviser, Alice Fisher, said the facts of the case would ultimately “establish that his actions were appropriate.”
It is not illegal for lawmakers to make investment decisions based on public information. But insider trading laws, including the Stock Act that governs Congress, prohibit officials from making decisions based on specific, nonpublic information they receive in the course of their work.It is not illegal for lawmakers to make investment decisions based on public information. But insider trading laws, including the Stock Act that governs Congress, prohibit officials from making decisions based on specific, nonpublic information they receive in the course of their work.
Paul Shumaker, a longtime adviser to Mr. Burr, said the senator was adamant that he had done nothing wrong and would not resign. “He has no choice but to fight this. He has to clear his name,” said Mr. Shumaker, adding that for Mr. Burr to quit would amount to “an admission of guilt” and that would not halt the inquiry.Paul Shumaker, a longtime adviser to Mr. Burr, said the senator was adamant that he had done nothing wrong and would not resign. “He has no choice but to fight this. He has to clear his name,” said Mr. Shumaker, adding that for Mr. Burr to quit would amount to “an admission of guilt” and that would not halt the inquiry.
Federal investigators have also scrutinized stock trades by other senators around the same time, including Senators James M. Inhofe, Republican of Oklahoma; Kelly Loeffler, Republican of Georgia; and Dianne Feinstein, Democrat of California, according to a person briefed on those cases. All three have said they did nothing wrong.Federal investigators have also scrutinized stock trades by other senators around the same time, including Senators James M. Inhofe, Republican of Oklahoma; Kelly Loeffler, Republican of Georgia; and Dianne Feinstein, Democrat of California, according to a person briefed on those cases. All three have said they did nothing wrong.
In April, law enforcement officials asked Ms. Feinstein “basic questions” about stock transactions made by her husband during the period in question, her spokesman, Tom Mentzer, said on Thursday. He said Ms. Feinstein complied and provided documents that showed she had no involvement.In April, law enforcement officials asked Ms. Feinstein “basic questions” about stock transactions made by her husband during the period in question, her spokesman, Tom Mentzer, said on Thursday. He said Ms. Feinstein complied and provided documents that showed she had no involvement.
A spokeswoman for Ms. Loeffler, Kerry Rom, said the senator had “forwarded documents and information to D.O.J., the S.E.C., 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 spokeswoman for Ms. Loeffler, Kerry Rom, said the senator had “forwarded documents and information to D.O.J., the S.E.C., 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.”
Ms. Rom did not say whether the authorities had requested the information or if Ms. Loeffler provided it proactively in an effort to tamp down a story line that has roiled her Senate campaign.Ms. Rom did not say whether the authorities had requested the information or if Ms. Loeffler provided it proactively in an effort to tamp down a story line that has roiled her Senate campaign.
But Mr. Burr is the primary target of the investigation and his case is more advanced, according to one of the investigators. Unlike other senators under scrutiny, Mr. Burr has not denied that he initiated the sales himself or that they were related to concerns about the coronavirus. He has asked the Senate Ethics Committee to investigate.But Mr. Burr is the primary target of the investigation and his case is more advanced, according to one of the investigators. Unlike other senators under scrutiny, Mr. Burr has not denied that he initiated the sales himself or that they were related to concerns about the coronavirus. He has asked the Senate Ethics Committee to investigate.
The scrutiny of Mr. Burr stems from his decision to sell 33 stock holdings collectively worth $628,000 to $1.7 million. The sales liquidated a large share of Mr. Burr’s portfolio, and they came in the days after a series of briefings on the spreading coronavirus that Mr. Burr received both as chairman of the Intelligence Committee and a member of the Senate’s Health, Education, Labor and Pensions Committee.The scrutiny of Mr. Burr stems from his decision to sell 33 stock holdings collectively worth $628,000 to $1.7 million. The sales liquidated a large share of Mr. Burr’s portfolio, and they came in the days after a series of briefings on the spreading coronavirus that Mr. Burr received both as chairman of the Intelligence Committee and a member of the Senate’s Health, Education, Labor and Pensions Committee.
During the intelligence panel briefing, on Feb. 4, C.I.A. officials sketched out an early picture of the geopolitical effect of an outbreak that was still confined to Asia. Other briefings to the health panel, including one the day before Mr. Burr’s stock transactions, featured top government health officials who would later steer the country through the pandemic.During the intelligence panel briefing, on Feb. 4, C.I.A. officials sketched out an early picture of the geopolitical effect of an outbreak that was still confined to Asia. Other briefings to the health panel, including one the day before Mr. Burr’s stock transactions, featured top government health officials who would later steer the country through the pandemic.
Updated June 5, 2020Updated June 5, 2020
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Investigators are likely trying to determine the content of those briefings, particularly any information presented that was not publicly available, but it could be difficult. Much of the information may be sensitive or closely resemble public reporting at the time. And experts say Congress’s so-called speech-or-debate clause could prevent investigators from directly questioning Mr. Burr about what he learned in the course of his duties as a senator.Investigators are likely trying to determine the content of those briefings, particularly any information presented that was not publicly available, but it could be difficult. Much of the information may be sensitive or closely resemble public reporting at the time. And experts say Congress’s so-called speech-or-debate clause could prevent investigators from directly questioning Mr. Burr about what he learned in the course of his duties as a senator.
Mr. Burr also has a history of warning about the threat from pandemics. He helped write legislation more than a decade ago to assist the United States in better preparing for such events. He heralded that work in an op-ed article in early February saying that the country was “better prepared than ever” to respond to the coronavirus.Mr. Burr also has a history of warning about the threat from pandemics. He helped write legislation more than a decade ago to assist the United States in better preparing for such events. He heralded that work in an op-ed article in early February saying that the country was “better prepared than ever” to respond to the coronavirus.
Few figures on Capitol Hill have played higher-profile roles in recent years than Mr. Burr. A reliable conservative vote, he has nonetheless been the face of and driving force behind a three-year bipartisan intelligence committee investigation into Russia’s interference in the 2016 election and possible ties to the Trump campaign.Few figures on Capitol Hill have played higher-profile roles in recent years than Mr. Burr. A reliable conservative vote, he has nonetheless been the face of and driving force behind a three-year bipartisan intelligence committee investigation into Russia’s interference in the 2016 election and possible ties to the Trump campaign.
His insistence on seeing the investigation through and tough questioning of close associates of the president has piqued the White House at times, and relations between the president and the senator remain chilly.His insistence on seeing the investigation through and tough questioning of close associates of the president has piqued the White House at times, and relations between the president and the senator remain chilly.
Some of Mr. Burr’s allies in the Senate privately questioned on Thursday why the search warrants became public if Mr. Burr was cooperating.Some of Mr. Burr’s allies in the Senate privately questioned on Thursday why the search warrants became public if Mr. Burr was cooperating.
“I don’t believe he did anything criminally wrong,” Senator Lindsey Graham, Republican of South Carolina, told reporters. “Maybe he used poor judgment, I guess, but I know Richard and he is the one guy I can tell you who actually does watch CNBC Hong Kong.”“I don’t believe he did anything criminally wrong,” Senator Lindsey Graham, Republican of South Carolina, told reporters. “Maybe he used poor judgment, I guess, but I know Richard and he is the one guy I can tell you who actually does watch CNBC Hong Kong.”
Mr. Burr, whose term ends in 2022, has already said he does not intend to run for re-election. But the specter of North Carolina’s senior senator facing an F.B.I. inquiry could further complicate Republican prospects in what is perhaps the most pivotal state on the electoral map this year.Mr. Burr, whose term ends in 2022, has already said he does not intend to run for re-election. But the specter of North Carolina’s senior senator facing an F.B.I. inquiry could further complicate Republican prospects in what is perhaps the most pivotal state on the electoral map this year.
Democrats in North Carolina renewed their calls for Mr. Burr to resign his Senate seat altogether.Democrats in North Carolina renewed their calls for Mr. Burr to resign his Senate seat altogether.
“If he has any sense of decency left, Burr will resign immediately, and if they have any regard for the rule of law, Republicans across this state and all over our country will demand the same,” said Wayne Goodwin, the chairman of the state Democratic Party.“If he has any sense of decency left, Burr will resign immediately, and if they have any regard for the rule of law, Republicans across this state and all over our country will demand the same,” said Wayne Goodwin, the chairman of the state Democratic Party.
Emily Cochrane, Jonathan Martin and Adam Goldman contributed reporting.Emily Cochrane, Jonathan Martin and Adam Goldman contributed reporting.