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Justice Dept. Ends Inquiries Into 3 Senators’ Stock Trades Justice Dept. Ends Inquiries Into 3 Senators’ Stock Trades
(about 11 hours later)
WASHINGTON — The Justice Department notified three senators on Tuesday that it will not pursue insider trading charges against them after an investigation into stock transactions from the early days of the coronavirus pandemic did not find sufficient evidence they had broken the law, according to a person briefed on the investigations and congressional aides.WASHINGTON — The Justice Department notified three senators on Tuesday that it will not pursue insider trading charges against them after an investigation into stock transactions from the early days of the coronavirus pandemic did not find sufficient evidence they had broken the law, according to a person briefed on the investigations and congressional aides.
The department contacted lawyers for Senators Kelly Loeffler, Republican of Georgia; James M. Inhofe, Republican of Oklahoma; and Dianne Feinstein, Democrat of California. All three had sold substantial amounts of stock in late January or early February when lawmakers were being briefed on the novel coronavirus threat but before the pandemic began roiling financial markets or was fully understood by the public.The department contacted lawyers for Senators Kelly Loeffler, Republican of Georgia; James M. Inhofe, Republican of Oklahoma; and Dianne Feinstein, Democrat of California. All three had sold substantial amounts of stock in late January or early February when lawmakers were being briefed on the novel coronavirus threat but before the pandemic began roiling financial markets or was fully understood by the public.
Law enforcement officials appear to still be investigating Senator Richard M. Burr, Republican of North Carolina, whose own mid-February stock sales have drawn scrutiny from the Justice Department and Securities and Exchange Commission. This month, F.B.I. agents seized Mr. Burr’s cellphone.Law enforcement officials appear to still be investigating Senator Richard M. Burr, Republican of North Carolina, whose own mid-February stock sales have drawn scrutiny from the Justice Department and Securities and Exchange Commission. This month, F.B.I. agents seized Mr. Burr’s cellphone.
For the other senators, the notifications are likely to begin lifting suspicions that have lingered since mid-March, when they disclosed the trades in mandatory Senate filings. At a time when millions of Americans were losing their jobs and markets had plummeted, even the possibility that members of Congress had used their positions to protect themselves financially prompted cries for resignations and investigations.For the other senators, the notifications are likely to begin lifting suspicions that have lingered since mid-March, when they disclosed the trades in mandatory Senate filings. At a time when millions of Americans were losing their jobs and markets had plummeted, even the possibility that members of Congress had used their positions to protect themselves financially prompted cries for resignations and investigations.
A Justice Department spokeswoman declined to comment. Aides to the senators confirmed the notification.A Justice Department spokeswoman declined to comment. Aides to the senators confirmed the notification.
Though Ms. Loeffler, Ms. Feinstein and Mr. Inhofe had all denied they were personally involved in the investment transactions, much less directing them based on insider information, the F.B.I. had asked them to produce records and other information related to the sales.Though Ms. Loeffler, Ms. Feinstein and Mr. Inhofe had all denied they were personally involved in the investment transactions, much less directing them based on insider information, the F.B.I. had asked them to produce records and other information related to the sales.
Investigators’ decision not to pursue charges would be particularly welcome news for Ms. Loeffler, who is facing a tough battle to hold onto her seat in November’s election. Polling suggests that the swirling accusations of misconduct around her multimillion-dollar stock transactions had hurt her standing with Georgia voters at a time when Democrats and a fellow Republican are vying for her seat.Investigators’ decision not to pursue charges would be particularly welcome news for Ms. Loeffler, who is facing a tough battle to hold onto her seat in November’s election. Polling suggests that the swirling accusations of misconduct around her multimillion-dollar stock transactions had hurt her standing with Georgia voters at a time when Democrats and a fellow Republican are vying for her seat.
“Today’s clear exoneration by the Department of Justice affirms what Senator Loeffler has said all along — she did nothing wrong,” said Stephen Lawson, a spokesman for her campaign.“Today’s clear exoneration by the Department of Justice affirms what Senator Loeffler has said all along — she did nothing wrong,” said Stephen Lawson, a spokesman for her campaign.
Mr. Inhofe, who is running to secure a fifth full term, told the Oklahoman newspaper that he was pleased the Justice Department had acknowledged he did “nothing wrong.” A spokesman for Ms. Feinstein did not immediately offer a comment.Mr. Inhofe, who is running to secure a fifth full term, told the Oklahoman newspaper that he was pleased the Justice Department had acknowledged he did “nothing wrong.” A spokesman for Ms. Feinstein did not immediately offer a comment.
The Justice Department typically informs lawmakers when they have closed investigation into their actions but can sometimes take weeks or months to do so, in part to account for the possibility that investigators could find new evidence that would prompt reopening any inquiry, former department employees said.The Justice Department typically informs lawmakers when they have closed investigation into their actions but can sometimes take weeks or months to do so, in part to account for the possibility that investigators could find new evidence that would prompt reopening any inquiry, former department employees said.
F.B.I. investigations into Senate or House candidates like Ms. Loeffler and Mr. Inhofe require written notification to Justice Department officials, according to a memo issued in February by Attorney General William P. Barr.F.B.I. investigations into Senate or House candidates like Ms. Loeffler and Mr. Inhofe require written notification to Justice Department officials, according to a memo issued in February by Attorney General William P. Barr.
Lawmakers can hold and trade stocks. But a 2012 law, the Stop Trading on Congressional Knowledge Act, bars members of Congress and their aides from making investment decisions based on inside information they have access to as part of their Senate work, including both criminal and civil penalties for violations. Legal experts say that determining what information is “nonpublic” can be exceedingly difficult; no one has been successfully prosecuted under the law.Lawmakers can hold and trade stocks. But a 2012 law, the Stop Trading on Congressional Knowledge Act, bars members of Congress and their aides from making investment decisions based on inside information they have access to as part of their Senate work, including both criminal and civil penalties for violations. Legal experts say that determining what information is “nonpublic” can be exceedingly difficult; no one has been successfully prosecuted under the law.
There are also signs that the Senate Ethics Committee may be investigating the sales itself; the bipartisan panel works in secret.There are also signs that the Senate Ethics Committee may be investigating the sales itself; the bipartisan panel works in secret.
The transactions under scrutiny by the Justice Department and S.E.C. all took place between late January and late February, around when government health and national security officials began warning lawmakers about what would become a full-blown national crisis in March. At that point, Republican senators and President Trump were mostly playing down the threat of the virus to Americans and financial markets were surging.The transactions under scrutiny by the Justice Department and S.E.C. all took place between late January and late February, around when government health and national security officials began warning lawmakers about what would become a full-blown national crisis in March. At that point, Republican senators and President Trump were mostly playing down the threat of the virus to Americans and financial markets were surging.
Ms. Loeffler and her husband, the financial executive Jeffrey C. Sprecher, reported transactions worth millions of dollars beginning in late January, right after senators received their first private briefing from top health officials on Covid-19. The sales included shares of Exxon Mobil, Ross Stores and AutoZone, which later lost value when the markets dropped. And the couple continued to trade in the weeks that followed as the effects of the virus spread.Ms. Loeffler and her husband, the financial executive Jeffrey C. Sprecher, reported transactions worth millions of dollars beginning in late January, right after senators received their first private briefing from top health officials on Covid-19. The sales included shares of Exxon Mobil, Ross Stores and AutoZone, which later lost value when the markets dropped. And the couple continued to trade in the weeks that followed as the effects of the virus spread.
Ms. Feinstein and her husband sold stock worth $1.5 million to $6 million in Allogene Therapeutics, a California-based biotech company, on Jan. 31 and Feb. 18, public disclosures show.Ms. Feinstein and her husband sold stock worth $1.5 million to $6 million in Allogene Therapeutics, a California-based biotech company, on Jan. 31 and Feb. 18, public disclosures show.
And Mr. Inhofe sold stock worth as much as $400,000 on Jan. 27, including shares in PayPal, Apple and Brookfield Asset Management, a real estate company.And Mr. Inhofe sold stock worth as much as $400,000 on Jan. 27, including shares in PayPal, Apple and Brookfield Asset Management, a real estate company.
All three denied any connection between the two events, and they said they left investment decisions to outside financial advisers who had made the trades without their knowledge. In the case of Mr. Inhofe, he did not even attend the January briefing, though as chairman of the Armed Services Committee he is regularly briefed on emerging threats, including pandemics.All three denied any connection between the two events, and they said they left investment decisions to outside financial advisers who had made the trades without their knowledge. In the case of Mr. Inhofe, he did not even attend the January briefing, though as chairman of the Armed Services Committee he is regularly briefed on emerging threats, including pandemics.
Updated June 12, 2020 Updated June 16, 2020
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
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.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.
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.
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.
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.
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.
In an effort to tamp down questions about potential conflicts of interest, Ms. Loeffler decided in April to sell off all her shares in individual stocks and move the money to mutual and exchange-traded funds.In an effort to tamp down questions about potential conflicts of interest, Ms. Loeffler decided in April to sell off all her shares in individual stocks and move the money to mutual and exchange-traded funds.
Mr. Burr’s case has always been different. It centers on his decision to sell 33 stock holdings collectively worth $628,000 to $1.7 million in mid-February. The sales represented a large portion of his holdings.Mr. Burr’s case has always been different. It centers on his decision to sell 33 stock holdings collectively worth $628,000 to $1.7 million in mid-February. The sales represented a large portion of his holdings.
As chairman of the Intelligence Committee, he had greater access to government intelligence assessments on how the virus was affecting geopolitics. Unlike the other lawmakers, he has never denied that he arranged his stock sales himself or that he sold the shares out of concern the virus would tank global markets.As chairman of the Intelligence Committee, he had greater access to government intelligence assessments on how the virus was affecting geopolitics. Unlike the other lawmakers, he has never denied that he arranged his stock sales himself or that he sold the shares out of concern the virus would tank global markets.
Rather, he has said that he made his investment decisions solely on public information, which is legal. And his legal adviser and allies have insisted that he will be proved innocent.Rather, he has said that he made his investment decisions solely on public information, which is legal. And his legal adviser and allies have insisted that he will be proved innocent.
Making a case against him could be difficult, in part because members of Congress have broad speech and debate protections that could prevent investigators from questioning him about what he learned in nonpublic briefings on the virus.Making a case against him could be difficult, in part because members of Congress have broad speech and debate protections that could prevent investigators from questioning him about what he learned in nonpublic briefings on the virus.
Mr. Burr temporarily stepped down as chairman of the Intelligence Committee this month after the F.B.I. agents took his cellphone and obtained a search warrant for his electronic storage accounts. Because of Mr. Burr’s position, the move had to be approved by the highest levels of the Justice Department, which would mean Mr. Barr, a department official has said.Mr. Burr temporarily stepped down as chairman of the Intelligence Committee this month after the F.B.I. agents took his cellphone and obtained a search warrant for his electronic storage accounts. Because of Mr. Burr’s position, the move had to be approved by the highest levels of the Justice Department, which would mean Mr. Barr, a department official has said.