Lawyer: SEC should go to Sen. Burr first in stock sale probe

Oct 29, 2021, 3:42 AM | Updated: 3:43 pm

NEW YORK (AP) — The lawyer for Sen. Richard Burr’s brother-in-law told a judge Friday that U.S. regulators should question the senator before quizzing his client in a probe of whether insider trading resulted from secrets about the pandemic’s true threat.

Attorney Francis Warin complained to a Manhattan federal judge that the Securities and Exchange Commission is insisting on interviewing Gerald Fauth under oath when the Republican senator from North Carolina hasn’t been questioned. The SEC had asked the judge to order Fauth to submit to questioning by Tuesday.

“Senator Burr has not been questioned and they seem completely fixated on taking our client’s testimony,” Warin said. “And yet Mr. Burr has not been questioned.”

Warin even asked Judge Andrew L. Carter Jr. to ask SEC lawyers during the hearing why they had not questioned Burr, though the judge declined to do so, saying he wasn’t going to “micromanage” how the SEC conducts a probe.

Burr has previously denied any wrongdoing. The SEC has released a timeline of his phone calls from Feb. 13, 2020, the day Burr sold the vast majority of his portfolio, roughly a week before the stock market began a steep descent.

The SEC said in court papers that Burr had “material nonpublic information concerning COVID-19 and its potential impact on the U.S. and global economies” some of which he “learned through his position” as chairman of the Senate Intelligence Committee and from former staffers directing the government’s coronavirus response.

Fauth, the brother of Burr’s wife, has been unable to answer questions under oath for more than a year because of health issues, Warin said.

Carter told Warin to consult with his client’s doctors and let the court know by Wednesday whether Fauth can safely answer questions in the probe, even if it’s just 15 minutes every other day for a month with medical staff standing by.

An SEC lawyer asked that the doctors be asked how Fauth could safely be asked questions rather than whether or not he can be asked them at all without suffering a health event. The judge allowed the health issues to remain secret.

Burr is among several lawmakers from both parties who faced outrage over their aggressive trading in early 2020, before the economic threat from the virus was widely known. Under a law known as the STOCK Act, it is illegal for members of Congress to use inside information learned through official duties to benefit financially.

He was captured in a recording privately warning a group of influential constituents in early 2020 to prepare for economic devastation.

Burr was investigated by the Trump administration’s Justice Department for offloading $1.6 million from his portfolio in January and February 2020. The department cleared him of wrongdoing almost a year later — on Jan. 19, Donald Trump’s last full day in office.

Burr is not seeking reelection next year. He was elected to the Senate in 2004 after a 10-year run in the House.

During Friday’s hearing, Carter read facts from the litigation aloud, saying the SEC got no response to affidavits sent to Fauth and his wife in May 2020 and has been continually seeking compliance with a subpoena for his testimony since June 2020.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Associated Press

Navy bribery fugitive ‘Fat Leonard’ seeks Venezuelan asylum

SAN DIEGO (AP) — The fugitive defense contractor nicknamed “Fat Leonard” who orchestrated a huge bribery scheme involving dozens of U.S. Navy officers, has requested asylum in Venezuela, a law enforcement official said Monday, nearly a week after he was captured in the South American country. Leonard Glenn Francis slipped away from house arrest in […]
15 hours ago
Associated Press

Shooting suspect believed to be on run with his daughter, 15

FONTANA, Calif. (AP) — A Southern California woman was shot to death Monday in a domestic violence incident and police said the suspect is a man believed to be on the run with his 15-year-old daughter. Officers responding around 7:30 a.m. to reports of gunfire found the victim with multiple gunshot wounds at a home […]
15 hours ago
Associated Press

2nd fatal shooting in 2 days with deputies in SC county

SUMTER, S.C. (AP) — For the second straight day, deputies in a South Carolina county have been involved in a fatal shooting. Sumter County deputies were checking on a possible hostage situation Monday near Rembert when a suspect was shot and killed, authorities told news outlets. State agents are investigating the circumstances that led to […]
15 hours ago
Associated Press

Tronox, Best Buy fall; Wynn Resorts, PG&E rise

NEW YORK (AP) — Stocks that traded heavily or had substantial price changes Monday: Wynn Resorts Ltd., up $7.15 to $66.80. The casino operator gained ground on reports that the gambling haven of Macao will ease some travel restrictions starting in November. Atlas Corp., up 43 cents to $13.95. A consortium of companies raised its […]
15 hours ago
Associated Press

How major US stock indexes fared Monday 9/26/2022

Stocks fell on Wall Street and put major indexes deeper into a slump as recession fears grow. The S&P 500 fell 1% Monday. The Dow Jones Industrial Average and the Nasdaq also fell. The losses were broad and included banks, health care companies and retailers. The British pound slumped to an all-time low against the […]
15 hours ago
Associated Press

Planned Parenthood asks for hold on Arizona abortion ruling

PHOENIX (AP) — Planned Parenthood asked an Arizona judge Monday to put on hold a ruling that allowed prosecutors to enforce a Civil War-era law banning abortion in nearly all cases. The state’s largest abortion provider said the ruling issued late Friday has created confusion about the status of the law in Arizona. Its lawyers […]
15 hours ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
Lawyer: SEC should go to Sen. Burr first in stock sale probe