Newly released FBI documents show a vivid picture of the government's evidence in a 2020 insider trading investigation of North Carolina's senior senator.
The man was not charged with any crimes. The Justice Department had probable cause to believe that Burr had committed securities fraud, according to the affidavit released by the FBI.
At a time when U.S. markets and most Americans did not know how bad the coronaviruses would be, the chair of the Senate Intelligence Committee decided to liquidate more than half of his and his wife's stock holdings.
It was not possible for the public to know about America's meager preparation for a massive Pandemic.
The judge in the case later granted the search warrant application that was supported by the affidavit.
On the same day that the Fauths and the Burrs sold off hundreds of thousands of dollars of stock, there were a lot of calls and text messages between the two families.
The senator's office did not reply to a request for comment on the documents.
From the beginning, Burr insisted that the only information he needed to make a decision about selling his stock was public.
As chair of the Senate Intelligence Committee, he was given access to intelligence reports that contained warnings about the coronaviruses.
The source whose name is redacted in the FBI documents gave Burr nonpublic information on January 31st. On the same day, Burr placed orders to sell nearly $110,000 in stock from his and his wife's account.
75% of the total holdings in Burr and his wife's joint account were used to purchase the Treasury securities.
The FBI's Brandon Merriman notes that investors often purchase U.S. Treasury funds to hedge against a market downturn.
On February 12th, the Dow Jones Industrial Average closed at a record high of 29,552.42.
On the day after Burr bought the Treasury bill, he and his wife sold their equity shares.
The value of the stock sale was only reported within a range. The exact amounts were made public for the first time.
According to the FBI, the senator's portfolio went from 83% in equities to 3% in equities after his February 13, 2020 sales.
Markets began to slide as investors panicked over the potential economic damage from the coronaviruses.
Gerald Fauth sold a lot of stock in February of 2020.
A series of sell orders were placed into an account belonging to Fauth's wife, Mary Fauth, just before noon on the 13th.
Alice Fisher told ProPublica in May of 2020 that Burr did not coordinate his decision to trade with Fauth.
The FBI evidence shows that Burr's wife made a call to her brother. They talked for two minutes.
Records obtained by the Justice Department show that twenty minutes later, Burr used his cellphone to call Fauth.
Fauth called his investment manager just two minutes after he finished talking to his brother-law. The adviser told the FBI that Fauth sounded hurried and that he knew a senator.
The stock sell orders were placed between 11:38 and 11:49 a.m. according to the FBI.
Between 11:55 a.m. and 11:58 a.m., Fauth's orders were placed.
While the FBI affidavit sheds light on many of the questions surrounding Burr's stock sales, it closely protects at least one relevant piece of information.
The Justice Department mentions a number of text messages that Burr exchanged with someone whose name is blacked out, but who appears to be a potential source of nonpublic information.
According to the FBI, between January 31, 2020 and April 7, 2020 this person and Burr exchanged approximately 32 text messages, nearly all of which were related to the COVID-19 Pandemic.
The government writes in the affidavit that the text messages include those discussed above, as well as ones about efforts to provide face masks to the public.
The government could have used this information to strengthen their case against him.
The Justice Department does not usually explain why it does not prosecute people.
The Department of Justice informed me tonight that it has concluded its review of my personal financial transactions that took place early last year.
The case is finished. I'm happy to hear it. During this difficult time for our nation, I will continue to work for the people of North Carolina.
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