The brother-in-law of Sen. Richard BurrRichard Mauze Burr Former Republican Representative Mark Walker responding to calls regarding the withdrawal of the North Carolina Senate candidacy, the candidacy for the House of Representatives Financial corruption and a return to founding principles Framing our future beyond the climate crisis PLUS (RN.C.) was ordered to testify in an insider trading investigation investigating the stock sales he and the senator made before the stock market crashed as COVID-19 began to spread in the United States. USA
The Securities and Exchange Commission (SEC) announced in a statement On Wednesday, US District Judge Andrew Carter Jr. gave the agency the authority to enforce a subpoena against Gerald Fauth, Burr’s brother-in-law, to force him to testify in the investigation.
He was initially issued an investigative subpoena in May of last year requesting his testimony, but he did not comply, citing health concerns.
According to CNN, Fauth pointed to a serious medical condition that he said should have prevented him from being questioned under oath due to the stress it would cause.
The SEC will now be tasked with providing documents and issues a week before Fauth answers questions under oath from a remote location, according to CNN. The testimony will reportedly last 2.5 hours and have unlimited breaks.
The Hill reached out to Burr for comment.
The SEC revealed in a court filing last month that it was investigating Burr’s sale of nearly all of his stock holdings on February 13, 2020, after he attended classified briefings on the spread of COVID-19.
The sale amounted to more than $ 1.6 million.
The SEC also said it was investigating Fauth, who made similar sales the same day after Burr called him on the phone minutes earlier.
Lawyers for both men have denied any wrongdoing, CNN reported.
“Among other things, the Commission is investigating whether [Burr] sold shares based on material non-public information, ”the SEC said in October presentation in the District Court for the Southern District of New York first reported by ProPublica.
The agency said it “appears” that the senator had access to non-public information as chairman of the Senate Intelligence Committee, through his seat on the Senate Committee on Health, Education, Work and Pensions (HELP), and from his former employees who played a role in an effort to combat the pandemic when it decided to sell the majority of its shares.
The SEC said the senator contacted his broker on the morning of February 13 with instructions to sell more than $ 1.6 million in shares in the joint individual retirement account (IRA) of him and his wife. Fauth then called his sister, Burr’s wife, two hours later, which was followed by a brief call to Fauth from the senator, according to the SEC.
Three minutes after the second phone call, Fauth allegedly contacted his broker with instructions to sell various holdings from his wife’s IRA account.
Investors are prohibited from buying or selling securities based on non-public information until it is made public, in accordance with federal law, as that information would likely affect stock prices. Trading on the basis of non-public information is known as “insider trading”.
The Stop Trading on Congressional Knowledge Act, or STOCK Act, prohibits members of Congress from getting rich by conducting financial transactions based on non-public information.