On Wednesday evening, the FBI seized Sen. Richard Burr’s phone as part of its investigation into the large stock transactions the North Carolina Republican made just before the markets tanked in mid-March as the coronavirus pandemic worsened. Burr announced the following day that he would temporarily step aside as chair of the Senate intelligence committee, though he declared he’d “absolutely” serve until his term ends in early 2023.
Another senator, California Democrat Dianne Feinstein, also acknowledged on Thursday that she’d turned in documents to the FBI and spoken to investigators over large biotech stock trades made by her husband in January. A spokesperson for Feinstein, who is not up for re-election until 2024, said her cooperation with law enforcement was offered “voluntarily” and that the senator “provided additional documents to show she had no involvement in her husband’s transactions.”
A third senator, Georgia Republican Kelly Loeffler, has also received scrutiny about her own large trades right before the markets collapsed. Loeffler refused to say anything when reporters asked her on Thursday if she’d had any communication with the FBI, and a spokesperson evaded the question, saying only that "[n]o search warrant has been served" on the senator. Loeffler has maintained that her investment decisions are made by "third-party advisors" acting without her knowledge.
Loeffler faces tough competition from both parties in November’s special election, but Burr’s legal situation looks to be the most serious right now. As chair of the intelligence committee, Burr received briefings on the threat posed by the virus well before Donald Trump declared a state of emergency in mid-March. Burr sold a large portion of his stock portfolio in more than 30 separate transactions, including shares in hospitality companies that later saw their prices plummet. On Feb. 13, the same day that the senator made a number of his trades, Burr’s brother-in-law also shed at least $98,000 in stocks.
No matter what happens next, though, GOP leaders are likely to pressure Burr to remain in office through Sept. 4. If Burr were to depart before then, it would set off a special election this November for the final two years of his term, a contest that his party could very well lose. However, if Burr hangs on past that date, both the special election (for just the final two months of his term) and the contest for a regular six-year term would take place in November of 2022.
If Burr does bail before his term is over, he would, however, be succeeded by a fellow Republican, despite the fact that North Carolina's governor, Roy Cooper, is a Democrat. As WSOC TV's Joe Bruno explains, the state GOP would submit a list of three names to the governor, who would then appoint one of them. That appointee would only enjoy just a few months of incumbency before facing voters if Burr were to leave before early September, but a senator appointed after that time would have two years in office before the 2022 general election.
Given what we know of the various cases involved, it's not clear why Burr has received much greater legal scrutiny than other senators. However, some commentators, like former Nixon White House counsel John Dean, have charged that Trump is using the federal law enforcement apparatus to punish Burr. Burr has been a reliable Trump vote in the Senate, but his committee has been working on the final volume of a report that will conclude that Russia interfered in the 2016 election to help Trump. It’s not clear what will happen to the report now that Burr has stepped aside, though a spokesperson for the intelligence committee says it will still be released.
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