Republican Senator Richard Burr faces serious charges of insider trading after he dumped $1.65M worth of hospitality stocks just before the pandemic him America. Sen. Richard Burr had been on committees that oversaw health issues and policy. His brother-in-law, Gerald Fauth has been ordered by a federal court to testify before the SEC.
Gerald Fauth’s testimony will help the SEC to further its inquiry into the serious allegations of insider trading. He has tried to dodge testifying directly, saying that medical conditions prevented him from facing stressful situations.
Senator Richard Burr has held a senior position on committees that oversaw health and American intelligence policies. He sold the hospitality stocks in February 2020, just before the pandemic hit the nation in full force, as per filing at the court. This sector was the hardest hit during the pandemic. Burr had been staying with Gerald Fauth when the sales of the stocks took place.
Lawyers representing both Richard Burr and Gerald Fauth have denied allegations of wrongdoing. As per the court’s ruling, the Securities Exchange Commission will provide the topics and relevant documents a week before Gerald Fauth’s remote testimony. The testimony will be restricted to 150 minutes each, with limitless breaks in between, according to the judge.
SEC Believes Gerald Fauth’s Testimony Vital To Determine Charges Of Richard Burr’s Insider Information
SEC said that they need testimony from Gerald Fauth to determine if insider information was used by Senator Richard Burr to dump stocks in the hospitality sector. The SEC has alleged that Senator Burr had sensitive information in his possession that helped him decide on selling stock he held in the hospitality sector.
Gerald Fauth had earlier requested the judge for permission to reply in a written format. The judge rejected Gerald Fauth’s request saying that he had been previously willing to face questions related to his approval as the National Mediation Board’s chairman.