- Breaking down Pfizer’s CEO stock sale: Securities lawyer
- Secret meeting gave rise to insider trading allegations
- Loeffler tried to take control of the situation
Breaking down Pfizer’s CEO stock sale: Securities lawyer
Former Bakkt CEO Dumps Shares After Received Insider
Former CEO and Senator Kelly Loeffler (R-GA) Accused of Insider Trading
She and another senator sold millions of dollars in shares after a secret meeting in January
Loeffler denies responsibility for managing his own assets
International consortium of news organizations developing transparency standards.
Former Bakkt CEO and now Senator Kelly Loeffler (R-GA) is the second US government official to sell shares after a private session of senators on January 24. Many experts claim this is a egregious case of insider trading.
It looks like the Trump administration knew that the coronavirus would disrupt global markets and the daily lives of citizens long before it happened. Apparently, this issue was discussed at a closed meeting of senators on January 24.
Secret meeting gave rise to insider trading allegations
The meeting, held on January 24, raised many questions and insider suspicions. To date, two senators have already confirmed the sale of their assets before the massive market crash in late February and March. One of them was the former head of Bakkt Kelly Loeffler.
“Thank you for today’s briefing from the Ministry of Health on the new coronavirus outbreak,” she tweeted on the day of the meeting. Loeffler then sold 27 of her 29 investments. The result was the dumping of millions of dollars right before the crash, as if she knew it beforehand. [Daily Beast]
Senator Richard Barr (R-NC) is accused of doing the same: dumping $ 1.6 million in shares after a secret briefing on the economic impact of the coronavirus. [Mother Jones] It is also hardly a coincidence that Richard Barr and Senator Loeffler sat next to each other during the meeting..
And the point is not whether Senator Loeffler had the right to do so or not. The public is furious that information has been hidden from them and misled. At that time, everyone was told that there was no cause for concern. But behind closed doors we still knew that we were on the verge of a global financial panic..
Loeffler tried to take control of the situation
Instead of confessing to what he had done, Loeffler tried to refute all charges and absolve himself of responsibility for asset management. In a recent tweet, she called the accusations “a ridiculous and unfounded attack.”.
This is a ridiculous and baseless attack. I do not make investment decisions for my portfolio. Investment decisions are made by multiple third-party advisors without my or my husband’s knowledge or involvement.
– Senator Kelly Loeffler (@SenatorLoeffler) March 20, 2020
However, as many point out, no prudent portfolio manager would advise their clients to dump nearly all of their assets without a good reason. In addition, such actions require client approval..
Except for the fact you and other senators sold stocks after being in meetings about a pandemic, the fact that you also bought stocks in teleconferencing companies you knew would do well, and the fact your husband is the chairman of the NY Stock Exchange, this defense checks out!
– Mike Drucker (@MikeDrucker) March 20, 2020
In addition, on March 11, she assured her readers that “the economy is strong,” although by then she had already gotten rid of her shares..
The accusations against the former Bakkt CEO are dire. While it is hardly surprising, given that the exchange she led promised to trade contracts with physical delivery of bitcoins, this turned out to be a lie. Bakkt has gone from being an over-hyped platform to being a non-name in the cryptocurrency space. Insider trading charges against Senator Loeffler are another disappointment familiar to the denizens of the cryptocurrency industry.
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