The general public may have only had a vague idea of who Kelly Loeffler is a couple of weeks ago. But they’re now learning more about the senator as some of her recent financial decisions have come to scrutiny.
Suspicious Financial Decision
As some may already know, Loeffler is said to be the richest person in the United States Congress. The Georgia senator reportedly has a net worth of half a billion dollars. And now, she’s receiving backlash after allegations of her involvement in insider trading activities with other of her fellow senators.
She is being accused of selling off millions worth of stocks ahead of the market crash that recently happened on March 9, which in turn resulted from the panic brought by the coronavirus pandemic. In total, the 49-year-old Republican politician unloaded $3.1 million of stocks.
Aside from her seat in Congress, Loeffler is known for being the CEO of the Intercontinental Exchange subsidiary Bakkt in 2018. She became the junior senator for the state of Georgia in 2020.
Inside Information
According to sources, Loeffler might have gotten a private briefing warning her about the possible negative impacts that the coronavirus may have on the economy ahead of it actually doing damage in the American stock market. The senator received this potentially classified information back in mid-February.
This resulted in her or her financial representatives being able to avoid losses by selling companies that may be affected negatively by the pandemic and buying stocks from companies that might be impacted positively.
As filings reveal, Loeffler sold her shares from T.J. Maxx, a retail chain, to buy shares from businesses that manufacture protective garments and equipment that may be used when dealing with the ongoing coronavirus pandemic.
Should it be proven that she used insider information to make these decisions, the act would be a violation of laws barring Congress members from profiting from stock market trades due to their position.
Loeffler’s Counter
Loeffler has since denied these allegations in an interview with Fox News. Emphasizing how she had a third-party person making her financial instructions, she said that the trades were done by her handlers but didn’t involve her directly at all. The same arrangement worked for her when she was still in the private sector, Loeffler said.
