Former Bakkt CEO Dumped Up to $3.1M in Stocks Ahead of Market Crash After Covid-19 Briefing
- Kelly Loeffler dumped millions in stocks after downplaying coronavirus in the public
- “Ridiculous & baseless attack. I don’t make investment decisions for my portfolio,” said the former CEO of regulated Bitcoin trading platform Bakkt in response
The newest member of the Senate, Kelly Loeffler (R-GA) sold a million dollars worth of stock shares in the days after a private meeting on coronavirus (Covid-19) that hammered US equities.
Appointed to her office by the Georgia state’s governor, Loeffler then put money into a technology company that sells telecommunicating software.
On January 24, the former CEO of regulated Bitcoin trading platform Bakkt reported the first of 29 of stock transactions jointly owned by her and her husband, Jefferey Sprecher, founder of ICE and chairman of Nasdaq.
This has been the very day, her committee, the Senate Health Committee hosted a private briefing about the novel coronavirus outbreak.
The Daily Beast reported, that Loeffler sold up to one hundred thousand dollars in stocks in Resideo Technologies, which has lost 55% of its value since then. She then made purchases in amounts between $100k and $250k in Citrix, a tech company offering telecommunicating software, per recent filings cited by the Senate Ethics Committee.
In total, Loeffler reported selling stock jointly owned with her husband worth between $1,275,000 and $3,100,000.
All the while, Loeffler downplayed the public health and financial threats posed by the virus. “Democrats have dangerously and intentionally misled the American people on Coronavirus readiness,” she tweeted on Feb. 28.
Concerned about #coronavirus? Remember this:
The consumer is strong, the economy is strong, & jobs are growing, which puts us in the best economic position to tackle #COVID19 & keep Americans safe.
— Senator Kelly Loeffler (@SenatorLoeffler) March 10, 2020
Late Thursday night, Loeffler tweeted,
“I want to set the record straight: This is a ridiculous & baseless attack. I don’t make investment decisions for my portfolio. Investment decisions are made by multiple third-party advisors without my or my husband's knowledge or involvement.”
She also said that she was informed of the purchases and sales only three weeks later on Feb. 16.
Loeffler is not only one who was guilty of selling a significant number of stocks several weeks ahead of the crashing of the markets. Richard Burr Chairman of the Senate Intelligence Committee, dumped between six hundred thousand and just over a million in shares on Feb. 13, shortly after the markets crashed and before he was privately warned of havoc coronavirus was poised to wreck.
Burr was one of the three senators who voted against the legislation in 2012 that banned congressional insider trading.
Leofller has been facing scrutiny over potential conflicts of interest from the beginning of her tenure. Her finances are also directly tied to her electoral fate as she pledged to spend $20 million on her bid to hold onto her seat in November when faced for the first time.