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Fact Check

Kelly’s opponent has joined forces with AOC and The Squad to recklessly attack her. These accusations are baseless, desperate, and absolutely ridiculous.

When you hear one of these crazy attacks, please direct your friends, family, and coworkers to get the facts and help spread the truth. Together, we can defend Kelly, protect the American Dream, and stop the spread of socialism in our state and country.

What others are saying…

“Praise worthy transparency in Kelly Loeffler’s response to baseless charges re: her stock portfolio. Politicians on both sides must stop demonizing successful businesspeople with distortions. Her solution is a model for the rest of Congress.”

Steve Forbes, Chairman & Editor-in-Chief of Forbes Media

There is no systematic evidence in Loeffler’s disclosure forms of any attempt to profit from the pandemic or the policy response. The timeline doesn’t fit. The trades are, at best, all over the place. The private meeting in question almost certainly did not sound the alarm about what was coming at the end of February and into early March — more than a month later.”

Real Clear Politics

“Like I said, I am happy to assume that senators insider trade more brazenly than everyone else, but if you’re going to assume that you need to restrict it to cases when they seem to have insider traded brazenly. This is clearly not that.”

Bloomberg News

“Kelly Loeffler and David Perdue appear to have been unfairly targeted by national and Atlanta media.”

Dan McLaughlin, National Review

Here are the facts…

  • Allegations of improper trading by Senator Loeffler are false and based on a political attack by liberal media and career politicians to prey on the emotions of the American people during a global pandemic.
  • On Tuesday, May 26, the Department of Justice completely exonerated Loeffler and affirmed the fact that she did nothing wrong.
  • Conservative businesswoman Kelly Loeffler left a successful career in the private sector to deliver results for the people of Georgia. Her experience took her from being a job seeker starting as a waitress, to being a job creator for one of Georgia’s most successful start-up businesses. From the start, she has donated her congressional salary to non-profits benefitting Georgia, and has long been active in the Republican party.
  • Prior to public service, Senator Loeffler broke the glass ceiling in business and sports. She took the work ethic she learned on her family farm, and helped build Intercontinental Exchange (NYSE: ICE) from a start-up business into a Fortune 500 company.
  • Allegations of improper trading by Senator Loeffler are false and based on a political attack by liberal media and career politicians to prey on the emotions of the American people during a global pandemic.
  • Upon Senator Loeffler’s appointment in December 2019, both she and her husband, Jeff Sprecher, each hired separate legal counsel to advise on and establish compliance with Senate Ethics rules. While Congress is allowed to directly conduct trading decisions, Senator Loeffler and Mr. Sprecher do not trade or make investment decisions, and have long relied upon third-party investment managers to independently conduct their investment strategy and to implement trades. They are notified of these securities transactions only after they occur.
  • Senator Loeffler is a financial services professional with extensive experience in and recognition for appropriately handling material non-public information, financial disclosure and securities regulations. She and her husband have managed significant financial services businesses at the highest levels of compliance for nearly two decades. In the Senate, she has complied with the spirit and the letter of the law, including the STOCK Act.
  • Mr. Sprecher is the Founder, Chairman and CEO of Intercontinental Exchange, Inc. (ICE). The couple’s joint investment accounts and his sole investment accounts are compliant with company policy. To manage their holdings in ICE stock, they file Rule 10b5-1 trading plans, consistent with applicable SEC rules. They have pre-planned sales of ICE stock in Q1, Q2, and Q3 of 2020.
  • Allegations of improper trading are based purely on cherry-picking dates, omitting key facts and misrepresenting transactions contained in Senator Loeffler’s Periodic Transaction Reports (PTRs), rather than any actions that she took. The transactions have been mischaracterized and the media has refused to publish facts that they have to the contrary, including:
  • The investment accounts are governed by agreements that the couple does not have discretion over the trades that happen in the portfolios. The media has refused to acknowledge these documents.
  • The trades referenced by the inaccurate media reports did not create profits, rather they resulted in a loss of $1.3 million due to the bullish positioning of the portfolio, including positions in Delta, Chevron and Prudential.
  • The transactions were a mix of buys and sells, consistent with activity that is customary for their portfolios.
  • The portfolios are managed by outside investment managers, and in 2019 had a monthly average of 53 trades. The monthly average for first quarter 2020 was 48 trades.
  • Sen . Loeffler and her husband have created thousands of jobs and contributed to Georgia’s growth over the years. They believe that the rule of law, free markets and capitalism are the best tools for our society.
  • Senator Loeffler and her husband ceased holding individual stocks in their managed accounts to limit use of the couple’s business success as a weapon against them.
  • Consistent with the terms of her exit from Intercontinental Exchange, Senator Loeffler exercised stock options related to her compensation within a mandatory 60-day window pursuant to the December 20, 2019 exit agreement. Her transaction to cover the options exercise and tax liability was conducted in accordance with SEC Rule 10b5-1. Other than the voluntary liquidation of their individual stocks and pre-planning these routine, documented transactions, neither Senator Loeffler nor her husband have communicated any investment directives, or views on the market or company-specific securities with their investment managers since being sworn in.
  • With the release of her 98-page disclosure, multiple Periodic Transaction Reports, and the required filings associated with her previous employer, Intercontinental Exchange (ICE), Sen. Loeffler is incredibly transparent, fully compliant, and continues to adhere to the spirit and letter of the law. Any assertions to the contrary are baseless and politically motivated.
  • The items summarized in the PFD are Kelly Loeffler and Jeff Sprecher’s assets from January 1, 2019 – January 5, 2020 (the period immediately prior to Senator Loeffler’s first day in office on January 6, 2020).
    • NOTE: It is critical to remember these are securities that were held at any point from January 1 2019 to Jan 5, 2020. The Personal Financial Disclosure DOES NOT include details of any transactions that were made during Loeffler’s service in the U.S. Senate, other than the notes regarding liquidation.
  • Sen. Loeffler’s annual compensation (salary + bonus +equity) in 2019 as CEO at Bakkt and as a member of the Intercontinental Exchange management team, prior to becoming a Senator, was $3.5 million. She left a lucrative and successful job to step into public service and deliver results for Georgia families. Sen. Loeffler donates her congressional salary to local Georgia non-profits.
    • The various accounts, where 3rd party advisors plan their investment strategy and implement trades, appear on this report. However, these accounts were liquidated in April of 2020.
    • Shares of Intercontinental Exchange (ICE) stock, which accounts for a large majority of the couple’s investable assets appear within the E-Trade account. ICE stock is sold regularly under a pre-approved SEC Rule 10b5-1 plan.
    • Loeffler’s PFD details diverse holdings in stocks, bonds, real estate, and investments in a wide range of companies.
    • Sen. Loeffler and her husband have rental property in Coastal Georgia and invested in a fund that develops Class A and Class B mixed use apartments in communities throughout the state. These investments support Georgia’s robust tourism industry and the need for housing in growing parts of the Peach State.
    • Sen. Loeffler grew up on her family’s farm, which is still operational today. She continues to own farmland in her hometown. Corn and soybeans are grown on this land.
    • Sen. Loeffler and her husband are both strong supporters of higher education and have funded numerous 529 savings accounts so children of their extended family and those in need can attend college at no cost.
    • Sen. Loeffler and her husband invest in entrepreneurs and start-up businesses in a variety of industries. Through these investments they have helped create thousands of jobs and incredible economic growth.
  • Financial disclosure laws and rules require Congressional Members and certain Congressional staff to disclose any transaction exceeding $1,000 via the Periodic Transaction Report (PTR) “no later than 30 days after receiving ‘notification’ of the transaction, but in no case later than 45 days after such transaction.”
  • As reported in PTRs for 2/7/2020 and 3/12/2020, their advisors conducted transactions in Sen. Loeffler and her husband’s accounts. These transactions occurred between January 8 and February 14, 2020. As disclosed in the PTR, Sen. Loeffler was notified after the transactions were conducted on or after February 16, 2020.
    • For these two PTRs, Sen. Loeffler’s third-party money managers sold securities totaling $1,847,936.25 (53%) and also purchased securities totaling $1,582,008.85 (47%), which have unrealized losses of $222,759 as of March 27, 2020.
    • The advisors also sold put options, which is a bullish position, in companies like Delta, Aflac and Caterpillar, which have subsequently declined in value with unrealized losses of $651,655 as of March 27, 2020.
  • As reported in the third PTR filed on 3/31/2020, their advisors conducted transactions between February 20 and March 9, 2020. Sen. Loeffler was notified after the transactions were conducted, on or after March 1, 2020.
    • For this PTR, Sen. Loeffler’s third-party money managers sold securities totaling $845,557 (59%) and purchased securities totaling $590,557 (41%), which have unrealized losses of $190,186 as of March 27, 2020.
    • The advisors also sold put options, which is a bullish position, in companies like BP and Chevron, which have subsequently declined in value with unrealized losses of $381,960 as of March 27, 2020.
  • As reported in the fourth PTR filed on 5/1/20, their 3rd party advisors conducted transactions between March 16, 2020 and April 14, 2020. Sen. Loeffler was notified after the transactions were conducted, on or after April 1, 2020. 6 transactions were made before March 16, 2020 that were not included in previous PTRs and appear on this report.
    • For this PTR, Sen. Loeffler’s third-party money managers bought securities before April 1, 2020 totaling $2,539,579, sold put options in Archer-Daniels- Midland Company, and then liquidated individual stocks on April 7, 2020 and April 14, 2020 totaling $15,070,226. Of the securities purchased prior to April 1, 94% ($2,376,562) were part of a planned stock option strategy.
    • This report also shows that 3rd party advisors purchased put options totaling $2,247,751, which closes their positions in those options.
  • As demonstrated by the losses to date ($1.3 million) and consistent with Sen. Loeffler’s many public statements on the matter, the investment advisors for Sen. Loeffler and Mr. Sprecher were not acting on the basis of any material non-public information.

My family’s investments are managed by third-party advisers at Morgan Stanley, Goldman Sachs, Sepio Capital and Wells Fargo. These professionals buy and sell stocks on our behalf. We don’t direct trading in these accounts. These trades are disclosed routinely and publicly in reports to the Senate Select Committee on Ethics, in full compliance with transparency laws.

As longtime executives at a Fortune 500 financial-services firm, my husband and I put this arrangement in place to insulate ourselves and our colleagues from these sorts of unfounded accusations. In financial services, there is always a risk of coming into contact with nonpublic material information, so the decision to separate ourselves from directing our investments—long before I was appointed to the Senate in January—was an easy one. It is part of what has enabled us to operate throughout our careers with the highest level of integrity and transparency.

In its hunger to place blame, the media fixated on a fantasy of improper congressional trading, stemming from a Jan. 24 briefing I and other Senators attended with health officials. But based on contemporaneous reporting and public statements by the officials who provided the briefing, there was no material or nonpublic information discussed. All we did was meet public-health leaders and ask them questions about the emerging virus.

That same morning, a Centers for Disease Control and Prevention telebriefing made clear “we are still learning.” “While this situation poses a very serious public health threat, CDC believes that the immediate risk to the U.S. public is low at this time, but the situation continues to evolve rapidly,” explained Nancy Messonnier, director of the National Center for Immunization and Respiratory Diseases, who led the telebriefing. About the Senate briefing itself, Sen. Richard Blumenthal (D., Conn.), told The Hill, “what I heard in response to many questions is a tentative answer. . . . We need to know more.”

I knew when I started my campaign that our business success would become the target of attacks. That’s politics. But these allegations go well beyond what should be considered acceptable. We have spent our entire lives building careers based on integrity and hard work. I am dedicating my Senate career to serving and giving back to a state that has given me so much. Every quarter, I donate my salary to local charities because I came to Washington to make a difference, not a paycheck.

For these reasons, I am taking action to move beyond the distraction and put the focus back on the essential work we must all do to defeat the coronavirus. Although Senate ethics rules don’t require it, my husband and I are liquidating our holdings in managed accounts and moving into exchange-traded funds and mutual funds. I will report these exiting transactions in the periodic transaction report I file later this month.

I’m not doing this because I have to. I’ve done everything the right way and in compliance with Securities and Exchange Commission regulations, Senate ethics rules and U.S. law. I’m doing it because the issue isn’t worth the distraction. My family’s investment accounts are being used as weapons for an assault on my character at a time when we should all be focused on making our country safe and strong.

Throughout this crisis I’ve been working hard to contribute legislative provisions that support essential medical devices, rural health care, telehealth, small businesses and Main Street employers. I will continue to focus on serving our country and the people of Georgia.

Ms. Loeffler, a Republican, is a U.S. senator from Georgia.

Is the radical left peddling another false attack against Kelly? Let us know!

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