NMB BOARD MEMBER GERALD FAUTH, III DUMPS STOCK

AT THE SAME TIME AS HIS BROTHER IN LAW REPUBLICAN SENATOR RICHARD BURR

NO JUSTICE, NO PEACE

ProPublica recently broke the story that Republican Senator Richard Burr of North Carolina dumped stock on February 13 - shortly before the stock market crashed due to Covid-19. Burr’s brother-in-law, Gerald Fauth, III. was appointed by Donald Trump to the National Mediation Board (NMB) in 2017.   Fauth also dumped enormous amounts of stock on February 13.

NO JUSTICE, NO PEACE

ProPublica went on to report that: Fauth avoided between $37,000 and $118,000 in losses by selling off when he did, considering how steeply the companies’ shares fell in recent weeks, according to an analysis by Luke Brindle-Khym, a partner and general counsel of Manhattan based investigative firm QRI. Brindle-Khym obtained Fauth’s financial disclosure from the Office of Government Ethics and shared it with ProPublica.  

NO JUSTICE, NO PEACE

Government forms only require that the value of stock trades be disclosed in ranges.   After the February sales, the total value of Fauth’s individual stock holdings appears to be between $680,000 and $2 million

NO JUSTICE, NO PEACE

The alleged crime here is that Burr and other Senators used classified information they had access to as members of the Senate Intelligence and Health Committees to enrich themselves, and in Burr’s case, his family. Shortly after their stock dump, the NYSE fell 30%. ProPublica then notes that:

NO JUSTICE, NO PEACE

Before his sell-off, Burr had assured the public that the federal government was well-prepared to handle the virus. In a Feb. 7 op-ed that he co-authored with another senator, he said “the United States today is better prepared than ever before to face emerging public health threats, like the coronavirus.”

NO JUSTICE, NO PEACE

As of this writing, the FBI is investigating. Burr has resigned his position as Chairman of the Senate Intelligence Committee in shame. He won’t run for reelection.

NO JUSTICE, NO PEACE

Let us now consider brother-in-law Gerald. On that fateful day (February 13), Fauth sold off stock in petroleum and retail firms which were likely to take a hit as Covid-19 impacted the economy.

NO JUSTICE, NO PEACE

This hits close to home for us in the BMWED, as the National Mediation Board plays a central role in how we negotiate with the Railroads. Fauth’s presence on the Board is very problematic, and reflects the great lie that Donald Trump ran on in 2016 –that he would “drain the swamp” in Washington, DC. Rather than drain it he just made it deeper with more and more corruption.

NO JUSTICE, NO PEACE

Gerald Fauth III is one of the latest of thousands of examples. We need to clean house in the November 2020 elections and ensure that the present government is replaced if Rail Labor is to find success in this round of bargaining with the freight carriers and with the coming round on Amtrak. used classified information they had access to as members of the Senate Intelligence and Health Committees to enrich themselves, and in Burr’s case, his family.

NO JUSTICE, NO PEACE

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