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Senator Richard M. Burr of North Carolina temporarily stepped down on Thursday as chairman of the Senate Intelligence Committee, a day after F.B.I. agents seized his cellphone as part of an investigation into whether he sold hundreds of thousands of dollars’ worth of stocks using nonpublic information about the coronavirus. The seizure and an accompanying search for his electronic storage accounts, confirmed by an investigator briefed on the case, represented a significant escalation of the inquiry by the Justice Department and the Securities and Exchange Commission. (Benner and Fandos, 5/14)

Hours later, Sen. Richard Burr of North Carolina stepped aside Thursday as chairman of the powerful Senate Intelligence Committee, calling it the “best thing to do.” Burr has denied wrongdoing. “This is a distraction to the hard work of the committee and the members, and I think that the security of the country is too important to have a distraction,” Burr said. He said he would serve out the remainder of his term, which ends in 2023. He is not running for reelection. (Tucker, Balsamo and Jalonick, 5/15)

The decision to execute a search warrant on a sitting member of Congress was approved at the highest levels of the Justice Department, a senior department official said. Such a move also requires federal prosecutors and agents to persuade a judge there is probable cause to believe a crime has been committed. Mr. Burr, who has denied wrongdoing, told reporters on Capitol Hill Thursday he will continue to cooperate with the intensifying investigation. “This has become a distraction to the work on a committee that’s really, really important to the national security and a distraction to its members, and I thought this was the best thing to do,” Mr. Burr told reporters. (Gurman and Duehren, 5/14)

At issue are stock trades Burr made before the market crash caused by the coronavirus pandemic. ProPublica reported that he dumped up to $1.7 million in stocks while assuring the public that the U.S. was well-positioned to withstand the outbreak. Burr and fellow Senate Republican Kelly Loeffler of Georgia faced scrutiny for dumping millions of dollars in stocks ahead of the economic downturn. Both have denied any wrongdoing. (Wise and Grisales, 5/14)

Burr came under scrutiny after ProPublica reported in March that he sold off a significant percentage of his stocks shortly before the market declined, unloading between $628,000 and $1.72 million of his holdings on Feb. 13 in 33 separate transactions. As chairman of the intelligence committee and a member of the health committee, Burr had access to the government’s most highly classified information about threats to America’s security and public health concerns. On the same day, Burr’s brother-in-law, Gerald Fauth, a member of the National Mediation Board, sold between $97,000 and $280,000 worth of shares in six companies — including several that have been hit particularly hard in the market swoon and economic downturn. A person who picked up Fauth’s phone previously declined to comment. (Faturechi and Willis, 5/14)

Also Thursday, aides to Sens. Dianne Feinstein (D-Calif.) and Kelly Loeffler (R-Ga.) acknowledged that the senators had been in contact with federal law enforcement. Feinstein had been questioned by FBI agents about stock sales, which she has said were done by her husband and without her knowledge, a spokesperson said. Loeffler’s office acknowledged she had turned over documents related to stock sales she says she did not actively participate in. (Barrett, Kim, Hsu and Sheperd, 5/14)

Donald Trump’s allies don't much like Richard Burr. But they'd prefer the president keep out of the criminal investigation of the senator. The revelation that Burr was under FBI investigation for potential insider trading rocked Capitol Hill on Thursday. But Trump, who often relishes commenting on the news of the day, was restrained when asked about the situation. And, if anything, his broader circle of family and friends was sharply critical of North Carolina Republican. (Kumar, 5/14)