Senate Ethics Under Scrutiny: Feinstein, Allogene Stake & COVID Briefing Timing

This episode centers around two trades executed by Richard Blum, in late January and mid-February 2020, involving shares of Allogene Therapeutics (a biotech firm focused on cancer therapies). According to financial disclosures, the trades totaled between US$1.5 million and US$6 million. [3][6][8] Notably, the transactions came after a closed-door briefing (Jan 24) on COVID-19 risk, a moment when market-relevant, nonpublic information was being shared with senators—including Feinstein (though she says she did not attend). [6][4]

The timing raised concerns of potential insider trading or misuse of privileged governmental input. Feinstein emphasized that her assets are held in a blind trust, that she was not involved in the trades, and that the biotech firm was unrelated to any coronavirus work. [4][6][1] She also publicly denied attending the Jan 24 briefing. [6][2]

Investigations by the FBI and DOJ into Feinstein’s case were opened, as part of a broader probe into stock trades by multiple senators. By late May 2020, authorities formally ended investigations into Feinstein, Loeffler, and Inhofe, leaving only Senator Burr’s case active amid wider public scrutiny. [3][8][4] No legal findings of wrongdoing were made in Feinstein’s case. [3][8]

Strategically, this case spotlighted structural governance issues: the adequacy of disclosure laws, the effectiveness of blind trusts, gaps in oversight, and public trust vis-à-vis legislators’ investment activity. It played a role in galvanizing calls for more stringent trading restrictions and greater transparency under the STOCK Act and Senate ethics rules.
Key questions remain: how reliably blind trusts separate asset flows from public office; what constitutes material nonpublic information in health crises; how oversight agencies can act preemptively rather than reactively.