Eight Democratic Senators on Tuesday asked U.S. regulators to launch an investigation into billionaire Carl Icahn’s activities in the U.S. biofuels blending credit market, saying the activist investor may have violated securities trading laws since becoming an adviser to President Donald Trump.
The letter was signed by Democratic Senators Elizabeth Warren of Massachusetts, Sheldon Whitehouse of Rhode Island, Sherrod Brown of Ohio and five others. The letter acts as a request, and the agencies are not required to act upon it.
Icahn became an unpaid adviser to Trump on regulation shortly after November’s presidential election. In February Icahn proposed a change to the U.S. biofuels program that would ease the regulatory burden on oil refining companies - including CVR Energy Inc, in which he owns a majority stake.
“We ask that your agencies investigate whether Mr. Icahn’s conduct violated any laws under your jurisdiction,” they said.
CVR Energy’s refining unit posted a net gain of $6.4 million associated with the credits in the first quarter of this year, a $50 million turnaround from the year-ago period when CVR shelled out $43.1 million, the company said in a filing.
Icahn has previously dismissed accusations that his proposal to the White House to change the biofuels program was self-serving, saying the overhaul would help other refining companies too, including his competitors.