Frist Won't Face Insider Trading Charges

Washington Post: SEC Investigation Into Ex-Senator's Stock Sales Ends With No Action

(AP)  The Securities and Exchange Commission has decided not to file insider-trading charges against former Senate Majority Leader Bill Frist in connection with the sales of stock in the hospital chain his family owns, The Washington Post reported Friday.

An 18-month investigation by the SEC staff and the U.S. attorney in the Southern District of New York ended without action against the Tennessee Republican, the Post reported.

Frist had a formal interview with Justice Department and SEC lawyers to address the stock sales in late January, the Post reported, citing unidentified sources.

In a statement, Frist said he had "acted properly" and that his only reason for selling HCA Inc. stock in his trust accounts was to "eliminate the appearance of a conflict of interest."

Frist spokesman Matt Lehigh said the doctor would not comment beyond the statement.

The sales came in 2005 as Frist was weighing whether to run for the Republican nomination for president, which he eventually decided against. When the sales came to light, he denied having any insider information about HCA.

"I've always conducted myself according to the highest ethical standards in both my personal and public life, and my family and I are pleased that this matter has been resolved," he said in the statement.

Federal officials in September 2005 opened the investigation into Frist's sales of all his stock in HCA, the Nashville, Tenn.-based company his father and brother founded. The sales were completed by July 1, 2005, two weeks before share prices fell 9 percent.

HCA insiders were selling off shares as early as January 2005, with the largest sales taking place in April, May and June of that year. The insider sell-off totaled about 2.3 million shares worth at least $112 million.

Frist had held HCA stock in a blind trust with approval of the Senate Ethics Committee and contended that he had no idea of its value or that of any of his stock holdings. Documents filed with the Senate showed that Frist was often updated by trustees about changes to his trusts, including the addition and sale of HCA stock. He also had HCA shares in other trusts.

[vastr-wcon]

Big surprise. The SEC is dominated by DickNBush nominees. Can you spell W-H-I-T-E-W-A-S-H?

[firststate]

The former Senate Republican Leader and rubber-stamper extraordinary isn't going to be charged by any agency in the DickNBush Administration. He sold his stock in the family created company 2 weeks before it fell 9%. First, he said he sold it to avoid the appearance of impropriety. Then he changed his story to, "it was in a blind trust." He said he had "no idea of its value or that of any of his stock holdings." "Documents filed with the Senate showed that Frist was often updated by trustees about changes to his trusts, including the addition and sale of HCA stock." Those updates meant it was hardly a blind trust but instead a sham allowing him to profit off family information at the same time his Senate position helped him with legislation favorable to companies in which he owned stock. Of course there will be no charges. 1. He's a Republican 2.
He followed DickNBush orders while Senate majority leader 3. Prosecuting him won't destroy any Democrats.

[hsinco-2009]

Smells like another Bush Administration pay-off to a co-conspirator enabler who have pillaged the US Treasury and reputaion worldwide.

[jn122736]

Re. Frist I wouldn't believe you if you were standing on a stack of bibles what you did in the BACK ROOM to the medicare bill is a disgrace and you helped yourself a doctor with the passage of that bill so how much did you pay the SEC to say insufficient evidence.
Posted by starleo146 at 05:57 PM : Apr 27, 2007
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starleo146; The S.E.C. is still under the control of the Bush administration. They could get fired if they even threaten to prosecute a republican even an ex senator majority leader.

Of course Jefferson hasn%u2019t been prosecuted yet either, but the jury/probe is still out on him.

[starleo146]

Frist I wouldn't believe you if you were standing on a stack of bibles what you did in the BACK ROOM to the medicare bill is a disgrace and you helped yourself a doctor with the passage of that bill so how much did you pay the SEC to say insufficient evidence.

[acctriangle]

Oh, isn't he lucky??!

[nvme3]

the only reason the SEC wont prosecute is insufficient evidence to prove the charges and Im sure the political appointments over the last 6 years doesn't come into play. BLind in this case is like putting spleened out fingers in front of your eyes, given the fact that he was updated regularly about stocks he wasn't supposed to know he had. Another Scumbag is gone from the senate, has justice been truly served? He did vote on issue that directly affected the HCA Corp. and sold it before preciptous drop. Just a coincidence I guess.