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Frist records subpoenaed by SEC in investigation into stock sale

[JURIST] The US Securities and Exchange Commission [official website] has subpoenaed personal records of Senate Majority Leader Bill Frist [official website] in its investigation into possible insider trading by Frist, the Washington Post reported Thursday [WP report, registration required]. The subpoena was reportedly issued at some time in the past two weeks, sources said. The SEC's investigation had previously been announced [JURIST report], but Frist had not disclosed that any records were subpoenaed. The allegations of insider trading arose following Frist's sale of HCA Inc. [corporate website] stock in July, only days before the company released revised profit expectations that pushed stock prices downward. HCA was originally formed by Frist's father and brother [HCA backgrounder], and his brother, Thomas F. Frist Jr. [HCA profile], remains on the company's board. Frist is expected to testify under oath in the investigation as to what he knew prior to his sale of the stock. He has denied having inside information prior to the sale, which he said he began taking steps to complete in April. Reuters has more.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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