Democrats Comment on Frist Stock Probe
Tennessee Democratic Party Chairman Bob Tuke released this statement following reports that Senate Majority Leader Bill Frist is under investigation by the U.S. Securities and Exchange Commission and federal prosecutors over his sell-off of shares in HCA Inc., the Nashville-based hospital chain founded by his family:
“When you look at the timeline, it’s troubling. One week, Senator Frist and a group of insiders are selling off millions in HCA stock. Then, just a short time later when disappointing earnings are released, the stock takes a dive. Given the fact that several HCA insiders apparently sold off stock at the same time, the situation merits a careful investigation. I’m sure the Securities and Exchange Commission and federal prosecutors are going to put these transactions under the microscope, as well they should.
“Unfortunately, the ones who really got hurt in this situation are the rank-and-file shareholders who bought or failed to sell HCA stock when Senator Frist sold his. They had no access to insider information. Senator Frist shouldn’t either. It’s not legal and it’s not right.
“Senator Frist’s continuing relationship with HCA has been a problem for a while. Remember: Before there was Enron and WorldCom, there was HCA. In 1997, the federal government accused HCA of defrauding taxpayers by filing false expense claims with Medicare. HCA settled that case by agreeing to pay $745 million in civil penalties. Senator Frist could have sold his HCA stock the minute he was elected to Congress in 1994 and avoided these kinds of questions. As it is, he needs to be held accountable.”
