POLITICS: SEC subpoenas Frist in stock probe, page 1

A subpoenaed has been issued to Senate Majority Leader Bill Frist to turn over his personal record. The records are to be used in an investigation into insider trading. At question is recent sales of HCA Inc. which was founded by Frist's father and brother. The sales occurred just days before a major drop in HCA stock price following a disappointing profit outlook.

news.yahoo.com
WASHINGTON (Reuters) - Senate Majority Leader Bill Frist has been subpoenaed to turn over personal records in an investigation into possible insider trading, two leading U.S. newspapers reported on Thursday.

The U.S. Securities and Exchange Commission issued the subpoena within the past two weeks, reported The Washington Post and The Wall Street Journal, both citing sources familiar with the probe.

Bob Stevenson, spokesman for the Tennessee Republican, said subpoenas are routine in SEC inquiries.

"Senator Frist has been fully cooperating with the authorities conducting the inquiries and will continue to do so. ... The issuance of a subpoena would be an expected and normal part of that process," Stevenson said in a statement.

Authorities are looking into Frist's recent sale of shares of hospital operator HCA Inc., co-founded by Frist's father and brother. The sales took place just days before HCA's stock price fell on a disappointing July 13 profit outlook.

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There seems to be a definite conflict of interest here with the "blind trusts" set up in the Senate. Ethically if insider trading occurred, Frist should own up and be prosecuted to the extent of the law. However it also seems that the Senate rules on these types of blind trust also needs to be looked at as well. At any rate, this spells trouble for Frist's plans to run for president in 2008.