spain Posted April 27, 2007 Share Posted April 27, 2007 I am Clamoring Again! Friday, 04/27/07 Frist won't be charged with insider trading Federal probe of HCA stock sales is closed By CARRIE JOHNSON The Washington Post WASHINGTON — Ending an investigation that clouded the tenure of former Senate Majority Leader Bill Frist, federal prosecutors have decided not to file insider-trading charges against the Tennessee Republican for his sales of stock in a family-owned chain of hospitals. The U.S. attorney in the Southern District of New York and Securities and Exchange Commission staff last week sent Frist letters signaling that they had closed their joint, 18-month investigation. The letters essentially cleared him of wrongdoing. Frist said in a statement that he "acted properly" and that his only reason for selling stock in his trust accounts was "to eliminate the appearance of a conflict of interest." "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," Frist said. The stock probe had dogged Frist, a Nashville heart surgeon who rose through the political establishment with support from President Bush, since news of his directive to sell his remaining HCA Inc. shares became public in the fall of 2005. Frist decided against a run for the presidency in 2008 and left Congress last year to "take a sabbatical from public life," he said at the time. Frist's father and brother founded HCA, which grew into the nation's biggest hospital chain and last year became the subject of one of the largest-ever private investment buyouts, valued at $33 billion. The former senator fielded questions throughout his political career about the source of his wealth and whether his close ties to HCA influenced his position on health-care legislation and prescription drug prices. Timing was troubling At issue in the long-running investigation was the sale of all of Frist's remaining HCA shares in the summer of 2005, a few days before a downbeat forecast that sent HCA's stock price tumbling by 9 percent in a single day. Executives at the Equitable Trust and Northern Trust, who maintained Frist's stock in private accounts, sold the stock after receiving his orders. The timing triggered multiple federal investigations and months of complex legal reviews. Ultimately, Frist produced a paper trail that suggested he began the process of selling the stock in late April 2005, months before he knew of HCA's troubles. According to his records, he consulted with a staff attorney at that time, when he said he was unaware of HCA's problems in collecting payments from uninsured patients. The former Senate leader said that subsequent reviews by an outside attorney and a Senate ethics panel delayed the sale until the summer of 2005, the time of the company's financial downturn. Spokesmen for the SEC and Michael Garcia, the U.S. attorney for the Southern District of New York, declined to comment Thursday. In order to proceed with an insider trading case, authorities require proof that a person bought or sold stock on the basis of secret information that other investors would have wanted to know. The legal standards are high, particularly in the absence of incriminating documents and testimony from people involved in the decision to sell the stock. Frist's older brother, Thomas, a board member and former chief executive at HCA, also had been the subject of government scrutiny. It appears that he will not be charged either, sources familiar with the probe said. Lasting effect possible While the probe is over, it is unclear whether it will take a long-term toll. Frist suffered for his role in the political furor over Terri Schiavo, a comatose Florida woman who died in 2005 after her feeding tube was removed, when he gave a medical opinion, based on videotapes of her, that she had not suffered irreversible brain damage. He also lost ground when Democrats seized control of Congress in January in what was seen as a rebuke to Republican leadership. Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted April 27, 2007 Share Posted April 27, 2007 justice Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted April 27, 2007 Share Posted April 27, 2007 another hero exonerated!!! Quote Link to comment Share on other sites More sharing options...
spain Posted April 27, 2007 Author Share Posted April 27, 2007 justice The justice dept would love to bust a high profile guy like Senator Frist. I cant stand the guy, and he is responsible for banning online poker, but there must have been nothing there or he would be in jail. See Stewart, Martha. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted April 27, 2007 Share Posted April 27, 2007 The justice dept would love to bust a high profile guy like Senator Frist. Yeah, the US Attorneys office has a fantastic reputation for unbiased decision making right now. Quote Link to comment Share on other sites More sharing options...
Doc Holliday Posted April 27, 2007 Share Posted April 27, 2007 The justice dept would love to bust a high profile guy like Senator Frist. I cant stand the guy, and he is responsible for banning online poker, but there must have been nothing there or he would be in jail. See Stewart, Martha. I agree with this. The idiot did ban online poker which pizzes me off. that does not mean we need to fabricate evidence against him to put him in jail. Quote Link to comment Share on other sites More sharing options...
Furd Posted April 27, 2007 Share Posted April 27, 2007 I am not going to form an opinion until I hear what Alec Baldwin has to say. Quote Link to comment Share on other sites More sharing options...
skins Posted April 27, 2007 Share Posted April 27, 2007 The justice dept would love to bust a high profile guy like Senator Frist. I cant stand the guy, and he is responsible for banning online poker with my total support and constant attacks on his enemies, but there must have been nothing there or he would be in jail. See Stewart, Martha. fixed Quote Link to comment Share on other sites More sharing options...
Doc Holliday Posted April 27, 2007 Share Posted April 27, 2007 I am not going to form an opinion until I hear what Alec Baldwin has to say. Quote Link to comment Share on other sites More sharing options...
spain Posted April 27, 2007 Author Share Posted April 27, 2007 I am not going to form an opinion until I hear what Alec Baldwin has to say. Typical Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted April 27, 2007 Share Posted April 27, 2007 I am not going to form an opinion until I hear what Alec Baldwin has to say. Quote Link to comment Share on other sites More sharing options...
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