SEC Initiates Formal Investigation of Frist
by TChris
Sources report that the SEC yesterday "authorized a formal order of investigation of [Sen. Bill] Frist's sale in June of HCA Inc. shares."
The order allows the agency's enforcement unit to subpoena documents and compel witnesses to testify, said the [sources], who asked not to be identified because the order hasn't been made public.
Whether or not Frist's suspiciously timed stock sale was based on an insider's knowledge (background here and here), this isn't a good development for a politician who plans to run for president.
"This turns the flame up under the kettle and keeps the water boiling," said Stuart Rothenberg, editor of the independent Rothenberg Poltical Report in Washington. "It means he's going to continue to be peppered with questions about this stock sale, and no politician wants to be questioned about things like that."
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