Friday, September 23, 2005

SEC Questions Frist About Possible Insider Trading

A spokesman for Senator Bill Frist, Republican of Tennessee, said Thursday that the Securities and Exchange Commission had contacted Mr. Frist's office about the sale in June of his shares in HCA, the giant hospital company founded by his family.
Mr. Frist, whose brother Thomas F. Frist Jr. is chairman emeritus and the largest individual shareholder of the company, disclosed earlier this week that on June 13 he asked the managers of blind trusts controlling many of his assets to sell any of his remaining shares in HCA.
The sales occurred just as the share price reached a new peak and shortly before the company's announcement in mid-July of lower-than-expected quarterly results sent the price tumbling.
Mr. Frist, the Senate majority leader and a potential presidential candidate, initially placed more than $10 million in shares of the company in his trusts, but his spokesman said he could not determine how much remained at the time of the sale.

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