The Securities and Exchange Commission and federal prosecutors are investigating Senate Majority Leader Bill Frist's sale of stock in HCA Inc., the hospital operating company founded by his family.
In a statement released Friday, the Nashville-based company said federal prosecutors for the Southern District of New York issued a subpoena for documents HCA believes are related to the sale of its stock by the senator.Frist's office confirmed the SEC is looking into the sale. (. . .)
Frist asked a trustee to sell all his HCA stock in June, near a 52-week stock price peak of $58.40 and at the same time HCA insiders were selling off shares. Reports to the Securities and Exchange Commission showed insiders sold about 2.3 million shares, worth about $112 million, from January through June, said Mark LoPresti of Thomson Financial.
The sale came about two weeks before the company issued a disappointing earnings forecast that drove its stock price down almost 16 percent by mid-July. They still have not recovered, closing Thursday at $45.90.
The value of Frist's stock at the time of the sale was not disclosed. Earlier this year, he reported holding blind trusts valued at $7 million to $35 million.