The Daily Sandwich

"We have to learn the lesson that intellectual honesty is fundamental for everything we cherish." -Sir Karl Popper

Location: Boston, Massachusetts, United States


Friday, November 18, 2005

New charges levelled at Frist

Frist has flatly denied that he had anything to do with a felicitous sale of stock in his own family's company that prevented him from losing big bucks just before the stock's value dropped.

Now it looks like he used the same tactic-- with stocks connected to the Frist family-- on several other occasions to benefit his sons' portfolios.

A consumer advocacy group called Wednesday for the Securities and Exchange Commission to expand its inquiry into the stock trades of Senator Bill Frist, the Republican leader, saying it had uncovered "questionable transactions lucrative to Frist family members."

The commission is already investigating the senator's decision to sell all of his stock in HCA Inc., the healthcare giant founded by his father and brother, shortly before the price hit a peak and then plummeted. Mr. Frist, whose records, along with company's, have been subpoenaed, has repeatedly said that he has done nothing wrong.

Now the advocacy group, Public Citizen, says financial disclosure documents filed by Mr. Frist reveal several additional "exceedingly well-timed transactions" made by trusts that manage investments for his three sons. All involve healthcare companies that at one point had ties to the Frist family.