Frist's Political Future Darkens Over Questions on Stock Sales

[Bush_Eats_Beef]

September 26th, 2005 10:57 am
Frist's Political Future Darkens Over Questions on Stock Sales

By Laura Litvan and Otis Bilodeau / Bloomberg

http://www.michaelmoore.com/words/index.php?id=4267

Sept. 26 -- At the start of this year, U.S. Senate Majority Leader Bill Frist was looking at a bright political future. He led his party to an expanded majority in the Senate in November and emerged as a leading Republican hopeful for the 2008 presidential race. Less than nine months later, that picture appears darker. Frist, 53, now faces inquiries into his stock sales by the Justice Department and Securities and Exchange Commission that threaten to undermine him politically and provide Democrats fresh ammunition with which to question their opponents' ethics. ``If there is really any evidence of insider trading, then he's in very serious trouble, and so is his party,'' said Gary Jacobson, professor of political science at the University of California in San Diego. ``It adds another brick to Democrats' argument that Republicans are corrupt.''

Frist may face a Senate investigation over communications he had with the trustees of his assets that suggest he had a greater measure of control than reported over the blind trust. He faces federal investigations into his HCA stock sale, probes that will likely delve into his telephone and e-mail records, legal experts said.

The Associated Press reported this weekend that Frist and his trustees had repeated contacts about his stock holdings. Documents on file with the Senate show the trustees for his family trusts wrote him nearly two dozen times between 2001 and July 2005, the AP reported. The AP said the documents list assets going into the account and assets sold, in some cases with dollar ranges for investment values. Frist spokeswoman Call said the senator's only communications with the trustee were over matters where disclosure is required by federal law or ethics rules.

The value of HCA stock in Frist's trusts at the end of 2000 was between $5 million and $25 million, according to a disclosure he filed with the Senate ethics committee when he established the accounts.

http://www.michaelmoore.com/words/index.php?id=4267

[Bob3]

1. you know - these really aren't hard rules to follow

at least for someone who's sense of what's right and wrong hasn't been destroyed by greed.

[Clark2008]

2. Couldn't have happened to a weirder guy.

I live in Tennessee and have always thought Frist was just evil and strange.

Needless to say, I've never voted for him.

[HereSince1628]

3. This makes little sense. Why put letters on file if the communication

was improper from the get go?

Time to go find out the legal meaning and requirements of a blind trust.

[yellowcanine]

4. Statement on Fristy's website:

“Senator Frist had no information about the company or its performance that was not available to the public when he directed the trustees to sell the HCA stock. His only objective in selling the stock was to eliminate the appearance of a conflict of interest.”

Here is the link for those with strong stomachs:

http://frist.senate.gov/


So Fristy is saying he was just lucky in his timing.
"Well, isn't that special?" says the Church Lady.

[CountAllVotes]

5. Cat killer Frist you will pay for this

How about a prison sentence for you? I hear Martha's jail cell is empty at the moment! :evilgrin:

:kick:

[samdogmom]

6. Obviously his personal greed overpowered his desire to be President.

This is so blatant. How did he ever think he was going to get away with it? If he does, my faith in the criminal justice system will be completely destroyed.

[HereSince1628]

7. Link to the senate's recommended contract for blind trusts for senators

http://ethics.senate.gov/downloads/pdffiles/trust.pdf


A couple of things that may help understand the developing story.

As far as I can tell, the only communication directing a sale that can be initiated by Frist is one taken to avoid a conflict of interest. It seems that other communication is very strictly limited.

The Trustee can communicate about the trust to the Grantor, so long as the communication is filed with the ethics committee within several days of the communication.