Senator Frist Sold Stock Before Price Dropped

[im10ashus]

This could get REAL interesting.

Senator Sold Stock Before Price Dropped
Shares Fell Two Weeks Later

By Jonathan M. Katz
Associated Press
Wednesday, September 21, 2005; Page A03

Senate Majority Leader Bill Frist, a potential presidential candidate in 2008, sold all his stock in his family's hospital corporation about two weeks before it issued a disappointing earnings report and the price fell nearly 15 percent.

Frist held an undisclosed amount of stock in Hospital Corporation of America, based in Nashville, the nation's largest for-profit hospital chain. On June 13, he instructed the trustee managing the assets to sell his HCA shares and those of his wife and children, said Amy Call, a spokeswoman for Frist.

Frist's shares were sold by July 1 and those of his wife and children by July 8, Call said. The trustee decided when to sell the shares, and the Tennessee Republican had no control over the exact time they were sold, she said.

cont'd...

http://www.washingtonpost.com/wp-dyn/content/article/2005/09/20/AR2005092001767.html

[nothingshocksmeanymore]

1. Call him Martha

[im10ashus]

2. Let's see if he gets the same treatment.

Although he would be pardoned within minutes.

[Sabriel]

12. Helllllooooo, Dr. Stewart!!!

I sure hope I get to see Leno/Letterman making prison jokes about you soon. Maybe we can watch videotape of you in your cell and offer opinions about how you're doing! I can't wait.

[MADem]

26. Bet he can't cook like her, or do crafty things, either!

He might be able to learn some of those skills in jail, though!

[Totally Committed]

3. Not only that, but...

I don't know how many of you are aware that his "family business" hospital chain is the largest provider of on-demand for $$$ abortions in the U.S.

HYPOCRISY is the family business. They don't believe in abortion, and he has made his name in the Senate opposing a Woman's Right to Choose, but if you got thr $$$, he's got a hospital chain that will make you fetus-free, no problem.

Why haven't the Democrats gone after him on this?

TC

[CitrusLib]

4. THAT is an excellent question!

What a hypocritical crook. Why aren't these bastards being taken down faster? I am utterly mystified!!

[im10ashus]

6. WOW!

I did NOT know that. Do you have a link for that? I know someone would be REAL interested in that.

[Career Prole]

25. According to this conservative weekly, yes indeed!

http://www.humaneventsonline.com/article.php?id=504

[ChairmanAgnostic]

8. too many democrats are spineless lazy yellowbellies -

and I mean lazy. NOT ONE DEMOCRAT read through the Patriot Act before clicking their heels three times and turning into a lemming. Not one.
So, how can we expect them to read about one of the most dangerous opponents they have - someone who is actually harming the US public with his legislation and policies?

Senator "Martha" Frist is a rich, hypocritical, smarmy, opportunist on the surface. But deep inside, I do believe he is fully comfortable with the NeoConMen theorists and plotters. Despite his self-proclaimed xtian beliefs, which he wants to promote over all of us, he is a dirty, dishonest, dolt - someone who should be an easy target. But, no. We leave him alone. We even leave Tom DeLay alone.

("Oh dear, we democratic office-holders can't be partisan. our diminishing base will turn on us.")

WHY no Democratic research team dedicated to Frist, DeLay, Lott and other neoconmen? Why no Democratic publications and talking points? Why no forcing of issues that will hurt so many poor and unrepresented?
Because those in office are spineless yellowbellies who forgot who voted them into office. They have drunk from the bowl of the Bloatway waters, and have smelled the odor of power. They have become addicted to DC as it is. Change would shake them us as much as the GOP neoconmen.
-

Sorry. I am venting. Read the NYT and realized that it has become a conservative paper. Then I read the Chicago TRib and got really REALLY angry. Here's why:

Headline - Page 1. "Some in city give Bush benefit of doubt"
But one page 15, the article continued, "less than 40% of Americans support him and find him on the wrong track. IN fact, that article was actually CRITICAL of the president and noted a rapidly falling level of support across all aspects. You would never know it from the headline, though.

[im10ashus]

9. Good points all of them.

AND they let the FEMA guy in with ONE hour of questioning. Spineless hacks.

[ChairmanAgnostic]

15. at least Schumer apologized for that happening.

But a dollar late and 2000 lives short, doncha think?

Heck, my :sarcasm: favorite Dem Senator Lieberman did most of the fawning questioning of the FEMA guy.

My worry is that some dems who do have brains and spines are being held back by the DLC and more senior people. For ex, it was shameful when Durbin retracted his words. It is even more shameful that Obama is sitting back.

If there were ever an opportunity to move, to make things happen, it is now. Instead, we see the general public taking action and complaining - and our reps and sens still sit there inert.

I read another thread which noticed that the Stupid Ray must have been turned off. Yes, everywhere but its home base - DC.

[im10ashus]

16. I saw Schumer on Bill Maher

He was trying to be a comedian and Bill wasn't having it. At least Shumber DID apologize for the FEMA leadership. NOW they need to get off their collective butts and take back this country. Before the people do it for them and they are all out of jobs.

I like what Bill said about * not being a big fan of government and why would he want to BE in government. Basically, he said they (*, Dick, et al) are bankers with government jobs and that pretty much was IT in a nutshell.

[ChairmanAgnostic]

52. saw the replay yesterday. I agree with your analysis 100%

Schumer forgot that Maher points out stupidity, greed and inanity in politics. he does NOT create a forum for stand-up routines like the Tonight Show. Made Chuck look shallow, stupid and a bit craven. On the other hand, Schumer is not a sleep-walking wall-flower, like many others have been.

[im10ashus]

53. Tonight's episode should be interesting.

Christopher Hitchens will be on. It will be interesting to see if he is still kissing * butt. I forget who the other guests are.

[ChairmanAgnostic]

54. WITH galloway, no less!

Hot stuff, to be sure. OF course, it depends on whether Hitchens is sober or not.
then again. . .

[im10ashus]

55. THAT'S the one I couldn't think of.

He's brilliant and I hope that he and Hitchens are BOTH on the panel and not via satellite. Galloway would rip him to shreds. DAMN I hope this birthday party I am going to tonight is over by then. :-)

[snippy]

13. The Frist family business also holds the record for Medicare fraud.

From a June 2003 Department of Justice press release:

HCA Inc. (formerly known as Columbia/HCA and HCA - The Healthcare Company) has agreed to pay the United States $631 million in civil penalties and damages arising from false claims the government alleged it submitted to Medicare and other federal health programs, the Justice Department announced today.

This settlement marks the conclusion of the most comprehensive health care fraud investigation ever undertaken by the Justice Department, working with the Departments of Health and Human Services and Defense, the Office of Personnel Management and the states. The settlement announced today resolves HCA's civil liability for false claims resulting from a variety of allegedly unlawful practices, including cost report fraud and the payment of kickbacks to physicians.

Previously, on December 14, 2000, HCA subsidiaries pled guilty to substantial criminal conduct and paid more than $840 million in criminal fines, civil restitution and penalties. Combined with today's separate administrative settlement with the Centers for Medicare & Medicaid Services (CMS), under which HCA will pay an additional $250 million to resolve overpayment claims arising from certain of its cost reporting practices, the government will have recovered $1.7 billion from HCA, by far the largest recovery ever reached by the government in a health care fraud investigation.

. . .

http://www.usdoj.gov/opa/pr/2003/June/03_civ_386.htm

[im10ashus]

18. Great read!

Thanks for the link.

The whole family should be serving time. This is just another example of our corrupt government. If our democratic reps aren't going to do something soon, we need to step up to the plate and demand accountability. It's getting so the repugs are running rampant through the halls of congress and we just sit and watch. It's like a slow-motion train wreck.

[Lasher]

37. Or at least community service

We could all send in videos of ourselves and Frist could diagnose our medical conditions.

[im10ashus]

47. Or he could give us financial advice.

He seems to have more of a knack for financial matters than medical matters.

[cthrumatrix]

5. don't worry, Rush and Faux will ask for an "investigation"

[stillcool]

7. article from May 6 by Melissa Davis

<Just look at HCA Chairman Jack Bovender. On Feb. 2, with HCA's stock in an upswing on hopes for a recovery, Bovender sold 500,000 shares underlying options, clearing some $9 million. Other HCA insiders soon rushed to follow his lead with multimillion-dollar transactions of their own.>
<The same month that Bovender cashed in, two senior managers -- Treasurer David Anderson and Chief Investment Officer Noel Williams -- joined three vice presidents in executing or filing to do multimillion-dollar transactions.>
<"Historically, HCA insiders have been lucky in knowing when to sell," Young says. "Perhaps investors should be pondering if it is luck or a very keen understanding of the future.">
http://www.google.com/search?oi=stock&q=stocks:HCA&prev=/search%3Fq%3DHCA%26hl%3Den%26lr%3D%26c2coff%3D1

[Historic NY]

11. Insider trading.........????

"HCA insiders have been lucky in knowing when to sell"

[Lasher]

10. Shouldn't Frist's HCA sales be listed as insider trades?

I don't see any insider trades for Frist. Wonder why not?

http://money.excite.com/ht/rs/fin/it/h/hca.html

[Midlodemocrat]

19. They are in a blind trust. His brother's stocks are listed, though.

[Lasher]

34. According to the article...

All shares belonging to Frist, his wife, and children were sold between June 13 and July 6. I don't see any insider trades during that timeframe. Shouldn't some sales have been recorded, even though they were in a blind trust? And isn't Frist required to report these sales to the SEC, regardless of the blind trust?

Remember, Dubya dumped around $550K of Harkin stock, under questionable circumstances, when he was on their board of directors. He 'forgot' to report the transaction to the SEC. He got in trouble for that, but poppy fixed it for him.

I didn't see any sales for anybody named Frist on the insider trades list. Are his brother's sales listed somewhere else, or did I just overlook something?

[Midlodemocrat]

35. I got the info on his brother's shares from cbsmarketwatch.com

and then I did a little research on the net about the guy. I found an article talking about how Bill Frist's shares were in a blind trust.

I'll see if I can find it again and PM you the link.

[Lasher]

38. Thank you, Midlodemocrat (EOM) & n/t

[snippy]

49. But the beneficiary of a true blind trust has no authority to direct the

trustee as to what assets should be held in the trust or bought or sold by the trust. That is what makes it a "blind" trust. According to the article, Frist directed the trustee to sell the HCA stock. If true, the claim that the stock was in a blind trust is a lie.

[Midlodemocrat]

42. Here is the link which says Bill Frist's shares are in a blind trust.

http://64.233.179.104/search?q=cache:FCpAKfqyRNAJ:www.populist.com/03.03.oleary.html+%22thomas+f.+frist%22&hl=en

[berni_mccoy]

14. How much time did Martha do?

It's an important question for Dr. Frist to be asking...

[im10ashus]

20. She did more time than he will ever do.

He will be pardoned by *.

[Toots]

17. Hmmm Private sector health care loses money

Privatization is great right??????

[txaslftist]

21. "Martha Frist" has a nice ring to it.

[im10ashus]

23. Maybe he can share a cell with the Tyco guys.

They'd have much to talk about.

[txaslftist]

22. Hey, this needs one more vote to nominate. Please do.

[TNOE]

24. Here's the loop hole though

"The trustee decided when to sell the shares, and the Tennessee Republican had no control over the exact time they were sold, she said."

IF that can be proven - he escapes.

[nolabels]

27. Wouldn't he have to have a contractual agreement with the trust

You can't have it both ways legally, can you?

Unlike Martha Stewart he surely has many well placed crooks in government to help him out (* comes to mind)

With crooks running the government how could an entrepreneurial crook ever go wrong :shrug:

[Tesla]

28. Kepp this up to make him PROVE HIS INNOCENCE

Like they do anyone else!

[TNOE]

29. I'm no expert

but I know that the trustee (who is generally a law firm, bank or brokerage person) although many times a personal family friend who is business savy - has as his (its) duty to safeguard the trust funds and to invest and sell accordingly..... if the trustee had held on to the stock (knowing it was going to take a dive) he could have been sued for derelection of duty as trustee. I guess the kicker here is - what was his foreknowledge and how did he get it. But chances are since a trustee did the deed (again, if true) - I think it will be hard to go after Frist on this. Unfortunately.

[ElaineinIN]

31. It really depends

When I draft a trust that I know is going to hold a concentrated position in family stock, I usually give the trustee the ability to hold it as a concentrated position, even if it is going down, since its a family holding. Otherwise, most corporate trustees would immediately diversify the holding. As I'm gathering that these are blind trusts held for the purpose of Congressional ethics (:rofl:), I would imagine that they would contain these types of provisions.

I'm not a securities law expert, and I didn't sleep at a Holiday Inn Express last night, but I think that the insider trading laws would come into play if he was in a position to have confidential information and passed it along to the bank, even without the ability or direction to vote it. In addition, for securities law purposes, a trust can be deemed to be the affiliate of an insider if the insider (his spouse, or his kids living in his household)has a beneficial interest in the trust, which is usually voting control or a pecuniary interest. So the fact that he, his wife, and his kids had a pecuniary interest in the trust can be sufficient to trigger some, but not all, of the securities law reporting requirements if he is an insider of HCA for these purposes. I think. Any SEC types out there to correct me?

[im10ashus]

32. That's what I am finding out as well.

IF they can prove it was the Trustee and not Frist who made the choice. Most of the time, a Trustee would consult with the client, especially with a large amount of funds at risk. Most of the time but not always. It will be interesting to see this unfold.

[Inland]

45. Safe Harbor rules, SEC Rule 10b5-1. Here's a summary.

http://www.borisfeldman.com/Stock_Trading_Plans.html


What qualifies as a plan?
The regulation contemplates three types of written plans, any of which is sufficient to invoke the safe harbor protection: (i) a document specifying that particular trades will occur at specified prices, on specified dates, for specified numbers of shares; (ii) a document specifying a formula pursuant to which trades will occur; or (iii) a document granting an outsider complete discretion to make the trades, without access to any material nonpublic information about the company.



How specific does the plan have to be?
It depends on the type of plan. The simplest plan must be very specific with respect to date, volume, and price: "I will sell 5,000 shares on October 23, 2000 at $15 per share." The "trading model" plan must specify the formula or algorithm to be used in making the trades: "On the twentieth day of every quarter, I will sell sufficient shares at the market price that day to yield $25,000 in proceeds." The "delegation" plan can be relatively general: "I direct Jane Broker to sell up to 50,000 shares of stock over the next year at such times, in such amounts, and at such prices as she deems appropriate." Although the commentary does not specifically address the situation, it is likely that one can combine the second and third models: "I direct Jane Broker to sell 10,000 shares each quarter, so long as the price is at least as high as the 52-week rolling average."

[MissMarple]

40. That may be a conflict of interest. It should be a blind trust.

He shouldn't have any control over it.

[im10ashus]

43. Does that mean no input whatsoever?

I find it hard to believe he wouldn't be involved in his own financial assets. Just saying. :shrug:

[MissMarple]

44. Well, I always thought that was what they did. I could be wrong.

But Frist is in a position to affect legislation that he could have directly profited from. Like Cheney and ...say Halliburton. :crazy:

This was linked on post 41 below on this thread. And I thought a blind trust meant he would have no control. :shrug:

"Frist, a surgeon first elected to the Senate in 1994, had been criticized for maintaining the holdings while dealing with legislation affecting the medical industry and managed care. He has insisted that he was in the clear ethically because the shares were in a blind trust."

edit.
on down... Damn. It seems he could request a sale. Curious.

"To keep the trust blind, Frist was not allowed to know how much HCA stock he owned, Call said, but he was allowed to ask for all of it to be sold."

Here's the yahoo link: http://news.yahoo.com/s/ap/20050921/ap_on_go_co/frist_shares

[im10ashus]

46. Lots of good points.

I can't wait to get off work and research a little more. I would expect that he WOULD have some knowledge, even if he said he had no control, and that he would be VERY hands-on. Let's hope the SEC goes into their investigation without any prejudice.

[caligirl]

30. who prosecuted Martha? He should get a few phone calls about Frist

[RandomKoolzip]

33. Okay, lemme get this straight:

Tens of millions of dollars went into investigating Whitewater, when it was obvious from the start that there was no "there" there.

How much you wanna bet Frist's shenanigans will never ever be investigated?

[Lasher]

36. Help us get a majority in the senate in 2006 and I'll take that bet (EOM)

[im10ashus]

39. They will be investigated.

I believe they already are. The SEC doesn't fool around. Still want to wager?

:-)

[Nothing Without Hope]

41. More on this in a related thread - PLUS - HCA had a $1.7 BILLION FRAUD

settlement in June 2003 - it was the highest settlement ever.

Here's the other thread on Frist's seemig insider trading:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1795036

And here's the thread - don't miss it! - the massive health care fraud of his family company, HCA. This is the same company whose shares he dumped in such a timely manner recently.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x4819871

Guess he didn't know about either one, since he paints himself as such a man of God. :eyes:

[im10ashus]

48. Thanks for the links.

More than anything, I despise people who use G-d as a front for their corruption. For-profit hospitals should be abolished anyway. Just my opinion. :hi:

[Nothing Without Hope]

50. New NYT article on Frist's possible insider trading FINALLY mentions

the massive 2000-2003 HCA fraud settlements:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x4846742
thread title: NYT on FRIST’s possible insider trading - and HUGE 2000-3 HCA FRAUD

[texpatriot2004]

51. Frist could go to jail n/t