New York attorney general Elliot Spitzer is believed to have launched an investigation into Senate Majority Leader Bill Frist's sale of his position in HCA in July. The Wall Street Journal reports that the SEC is also looking into charges that Frist acted on insider information when he divested his shares in the company shortly before HCA issued an earnings warning. The Journal quotes "sources close to the investigation" as saying investigators will also look at similar sales by 7 HCA executives in the months leading up to the sale. Yesterday a spokesman for Frist said again that the sale was "intended to eliminate the appearance of conflict of interest."
- see this story from the Wall Street Journal (sub. req.)