The inquiry into possible insider trading at Nashville-based Hospital Corporation of America (HCA) continued to gain ground on Thursday, as the company announced it has been informed that it is the target of a formal SEC probe. The inquiry, which began life as an investigation into possible conflict of interest surrounding Senate Majority Leader Bill Frist's (R-Tenn.) decision to sell his position in the company, now appears to be focused on other insiders.
Critics said the timing of the sale was too perfect to be coincidental. Frist and his allies reply the investigation is politically motivated. To be fair to Frist, not many observers are taking note of the fact that the sale--and others like it by key executives at the company--came at a time when HCA stock was at an all-time high. Something funny could be going on; but then again, the trades could just as easily have been sensible investing.
- see this article from the Tennessean