Federal prosecutors and the Securities and Exchange Commission are looking into Senate Majority Leader Bill Frist’s sale of stock in HCA Inc. at a time when insiders at the hospital operating company were also selling off shares.
HCA, based in Nashville and founded by the Frist family, said Friday that it had received a subpoena from prosecutors for the Southern District of New York, asking for documents the company believes are related to Frist’s stock sale.
Prosecutors also have contacted the senator’s office, Frist spokesman Bob Stevenson said. He said neither the senator nor his office had received a subpoena.
Frist, a Tennessee Republican, has been considered a potential presidential candidate in 2008. Aides say he sold his stock to avoid any appearance of a conflict of interest.
Frist’s office confirmed the SEC was looking into the sale.
“As with the SEC, the majority leader will provide the U.S. attorney’s office with any information that it needs with respect to this matter,” Stevenson said.