September 28, 2005
$2 million here, $6 million there, and soon you’re talking real money:
Senator Bill Frist, now subject to a formal investigation by the SEC for insider trading, made between $2 million and $6 million by selling his HCA holdings just before stock values plummeted in the face of a bad earnings report, according to an analysis released today by the nonprofit, nonpartisan Foundation for Taxpayer and Consumer Rights (FTCR).
“The amount of money involved makes Frist’s motive for insider trading clear,” said [the FTCR’s] Carmen Balber.
FTCR also pointed today to overly rosy earnings projections made by HCA executives at a conference with investors just as Frist and HCA insiders were dumping HCA stock en masse. The evidence shows insiders were deceiving the public and suggests a conspiracy within the company to defraud investors which Frist could well have been a part of. A transcript of HCA Sr. Vice President Vic Campbell’s misleading statements to investors, which FTCR is forwarding to the SEC today, is available [here]
The FTCR has the math.
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