Pinch Me, I Must Be Dreaming,...

Grand Ayatollah Frist has some explaining to do.

Frist stock sale draws federal scrutiny

WASHINGTON (AP) — Federal prosecutors contacted Senate Majority Leader Bill Frist's office about his sale of stock in HCA (HCA), the hospital operating company founded by his family. The Securities and Exchange Commission began an investigation, too, and prosecutors asked HCA to turn over documents about the transaction.

Prosecutors from the Southern District of New York contacted Frist's office "to inquire about the sale," spokesman Bob Stevenson said Friday. He did not say when the office was contacted, but said neither the senator nor his office had received a subpoena.

AP
Frist

Frist's office previously 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.

The company said Friday that federal prosecutors for the Southern District of New York had issued a subpoena for documents HCA believes are related to the sale of its stock by the senator.

The SEC also contacted HCA on Friday to informally request copies of the subpoenaed documents, HCA spokesman Jeff Prescott said. "We of course will comply with that request," he said.

Frist traded using only public information, and only to eliminate the appearance of a conflict of interest, Stevenson said.