Bill Frist

William Harrison Frist (born February 22, 1952 in Nashville, Tennessee) is a Republican U.S. Senator from Tennessee and a cardiac surgeon. Since 2003, he has served as Senate Majority Leader. He is frequently mentioned as a potential candidate for the 2008 Republican presidential nomination.

Frist and HCA-related controversies

Conflict of interest allegations

Frist placed his investments in a blind trust when he joined the Senate to avoid accusations of conflicts of interest. Asked in a television interview in January 2003 whether he should sell his HCA stock, Frist responded, "Well, I think really for our viewers it should be understood that I put this into a blind trust. So as far as I know, I own no HCA stock." However, Frist's blind trust provided him with regular updates on the status of his assets.http://www.post-gazette.com/pg/05268/577419.stm Some have suggested that this is because compliance with Senate ethics rules requires disclosure of the blind trust portfolios, and that no Congressperson can be unaware of their holdings.http://justoneminute.typepad.com/main/2005/09/none_so_blind.html

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Medicare investigation

Hospital Corporation of America was the subject of a decade-long Federal investigation into double-bookkeeping and suspected criminal fraud involving the bilking of Medicare, Medicaid, and Tricare (the federal program that provides health insurance to members of the military and their families). HCA has paid a total of $1.7 billion in fines, the largest fraud settlement in U.S. history. Shortly after Frist assumed his position as Senate Majority Leader, a final fine of $631 million was assessed and the ongoing Justice Department investigation into HCA was dropped. Rick Scott, who had been hired to run the company after Frist's brother's retirement, quickly left the company. Frist's brother, a billionaire, returned to HCA to get the company back on track; in addition, HCA was allowed to continue its Medicare contracts.http://www.laweekly.com/ink/03/08/news-ireland.phphttp://www.cbsnews.com/stories/2000/12/14/national/main257330.shtml

Related Topics:
Bookkeeping - Fraud - Medicare - Medicaid - Tricare

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Insider trading allegations

On September 20, 2005, the Associated Press reported that Frist sold his HCA shares, which had been in a blind trust, two weeks before the company announced that earnings would not meet expectations, which caused a substantial drop in the share price. A spokeswoman said that Frist told the trustee who managed his HCA shares to sell them on June 13, and Frist had no control over the exact date when they were sold. Frist further claimed that the order was given to avoid allegations of conflict of interest over his participation in healthcare legislation, and that he possessed no non-public information when the stock was sold. The U.S. Attorney for the Southern District of New York has issued subpoenas to investigate the sale, and the U.S. Securities and Exchange Commission is investigating. Frist has retained the Washington, D.C. law firm of Wilmer Cutler Pickering Hale and Dorr to defend him in connection with these investigations.

Related Topics:
September 20 - 2005 - Associated Press - June 13 - U.S. Attorney - Southern District of New York - Subpoena - U.S. Securities and Exchange Commission - Washington, D.C. - Wilmer Cutler Pickering Hale and Dorr

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In September 2005, the liberal-leaning watchdog group Citizens for Responsibility and Ethics in Washington singled out Frist as one of the thirteen most "corrupt" members of Congress, and filed a complaint with the Senate Ethics Committee calling for an investigation of the stock sale, an alleged cover-up, and an allegedly mishandled disclosure of a campaign loan.http://www.latimes.com/news/nationworld/nation/la-na-ethics25sep25,1,759138.story?page=2&coll=la-headlines-nation Frist denies any violation of campaign finance laws; others have noted that, because Frist has no formal relationship with HCA, he cannot be an "insider" for purposes of insider-trading prohibitions under the securities laws, and that SEC investigations of sales in advance of important announcements are routine.http://www.washingtonpost.com/wp-dyn/content/article/2005/09/23/AR2005092301811.html?nav=rss_politics

Related Topics:
September - 2005 - Citizens for Responsibility and Ethics in Washington - Senate Ethics Committee

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Observers were quoted as saying that the scandal will substantially injure Frist's presidential ambitions.

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