Frist lied about not knowing what was in 'blind' trust

Sen. Frist placed his HCA stock (HCA) in blind trust to avoid conflict of interest as a Senator, then told the public in 2002 that he did not know what was in the trust. His June 13, 2005 directive to the trustees to sell all HCA stock just weeks prior to release by HCA of financial reports that caused a sharp drop in HCA stock value shows that he lied in 2002. He knew his HCA stock was still there. The timing of the directive suggests that he was acting on insider information when he directed the sale.

Recently obtained documents verify that he was updated on the contents of the so-called blind trust shortly before stating publicly that he did not know what investments the trust contained.

Associated Press Sat Sep 24,11:33 AM ET

By JONATHAN M. KATZ and LARRY MARGASAK

WASHINGTON - Senate Majority Leader Bill Frist, R-Tenn., was updated several times about his investments in blind trusts during 2002, the last time two weeks before he publicly denied any knowledge of what was in the accounts, documents show.

An earlier report from USA Today Money stated

The company (HCA), 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.

Eliminating conflict of interest was the reason the stocks were in a "blind" trust in the first place. Every time he voted on Medicare or Medicaid reimbursement or procedures he was aware that his vote would effect his personal wealth.

From the Associated Press Sept. 22, 2005 published in the NY Times.

WASHINGTON (AP) -- When Senate Majority Leader Bill Frist asked a trustee to sell all his stock in his family's hospital corporation, a large-scale sell-off by HCA Inc. insiders was under way.

Shares of the Nashville, Tenn.-based hospital company were near a 52-week peak in June when Frist and HCA insiders were selling off their shares -- just about a month before the price dropped.[...]

On June 13, Frist asked his trustees to sell his HCA holdings, as well as those of his wife and children. Letters from his trustees on July 1 and July 8 confirmed the sales, said Frist spokeswoman Amy Call.

Even directing his trustees to make the sale of HCA stock in his "blind" trust based on only public information would mean he lied to the public in 2002 when he said he did not know what was in the blind trust. Adding to the dishonesty the lie represents, he sold when the stock was at its highest price before HCA presented public financial reports that caused the stock price to drop shortly.

After he has demonstrated that level of dishonesty, does anyone really believe that he did not have insider information before directing that the HCA stock be sold just prior to the announcement of poor earnings that caused a drop in the stock price?

Everyone who bought the stock his trust sold was defrauded.