Letters Show Frist Notified Of Stocks in 'Blind' Trusts

Letters Show Frist Notified Of Stocks in 'Blind' Trusts: "October 24, 2005; Page A01

Senate Majority Leader Bill Frist (R-Tenn.) was given considerable information about his stake in his family's hospital company, according to records that are at odds with his past statements that he did not know what was in his stock holdings.

Managers of the trusts that Frist once described as 'totally blind,' regularly informed him when they added new shares of HCA Inc. or other assets to his holdings, according to the documents.

Since 2001, the trustees have written to Frist and the Senate 15 times detailing the sale of assets from or the contribution of assets to trusts of Frist and his family."

The extent of Frist's knowledge of the inner workings of his trusts and his family's health care company is related to a recently launched federal investigation of possible insider trading involving the liquidation this summer of Frist's HCA stock. Within weeks of Frist's decision to sell his holdings in June, HCA shares fell sharply because of a weak earnings report. Frist has said he possessed only publicly available and not "insider" information about the company when he directed the sale and, therefore, did nothing wrong.