SEC, Justice Investigate Frist's Sale of Stock

Democrats were quick to pounce on Frist's problem. Democratic National Committee Chairman Howard Dean urged the agencies involved to "fully and vigorously investigate Frist's suspicious stock trade." He added: "Republicans in Washington have made their culture of corruption the norm."

"Bill Frist has this all upside down," said Rep. Rahm Emanuel (D-Ill.), chairman of the House Democrats' campaign committee. "He thought Terri Schiavo could see and his trust was blind."

Watchdog groups also lashed the lawmaker. Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington, said she intends to petition the Senate Select Committee on Ethics to look into Frist's actions and determine whether he ran afoul of ethics rules involving blind trusts. A spokesman for the committee said the panel does not disclose whether it is investigating a senator.

In addition, the Foundation for Taxpayer and Consumer Rights urged congressional leaders to appoint an independent observer "to ensure a thorough, transparent investigation."

Analysts said that Frist's White House hopes might be harmed by the probe and that Republicans in general might be penalized politically. Because few voters know Frist well, learning about him through an investigation "would not be a good way to be introduced to the American public," said Stuart Rothenberg of the nonpartisan Rothenberg Political Report.

In addition, Rothenberg said the Republicans that Frist leads could also be tarnished. The probe "adds to the general Democratic ammunition," Rothenberg said.

"I do think this hurts his future ambitions, even if he's exonerated," agreed Jennifer E. Duffy of the Cook Political Report.

Congressional critics questioned the reason Frist gave for selling the stock. Senate rules allow lawmakers to divest all of their shares in a company from a blind trust, but only if they assume new duties and find that their ownership presents the appearance of a conflict of interest.

Frist has held HCA shares in a blind trust since he came to the Senate in 1995. He was promoted to majority leader in 2002. Frist regularly deflected concerns about owning the shares while leading health care debates by saying he kept them in a blind trust.

"I don't know what new duties he would point to above and beyond becoming majority leader, and that was three years ago," said Fred Wertheimer, president of Democracy 21, an ethics advocate.

Call, Frist's spokeswoman, said the stock sale was motivated solely by the senator's desire to avoid an appearance of conflict, but she could not cite any published criticism of his HCA holdings after April 2004.