In what is viewed as an ongoing power struggle between two branches of the federal government, the House lawyers termed the investigation related to Medicare insider-trading allegations to be a "fishing expedition."
The Wall Street Journal: House Attorneys Seek Dismissal Of SEC Suit
Lawyers for the U.S. House of Representatives asked a federal judge to reject a lawsuit the Securities and Exchange Commission filed against Congress in June, saying the suit amounts to "a remarkable fishing expedition for congressional records." The move late Friday is the latest in a power struggle between two branches of government in a possible insider-trading case (Ackerman, 7/4).
Reuters: House Panel Opposes Giving SEC Documents For Medicare Insider Trading Probe
A U.S. House of Representatives panel said on Friday it should not have to comply with a federal regulator's demand for documents sought for an insider-trading probe involving the staff director of a subcommittee and a lobbyist. The House Ways and Means Committee argued in a court filing that U.S. District Judge Paul Gardephe in New York should deny the Securities and Exchange Commission's attempt to subpoena documents from the committee and its healthcare subcommittee staff director Brian Sutter. The SEC went to court June 20 to enforce subpoenas it issued as it sought information related to a probe into whether Sutter leaked material nonpublic information about Medicare reimbursement rates to Mark Hayes, a lobbyist at Greenberg Traurig LLP (7/4).