SEC Sues After House Resists Insider Trading Probe

The Securities and Exchange Commission has sued a House committee and its staff director in federal court to enforce subpoenas for documents and testimony about possible tipping of confidential government information about a planned change in Medicare reimbursement rates that reached investors and sent health insurance stocks soaring. 

The Wall Street Journal: U.S. House Sought Immunity For Aide
Lawyers for the U.S. House sought a deal with the Securities and Exchange Commission to shield from prosecution a congressional aide who has become a key figure in an insider-trading investigation. The SEC rejected the offer and instead went to court Friday to force the House to turn over documents and evidence in the matter (Mullins and Ackerman, 6/23).

The New York Times’ DealBook: House Resists S.E.C.’s Insider Trading Inquiry
Members of Congress certainly like to talk the talk, but when it comes to insider trading there seems to be little interest in walking the walk by cooperating with an investigation into a possible leak of confidential information that allowed for lucrative trading (Henning, 6/23).

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