Frist's brother is a high ranking corporate officer of the company involved. I find it hard to believe that the brother did not speak with Senator Frist sometime between March and July, 2005. Frist said yesterday that he first asked for advice about selling his stock in April. His stock was sold in July. In early July, he asked the trustee of his 'blind trust' to sell his holdings.
The brother must have known the stock would take a major hit. According to PBS last night, Frist sold his stock just before the stock fell substantially. A nearly identical scenario to the transaction that caused Martha Stewart so many problems. And we all know what happened to Martha. An inside trading tip, IF it occurred in regard to Frist, appears not to have come from a stock broker or an employee of the broker.
I go months without talking to my brother, and when we do we rarely discuss his work or my work.
So I don't find it hard at all to believe his brother didn't call him up and warn him about his stock.
Plus, most people are NOT criminals. Every corporate officer is well-represented by lawyers who tell them what they can do. It doesn't make sense that such people would violate the law to get stock sold by a public official who certainly knows that every tiny little thing will be looked over with a microscope.
My employer requires me to take tests each year covering ethics issues like insider trading. And I'm a nobody -- every employee goes through the same training.
I have no direct evidence one way or another, but I find it quite believable that the drop in stock price something that Frist had no idea about.
Now, whether Frist selling his stock could have been a catalyst to cause a selloff, I don't know. But that wouldn't be a crime.