The Securities and Exchange Commission has sued the House Ways and Means Committee to enforce subpoenas for documents and testimony concerning insider trading in insurance companies that occurred in 2013, according to a report in The New York Times.
The trading is alleged to have occurred after Brian Sutter, staff director of the
In May, the SEC issued subpoenas for documents and testimony to Mr. Sutter and the committee. The SEC is seeking testimony from Mr. Sutter concerning his conversations with lobbyists at the law firm of Greenberg Traurig. It is alleged lobbyists from the law firm emailed a brokerage firm with information from "credible sources" confirming the Medicare reimbursement rate change, according to the report.
Mr. Sutter and the committee have stated a number of reasons for refusing to comply with the subpoenas and cited the Constitution's speech or debate clause, which protects against any outside inquiry into "legislative acts" in Congress.
The courts will rule on the matter to decide if the documents or Mr. Sutter's testimony must be produced.
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