House committee ordered to hearing as SEC probes insider trading

NEW YORK, June 20 Fri Jun 20, 2014 5:47pm EDT

Related Topics

NEW YORK, June 20 (Reuters) - A Manhattan federal judge directed the House Ways and Means Committee and a senior staffer to appear at a July 1 hearing to address their alleged refusal to respond to U.S. Securities and Exchange Commission subpoenas into whether a leak about a healthcare policy change may have led to insider trading.

U.S. District Judge Paul Gardephe's order on Friday covers both the committee and Brian Sutter, staff director for its healthcare subcommittee.

The SEC said it is examining whether material nonpublic information concerning an April 1, 2013 announcement by the Centers for Medicare and Medicaid Services of 2014 reimbursement rates for a Medicare program was leaked improperly, and whether anyone traded on that information.

A lawyer for the committee was not immediately available for comment. Sutter's lawyer declined to comment. (Reporting by Nate Raymond and Jonathan Stempel in New York, and Sarah N. Lynch and Emily Stephenson in Washington, D.C.; Editing by Chris Reese)

FILED UNDER: