The U.S. Securities and Exchange Commission told a federal judge his delay in ruling on whether Congressional staffers must obey subpoenas is impeding an insider-trading probe tied to the U.S. House Ways and Means Committee.
In June, U.S. District Judge Paul Gardephe preliminarily granted the SEC’s request directing the committee and top aide Brian Sutter to appear before him to explain why they shouldn’t have to provide documents sought by regulators as part of an insider-trading probe involving health-care stocks. The judge later agreed to put that decision on hold.
The SEC is investigating whether non-public information was illegally passed about a change in health-care policy that resulted in a spike in share prices of insurance companies. The probe concerns some of the largest hedge funds and asset-management advisers in the U.S., the SEC has said.
“As the court is aware, this dispute concerns an ongoing investigation into matters of potential securities law violations which has been impeded while this proceeding has remained pending,” Richard Primoff, a lawyer for the SEC, said in a letter to the judge yesterday.