SEC Subpoenas D.C. Tipsters Regarding Medicare Advantage Rule Leak

The Securities and Exchange Commission has subpoenaed the Washington, D.C.-based investment analysis firm and lobbyist connected with an April 1 information leak of a CMS ruling to raise Medicare Advantage rates, according to a report by the Washington Post.

An analyst from Height Securities and healthcare lobbyist Mark Hayes of K-Street law firm Greenberg Traurig were subpoenaed in a government probe into the so-called "political intelligence" industry in which investment companies pay for insider policy updates to share with investors. Legislators including Sen. Chuck Grassley (R-Iowa) have called the practice into question.

Mr. Hayes voluntarily submitted to four hours of questioning with the SEC and the FBI, according to the report. He was an outside lobbyist for health insurer Humana, which gained the most in a post-leak stock rally. Before Humana, Height and Greenberg severed business ties with one another as public scrutiny heightened.

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