Are Federal Employees Now Involved in a Massive Insider Trading Scandal?

Federal employees were given advance notice of an April 1 Medicare decision worth billions of dollars to private insurers. And in the weeks before the decision was officially announced, shares in those firms spiked, the Washington Post reports.

Naturally, the Justice Department and the Securities and Exchange Commission suspect Wall Street investors and fed workers engaged in insider trading.

The April 1 decision was about increasing funding to Medicare Advantage by $8 billion

Sen. Chuck Grassley (R-Iowa) said last week that his office “reviewed the e-mail records of employees at the Department of Health and Human Services and found that 436 of them had early access to the Medicare decision as much as two weeks before it was made public,” the report notes.

“The number of federal employees with advance knowledge is surely higher; the figures Grassley’s staff compiled did not include people at the White House’s Office of Management and Budget who also saw the information,” the report adds.

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