July 18 (Bloomberg) — An insider-trading probe involving the House Ways and Means Committee and a top staff member also includes dozens of hedge funds, investment advisers and other firms, the U.S. Securities and Exchange Commission said in a court filing.
In arguing against the House's motion to dismiss the case or send it to a court in Washington, the SEC told a Manhattan federal judge July 16 that the geographic scope of its investigation is "much wider" than described by lawyers for the House and involves a total of 44 entities.
The probe concerns some of the largest hedge funds and asset-management advisers, the SEC said. Twenty-five of the 44 are based in New York, it said.
The agency subpoenaed the House committee and the staff member, Brian Sutter, for its inquiry into 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 case is testing whether U.S. insider-trading laws allow regulators to investigate the committee or its staff.
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