Prosecutors Won’t Let Separation Of Powers Keep Them From Looking Into Alleged Capitol Hill Insider-Trading Ring

It may not be possible to prove that Congressional aides were doing some insider-trading. It may not even be possible to prosecute them. But it doesn’t hurt to ask, right?

The SEC sent subpoenas to the House committee and Mr. Sutter seeking documents and testimony in the matter, according to documents made public by Rep. David Camp (R., Mich.), who is the committee chairman, and Mr. Sutter.

Separately, the Justice Department issued a subpoena to Mr. Sutter to compel him to testify before a federal grand jury at the U.S. District Court for the Southern District of New York, according to Mr. Sutter’s public disclosure, which was included in the congressional record per House rules. Committee officials wouldn’t say whether Mr. Sutter has testified. A spokesman for the Ways and Means Committee, speaking for Mr. Sutter, declined to comment….

It is highly unusual for the Justice Department to issue subpoenas to members of Congress or their aides, given sensitivities and legal barriers connected with the separation of powers between the executive and legislative branches of government. These subpoenas are the first formal requests for information to Congress involving a federal insider-trading investigation in nearly a decade.

House Panel Is Subpoenaed as Trading Probe Heats Up [WSJ]