Chairman Grassley asks the SEC and the Department of Justice to investigate report that medical researchers accept money to provide information about ongoing drug studies to Wall Street brokerages or hedge funds

August 8, 2005

Via Facsimile
Original via USPS Mail

The Honorable Alberto R. Gonzales 
Attorney General
Department of Justice 
950 Pennsylvania Avenue, NW 
Washington, DC 20530-0001

The Honorable Christopher Cox
Chairman
U.S. Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549

Dear Attorney General Gonzales and Chairman Cox:

Please find linked a special report published in the Seattle Times this pastweekend, entitled “Selling Drug Secrets.”1 The serious nature of the reported findingsand allegations, coupled with the grave implications if these allegations are meritorious,compel me, as Chairman of the Committee on Finance (Committee), to refer thesematters to the Department of Justice and to the Securities Exchange Commission forconsideration. Selling drug secrets violates a trust that is fundamental to the integrity ofboth scientific research and our financial markets.

As Chairman of the Committee, I request that your agencies conduct a completeand thorough review of these findings and allegations and please keep the Committeeapprised of your progress. In addition, please advise whether or not Congress needs toconsider strengthening any laws in light of these reports. Finally, at the earliestopportunity, I would appreciate receiving a briefing from your respective agencies.

Thank you in advance for having your staff coordinate with my staff about thesematters no later than close of business on August 15, 2004. Any questions or concernsshould be directed to Emilia DiSanto at (202) 224-4515. All formal correspondenceshould be sent electronically in PDF searchable format to thomas_novelli@financerep.senate.gov or via facsimile to (202) 228-2131. All original material should be sentvia USPS mail.

Sincerely,

Charles E. Grassley
Chairman

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