Frist stock market losses more than originally stated

Investment losses on paper from the Frist 2000 committee could total $461,000, the senator’s office said Thursday. That’s about $160,000 more than the $301,753 reported in the Frist committee’s first-quarter filing for 2004.

“There was an unfortunate typographical error made during the filing of this last quarterly report,” Frist spokesman Nick Smith said. “Steps are being taken to correct it and fully examine this recent report, and an amended Federal Election Commission report will be filed as soon as possible.”

Smith said the error came when officials preparing the report typed “1/07/00” instead of “11/07/00.” That added 10 additional months of revenues that should not have been included in the report.

The filing covers campaign contributions for the post-election 2000 period through March 31, 2004. The money was invested through a stock mutual fund account with the Charles Schwab & Co. investment firm.

Although Frist’s office acknowledges a total loss of $461,000, an analysis by the Chattanooga Times Free Press of his original FEC filing for the first quarter of 2004 shows the senator lost $531,752. The new filing, which has not been submitted to the FEC, was not available for review.

Frist aides have not divulged how much money was invested but said it involved a mutual fund. Mutual funds allow investors to pool their cash. Management decisions are turned over to an investment professional who typically buys stocks.

Campaigns can legally invest contributions in stocks and bonds, according to Ian Stirton, a FEC spokesman. Stirton said the FEC does not maintain figures on how many lawmakers invest campaign funds.

A Times Free Press review of several other lawmakers’ disclosures show some, including U.S. Sen. Arlen Specter, R-Pa., have invested campaign funds.

Also, U.S. Senate Minority Leader Tom Daschle, D-S.D., has an account with Merrill Lynch & Co., according to his FEC reports. Daschle reported investment income of $144,474 as of Dec. 31, 2001, in a category for dividends and interest. In 2002, he reported a $65,731 loss, attributing it in his report to a “loss on sale of stock.”

Daschle has had mixed results since then, reports show. His overall investment earnings for the category of dividends and interest remains at $90,929, according to his first quarter 2004 report.

Brad Woodhouse of the Democratic Senatorial Campaign Committee, who raised questions about Frist’s investments last week, said, “I think it’s just kind of another day in the saga of these discrepancies, and I think it should raise a lot of questions in voters’ minds about why this has been such a difficult thing for them to get their hands around and explain.”

Frist’s second term ends in 2006. He has said he will not seek re-election, but his name is mentioned as a possible 2008 GOP presidential candidate.

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Information from: Chattanooga Times Free Press, http://www.timesfreepress.com