WASHINGTON — Rep. Jay Inslee, D-Bainbridge Island, yesterday asked the House Energy and Commerce Committee to hold hearings on allegations that doctors are selling confidential information from drug studies to Wall Street firms.

Inslee, a member of the committee's panel on oversight and investigations, said he was prompted by The Seattle Times stories Sunday that reported drug researchers routinely were paid to share information with hedge funds and brokerage firms.

"We in the Northwest have a great stake in the integrity of the biomedical-research process," he said in an interview. "Anything that degrades that impacts our ability to do great medical research.

"Moreover, people have to have confidence if they invest in biotechnology," he said, noting the many biotech companies in the area and the medical-research facilities at the University of Washington.

Citing The Times articles, Inslee wrote a letter yesterday to committee Chairman Joe Barton, R-Texas, and ranking minority member John Dingell of Michigan. He said reports of potential malfeasance demonstrate a strong need for congressional oversight.

"This alleged practice violates the ethical and legal walls that needs to exist between doctors with insider knowledge about clinical drug trials and Wall Street," his letter said. "We have a responsibility to protect the integrity of medical and scientific research."

The Seattle Times investigation found at least 26 cases in which doctors leaked confidential and critical details of their ongoing drug research to Wall Street firms.

That report prompted Sen. Charles Grassley, R-Iowa, chairman of the Senate Finance Committee, on Monday to call for an investigation by the Justice Department and by the Securities and Exchange Commission.

The SEC is now looking into the matter, SEC officials told The Times on Tuesday.

The practice involves doctors at top research universities from UCLA to the University of Pennsylvania, and powerful financial firms including Citigroup Smith Barney, UBS and Wachovia Securities, The Times reported.

In 24 of the 26 cases, the firms issued reports to select clients with detailed information obtained from doctors involved in confidential studies. The reports advised clients whether to buy or sell a drug stock.

Trading stock based on secret information bought from medical researchers is illegal, say legal experts, including a former enforcement official at the SEC.

In a letter Monday, Grassley said: "Selling drug secrets violates a trust that is fundamental to the integrity of both scientific research and our financial markets."

Grassley said in a TV appearance later that the issue was something that "probably the Securities and Exchange Commission and the attorney general should have been on top of, but aren't."

Inslee said in his letter to the subcommittee that "a thorough investigation will help us to better understand the effectiveness of current law, the capabilities of our regulatory agencies to monitor and prevent some of those practices, and whether or not Congress needs to amend current law to protect against further potential abuse. The potential violations of the law and scientific ethics challenge the fundamental integrity of how scientific research is performed and how we protect our financial markets from manipulation."

It is uncertain how quickly the House Commerce Committee will move on Inslee's request. He is a junior member of the committee, and a member of the Democratic minority.

Inslee, however, said he is optimistic.

"There should be bipartisanship on this matter. There should be no reason not to do this hearing," he said. "And I'm going to push for it."

Alicia Mundy: 202-662-7457 or amundy@seattletimes.com