Galleon Group LLC, the defunct hedge fund at the center of the biggest insider trading scheme in U.S. history, is seeking restitution as a victim of the crimes committed by Joseph F. “Chip” Skowron, the ex-FrontPoint Partners LLC fund manager to be sentenced today.
Galleon says it lost more than $1.5 million and Deutsche Bank, Germany’s biggest lender, claims losses of $2.4 million as a direct result of Skowron’s inside trades on Human Genome Sciences Inc. in January 2008. Skowron, 42, a Yale University- educated physician from Greenwich, Connecticut, pleaded guilty in August to conspiring to commit securities fraud and obstruction of a federal investigation. He is scheduled to be sentenced by U.S. District Judge Denise Cote in Manhattan.
“The funds and/or accounts that Galleon managed may be entitled to restitution in connection with losses they sustained in their trading of HGSI,” George Lau, the former Galleon chief financial officer, said in a Nov. 2 letter to Manhattan U.S. Attorney Preet Bharara.
Skowron admitted that he got a tip from a former adviser for HGSI that trials of a hepatitis C drug were being ended, which prosecutors say allowed FrontPoint to sell its stock in the company before the information became public and avoid $30 million in losses….
Find out more at http://www.bloomberg.com/news/2011-11-18/galleon-says-it-was-victim-of-skowron-inside-trades-as-he-faces-sentencing.html
No comments:
Post a Comment