Morgan Stanley sues Ex-FrontPoint manager over insider charges

According to a Reuters report Morgan Stanley is suing a former employee who was convicted of insider trading in order to recover $33 million it said it paid U.S. regulators to settle civil claims relating to the crimes, court papers showed.

In a complaint filed in Manhattan federal court on Oct. 31, Morgan Stanley sued ex-FrontPoint Partners hedge fund manager Joseph "Chip" Skowron over the funds the bank paid to the U.S. Securities and Exchange Commission. The lawsuit also called for unspecified compensatory and punitive damages.

Doctor-turned-stock picker Skowron pleaded guilty in August to trading stock of Human Genome Sciences Inc in 2008 based on non-public information he admitted to having received from a consultant for the biotech company, who also pleaded guilty to insider trading charges. Skowron was sentenced to five years in prison and ordered to forfeit $5 million…….

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