Bloomberg reports that ex-FrontPoint hedge fund manager Joseph F. “Chip” Skowron pleaded guilty in a U.S. insider-trading case.Skowron pleaded guilty to one count of conspiracy before U.S. District Judge Denise Cote in Manhattan today. Conspiracy carries a maximum prison term of five years.
The government claimed that Skowron obtained nonpublic information from Yves Benhamou, an expert in hepatitis drugs and a former adviser for Human Genome Sciences Inc. The tips, concerning hepatitis C drug trials, let Greenwich, Connecticut- based FrontPoint avoid more than $30 million in losses, the U.S. said. Benhamou has pleaded guilty.
FrontPoint oversaw $7 billion at the start of November before Skowron, a co-portfolio manager of its health-care funds, was tied to claims that the firm got advance notice on the drug- trial results. FrontPoint’s assets slipped to $4.5 billion by January and the firm closed its health-care funds….
Find out more at http://www.businessweek.com/news/2011-08-15/ex-frontpoint-manager-skowron-pleads-guilty-in-insider-case.html
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