Doctor Accused of Hedge Fund Insider Trading
The Associated Press reports that an Ivy League-trained physician who became a health care hedge fund portfolio manager surrendered to face charges he evaded $30 million in losses for his funds by paying a prominent French doctor for secrets on the progress of a liver disease drug. Joseph "Chip" Skowron III, of Greenwich, Conn., was charged with conspiracy to commit securities fraud, securities fraud and conspiracy to obstruct justice in a criminal complaint unsealed Wednesday in U.S. District Court in Manhattan. He formerly worked at FrontPoint Partners LLC, where he oversaw six health care-related hedge funds. He was freed on $6 million bail, roughly the value of the Greenwich, Conn., residence that he provided as collateral. Skowron is the 47th person arrested in the last 18 months on insider trading charges. The probe, which began when the Securities and Exchange Commission spotted trading irregularities in the stock of a liver disease drug maker, was a continuation of the FBI''s "Perfect Hedge" probe, Skowron''s arrest came two days after the French doctor, Yves Benhamou, pleaded guilty to conspiracy to commit securities fraud, two counts of securities fraud, conspiracy to obstruct justice and making false statements. Initially charged in November, he entered into a cooperation agreement with prosecutors.