Manhattan U.S. Attorney Charges Former Hedge Fund Portfolio Manager for Insider Trading Scheme Involving Clinical Drug Trial
PREET BHARARA, the United States Attorney for the Southern District of New York, and JANICE K. FEDARCYK, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of charges against JOSEPH F. SKOWRON III, a/k/a “Chip Skowron,” a former portfolio manager of a health care unit of a hedge fund group (the “Hedge Fund”) for engaging in an insider trading scheme. SKOWRON allegedly used material, non-public information (“Inside Information”) that he received from YVES BENHAMOU, a doctor who served as an advisor to Human Genome Sciences, Inc. (“HGSI”) on a clinical drug trial, to avoid approximately $30 million in trading losses. SKOWRON also was charged with conspiracy to obstruct justice for urging BENHAMOU to lie during an investigation into his trading. SKOWRON surrendered to authorities earlier this morning and is expected to be presented in Magistrate Court this afternoon. BENHAMOU, who was previously charged a...