Former FrontPoint Partners hedge fund manager Dr. Joseph “Chip” Skowron might be preparing to plead guilty, a court filing showed on Tuesday. In the court filing, federal prosecutors from the Manhattan U.S. attorney’s office said they intended to file a criminal information against Skowron, rather than seek a grand jury indictment. Defense attorneys say the move by prosecutors to bypass a grand jury and file an information usually indicates a defendant has either agreed to cooperate with the government, or will plead guilty. If Skowron enters a guilty plea, he will be the 47th person charged by prosecutors to either plead guilty or be convicted on charges arising from in the insider trading investigation. [Reuters]
Chip Skowron
If There’s A Better Way To Compensate Your Tipster For Inside Information Than Handing Him Envelopes Filled With Cash, Chip Skowron Hasn’t Heard Of It
By Bess Levin
Earlier this morning, former Frontpoint Partners manager Joseph “Chip” Skowron surrender to authorities and is expected to appear in court today on charges of securities fraud. Skowron has been accused of insider trading, in a scam that involved trading on material non-public information he obtained from a French doctor named Yves Benhamou. In one instance, saved Frontpoint from a $30 million loss based on a tip about the trial of a drug used to treat Hepatitis C, which cause the fund to make a timely sale of six million shares of Human Genome Sciences. For his helpful information, the Chipster met the the doc in various hotel rooms and paid him a bunch of money stuffed in envelopes, which strikes us as better than putting it in garbage bags or canvas sacks with a big $ sign on them and dragging them through the lobby but maybe not the best way to go about it. Continue reading »
Reuters reports that Chip Skowran, the Frontpoint Partners employee who received tips from French doctor Yves Benhamou about Hepatitis C last year, surrendered to authorities this morning and is expected to show up in court today to discuss insider trading charges. Continue reading »
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