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Former Frontpoint Trader Chip Skowron Gets His Day In Court

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Reutersreports 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.

Benhamou's information to Skowran didn't make Frontpoint any money, but allegedly helped it avoid losing $30 million by a timely sale of six million shares of drug maker Human Genome Sciences. (It also may have had something to do with investors redeeming en masse shortly thereafter and the shuttering of the fund.)


Preet Bharara: University Of Michigan Doctor Financially Compensated For Leaking Confidential Drug Trial Data To Former SAC Trader Just An Innocent Pawn In Big Bad Hedge Fund's Game

As you may have heard, earlier today, Mathew Martoma, a former portfolio manager in SAC Capital's CR Intrinsic unit, was charged with allegedly running “the most lucrative insider trading scheme ever," netting $276 million for the fund. He did so based on information that was given to him by Sid Gilman, a University of Michigan neurologist and chair of a "safety-monitoring committee that oversaw a clinical trial by Wyeth LLC and Elan Corp.  into whether the drug bapineuzumab, or bapi, was safe for patients with mild-to-moderate Alzheimer’s disease." Over an 18-month period, Gilman and Martoma met 42 times, in addition to emailing and chatting over the phone. For example: