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

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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.




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