Don’t you just hate it when a more minor securities-law violation leads to the unearthing of very big (alleged) securities-law violations and the rapid unraveling of your once-$8 billion hedge fund? Really, it's the worst. Jacob Gottlieb knows what we’re talking about.
As FBI agents unraveled the mismarking scheme, they won the cooperation of witnesses who detailed other frauds to use government contacts to get inside information, according to a person familiar with the matter. In addition to the FDA information, they uncovered a plot in which Plaford traded on illegal tips from a former Centers for Medicare and Medicaid Services official who’d become a political consultant.