New York (HedgeCo.net) – The SEC has agreed to settle a lawsuit with former FrontPoint Partners LLC hedge fund manager Joseph F. “Chip” Skowron, Bloomberg reported this morning.
“Skowron surrendered in April to Federal Bureau of Investigation agents in New York to face charges of conspiracy, securities fraud and obstruction. Prosecutors accused him of obtaining information from an insider about hepatitis C drug trials enabled Greenwich, Connecticut-based FrontPoint to avoid more than $30 million in losses.
“The settlement would “fully resolve the SEC’s claims against defendant,” lawyers for the SEC and Skowron said in a court filing dated today.”
The SEC had alleged that Skowron, a former portfolio manager for six health care-related hedge funds affiliated with FrontPoint Partners LLC, sold hedge fund holdings of Human Genome Sciences Inc. (HGSI) based on a tip he received unlawfully from a medical researcher overseeing the drug trial.
HGSI’s stock fell 44 percent after it publicly announced negative results from the trial of Albumin Interferon Alfa 2-a (Albuferon), and the hedge funds avoided at least $30 million in losses.
Alex Akesson
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