A former manager at the hedge fund FrontPoint Partners LLC has been charged with insider trading, becoming the most prominent investor embroiled in a crackdown on illegal stock tips solicited from so-called expert network industry consultants.
Chip Skowron, a doctor who ran healthcare-oriented hedge funds, was expected to appear later Wednesday in federal court on criminal securities fraud and conspiracy charges, a person familiar with the matter said. The FBI said he had surrendered to federal authorities in Manhattan.
The case comes as the insider trading trial of Galleon Group hedge fund manager Raj Rajaratnam nears its conclusion, also in Manhattan federal court. Skowron's case stems from November's arrest of French doctor Yves Benhamou, the person familiar with the case said. Benhamou, an expert in infectious disease who worked as a consultant for drug maker Human Genome Sciences Inc, has admitted to illegally providing tips to Skowron, according to court papers unsealed on Wednesday.
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