The government’s strong crackdown on insider trading during the last two years might be resulting in the 47th guilty plea soon.
Remember Dr. Joseph “Chip” Skowron III, the former FrontPoint Partners hedge fund manager and doctor involved in the massive insider trading scandal?
Well, Skowron might be pleading guilty soon to insider trading, according to an analysis of a court filing reported in Reuters.
“In the court filing, federal prosecutors from the Manhattan U.S. attorney’s office said they intended to file a criminal information against Skowron, rather than seek a grand jury indictment.”
“defence attorneys say the move by prosecutors to bypass a grand jury and file an information usually indicates a defendant has either agreed to cooperate with the government, or will plead guilty.”
Skowron was charged in April with trading illegally based on nonpublic information received from Yves Benhamou, a man who worked for a drug company, Human Genome Sciences.
Benhamou has already pleaded guilty.
A guilty plea by Skowron would be really interesting. FrontPoint only recently spun off from Morgan Stanley. He allegedly insider traded while Morgan Stanley owned a large stake.
Read the full Reuters report here >>