Thursday, 29 September 2016
Last updated 27 min ago
Nov 15 2010 | 10:09am ET
The French doctor who allegedly passed confidential tips to a hedge fund manager at FrontPoint Partners appeared in court on Friday.
Yves Benhamou, arrested two weeks ago in Boston, did not speak during the hearing in New York federal court. But he will be back on Wednesday for a detention hearing as his lawyers work to get him out of jail.
“Dr. Benhamou is an exceptional physician and our efforts are now focused on obtaining his release from custody so that he can contribute to his patients’ well-being,” David Zornow, his lawyer, said.
Benhamou was arrested at a nephrology conference and charged with using his position as an adviser to pharmaceutical company Humane Genome Sciences to pass advanced information about a disappointing drug trial to six hedge funds. FrontPoint, which has not been accused of any wrongdoing in the case, acknowledges that it is one of them and has placed Joseph Skowron, its lead healthcare fund manager, on leave pending the conclusion of the investigation.
FrontPoint allegedly escaped $30 million in losses with Benhamou’s information. The firm, which is being spun off from Morgan Stanley, has seen clients file redemptions for about half of its healthcare funds’ $750 million since Benhamou’s arrest.