Alleged FrontPoint Tipster Makes Court Appearance

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.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note