Sunday, 23 October 2016
Last updated 1 day ago
Aug 11 2011 | 1:27pm ET
FrontPoint Partners' former top healthcare fund manager appears prepared to forego both of his days in court.
Joseph Skowron, who last week laid the groundwork for a guilty plea on insider-trading charges, has struck a deal with the Securities and Exchange Commission to settle its civil charges against him.
In a court filing today, Skowron's lawyers and the SEC said that have reached a settlement in principle to "fully resolve the SEC's claims against the defendant." The terms of that settlement are still unclear.
Skowron was arrested in April, accused of using tips from a French doctor to help FrontPoint avoid a $30 million loss. FrontPoint shut down Skowron's healthcare funds shortly after that doctor, Yves Benhamou, was charged last year. But the action failed to assuage investors, who continued to pull billions from the embattled firm, which announced earlier this year that it would close all be four of its hedge funds. Among the casualties was its flagship multi-strategy fund.
Skowron last week agreed to waive his right to be indicted. Such a move is generally followed by a plea agreement with prosecutors.