Ex-FrontPoint Manager Skowron To Settle With SEC

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.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note