Sunday, 28 August 2016
Last updated 1 day ago
Aug 15 2011 | 2:47pm ET
As expected, former FrontPoint Partners healthcare hedge fund manager Joseph Skowron pleaded guilty today to insider-trading charges.
Skowron appeared before a federal judge in Manhattan to enter his plea on conspiracy and obstruction of justice. He faces up to five years in prison and agreed to pay a $5 million fine.
"I knew my actions were wrong and I deeply regret participating in these activities," Skowron said.
Earlier this month, Skowron had waived his right to be indicted, signaling that he would likely plead guilty. Last week, he settled the Securities and Exchange Commission's lawsuit against him.
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.