Friday, 25 July 2014
Last updated 3 hours ago
Sep 19 2011 | 4:40am ET
A Columbia University medical professor is alleged to have passed confidential information about a drug trial to a Cambridge, Mass., hedge fund.
Andrew Bomback is the tipster identified as “Doctor 1” in Massachusetts’ civil lawsuit against Risk Reward Capital and its founder, James Silverman, The New York Times reports. The Gray Lady was able to determine Bomback’s identity by comparing the lawsuit and a press release from one of the companies that Silverman is accused of trading illegally, Questcor Pharmaceuticals.
“I’m actually surprised you were able to identify me,” Bomback, who is a consultant for Questcor, told the Times. But he admitted that he is “Doctor 1.”
Bomback is not accused of any wrongdoing by Massachusetts regulators, and denies breaking the law, as does Silverman.
“Mr. Silverman has never received any material, non-public information from me,” he told the Times.
Massachusetts begs to differ: It say that Risk Reward’s performance turned around once it began working with expert-network Guidepoint Global. Guidepoint put Silverman in touch with Bomback, who probably knew more about Questcor’s only drug than any other person, having reviewed all 21 of the patient files from the test—eight of the patients were his own.
Bomback said he only spoke with Silverman about his patients. But Silverman’s notes, turned over to the authorities as part of the investigation, show that the two actually discussed all 21 cases.
The case has led Massachusetts to impose new rules covering expert networks.
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…