Thursday, 31 July 2014
Last updated 7 min ago
Dec 22 2011 | 2:21am ET
The French doctor whose confidential tips helped sink FrontPoint Partners won’t spend another day in jail for his crimes.
Yves Benhamou was sentenced yesterday to time served. The nephrologist pleaded guilty in April to passing tips to Joseph Skowron, the chief healthcare hedge fund manager at FrontPoint. Benhamou was an adviser to Human Genome Sciences, and gave Skowron advanced information about a hepatitis C drug test.
Benhamou, who cooperated with the investigation, spent 24 days in jail after his arrest last November. Skowron was sentenced to five years in prison last month.
Benhamou’s tips helped Skowron’s FrontPoint funds avoid a $30 million loss. FrontPoint shuttered those funds shortly after Benhamou’s arrest, a move which failed to assuage investors. Clients pulled billions from the embattled firm, which announced earlier this year that it would close, spin-off or sell almost all of its hedge funds.
“I can’t find the words to express how sorry I am and to express how much regret I feel,” Benhamou told the court.
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…