Monday, 26 January 2015
Last updated 1 hour 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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…