Feds Turn To Healthcare Stocks In Insider Probe

Feb 29 2012 | 4:32am ET

Technology stocks have dominated the insider-trading cases brought in the U.S. over the past two years. But they're set to play second fiddle to a new star industry for illegal tipping.

Trading in and on confidential information about pharmaceutical and biotechnology companies is now "front and center" of the U.S. Justice Department investigation, the Financial Times reports. Authorities are looking into hedge funds trading around major announcements by such companies.

Earlier this week, the Federal Bureau of Investigation said it was investigating about 250 people for insider-trading, about half of whom it hoped to build criminal cases against.

A focus on insider-trading in pharmaceuticals and biotech is not entirely new: Last year, two men pleaded guilty in an insider-trading scam that helped sink FrontPoint Partners, including that hedge fund's former top healthcare manager, Joseph Skowron. Also last year, Massachusetts authorities sued hedge fund Risk Reward Capital Management for trading on confidential information received from expert network consultants.


In Depth

Prominent Hedgie Renee Haugerud Embroiled in Ugly Child Custody Battle

Sep 10 2014 | 2:43pm ET

A high-profile hedge fund manager is caught up in a nasty child custody battle in...

Lifestyle

Full House’s Stamos To Play TV Hedge-Fund Manager

Sep 5 2014 | 4:43am ET

The life of a Connecticut hedge-fund billionaire is coming to the small screen.

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.