Sunday, 26 June 2016
Last updated 2 days ago
Jul 17 2013 | 9:33am ET
Former FrontPoint Partners hedge fund manager and convicted insider trader Joseph Skowron must pay his former employer Morgan Stanley $10.2 million in restitution.
A U.S. appeals court on Tuesday denied Skowron's request to overturn a ruling requiring him to pay Morgan Stanley 20% of his compensation between 2007 and 2010, plus legal fees and related costs.
Skowron's lawyer had argued that his client's compensation was due to an employment agreement and not the proceeds of his fraud, but the court didn't buy it.
"If not for Skowron's deceit, Morgan Stanley would have learned of his criminal conduct, terminated his employment, and discontinued his compensation," the three-judge panel wrote in denying the former hedge fund exec's appeal.
Skowron is serving a five-year prison sentence for conspiracy to commit securities fraud and obstruct a Securities and Exchange Commission investigation.