Consultant, HHS Employee and Hedge Fund Workers Charged In Insider Trading Scheme
Prosecutors say the government worker passed along information about funding plans for cancer treatments and kidney dialysis to the consultant, who shared it with the hedge fund.
The Associated Press:
Consultant Charged In Scheme To Trade US Secrets For Profit
A Washington consultant, three hedge fund workers and a government employee were blamed Wednesday by federal prosecutors for an insider trading scheme that converted government secrets into hedge fund profits. ... Acting U.S. Attorney Joon H. Kim said the defendants used "highly sensitive and confidential information" from the Centers for Medicare & Medicaid Services, part of the U.S. Department of Health and Human Services, to enable three hedge fund workers to make over $3.5 million illegally for their company from 2012 through 2014. The Securities and Exchange Commission said the profits reached $3.9 million. (Neumeister, 5/24)
The Wall Street Journal:
U.S. Charges Four With Trading Insider Tips On Health-Care Policy
The tips concerned information about government-funding levels for cancer treatments and kidney dialysis from 2012 to 2014, according to prosecutors. Christopher Worrall, a senior technical adviser to the Centers for Medicare and Medicaid Services, allegedly passed information about the funding to a consultant in the political-intelligence business, David Blaszczak, who in turn told the traders. (Mullins and Pulliam, 5/24)
Reuters:
Five Charged With Insider Trading Involving U.S. Health Agency
Prosecutors said that from 2012 to 2014, [hedge fund employees Rob] Olan, [Ted] Huber and [Jordan] Fogel schemed to get confidential information about CMS's internal decision-making from Blaszczak, who previously worked there. Blaszczak in turn got the information from his former colleague and "close friend" Worrall, prosecutors said. (Pierson, 5/24)
