BROWSE BY TOPIC
Stories of Interest
- CFTC Chair Giancarlo Appoints Bruce Tuckman as Chief Economist
- Twice-Convicted Ex-Jefferies Trader Litvak Faces Prison After Losing Bail Request
- Wells Fargo Hikes Full-Year S&P 500 Target
- SEC Institutes Administrative Proceedings Against Shkreli
- Goldman's Lloyd Blankfein Seems to be Making a Habit Out of Trolling Trump
- Goldman on Hunt for Star Traders to Revive Struggling Commodities Unit
- Yahoo Owes Millions for Busting NCAA Tourney Bracket Deal
- JPMorgan Joins 21st Century Fox in Fighting 'Deep Divisions Across Our Country'
- Please, God, Save Gary Cohn From Himself: The Case for Resigning
- Regulatory Considerations When Bringing on a New Advisor
- Why Deutsche Bank is at Mercy of Regulators
- U.S. Treasury Auction Class-Action – Federal Judge Causes Interminable Delay
- Mnuchin Rejects Calls to Resign and Defends Trump
- Best Time to Go to the U.S. (Tennis) Open Tourney - Before It Starts on August 28
- Stifel Prevails in Arbitration But Ex-Hilltop Employees Hit with Awards - Bill Singer
- Banca IMI Securities to Pay $35Mn for Improper Handling of ADRs in Continuing SEC Crackdown
- Members of White House ‘Arts Panel’ Resign En Masse in Protest of Trump
- FINRA Whiffs on Disciplinary Sanction: Bill Singer's 'Negligent Market Manipulation in OTC Stock Promotion'
- Heather Heyer’s Mother Says, ‘I’m Not Talking to the President’
- Goldman Sachs May Have Lost $100Mn on Energy Bet Gone Wrong
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
SEC Foils Insider Trading Scheme Involving Confidential Government Info
The SEC announced charges against 4 individuals in an alleged insider trading scheme involving tips of nonpublic information about government plans to cut Medicare reimbursement rates, which affected the stock prices of certain publicly traded medical providers or suppliers. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced related criminal charges.
Named in the SEC complaint were: [see below for more complete profiles]
- David Blaszczak, a former government employee, who now runs Precipio Health Strategies, a consulting firm he founded.
- Christopher Worrall, a health insurance specialist in the government’s Center for Medicare Services (‘CMS’).
- Ted Huber, a Partner on the Private Transactions team at Deerfield, a hedge fund advisory firm.
- Jordan Fogel, a former Partner at Deerfield, who now runs Elinem Management, a firm he founded.
A fifth individual was named in the federal indictment that was unsealed today in a Manhattan courtroom: Rob Olan. a Partner at the Deerfield hedge fund.
ACCORDING TO THE SEC COMPLAINT, … David Blaszczak obtained key confidential details about upcoming decisions by the CMS from his close friend and former colleague at the agency, Christopher Worrall. Worrall tipped Blaszczak about at least 3 pending CMS decisions that affected the amount of money companies would receive from Medicare for services or products related to cancer treatments or kidney dialysis.
Blaszczak, in turn, tipped 2 partners - Theodore Huber and Jordan Fogel - at Deerfield, that paid him as a consultant. Huber and Fogel used that information to recommend that the firm trade in the stocks of 4 health care companies whose stock prices would likely be affected by the decisions once CMS announced them publicly. Those trades netted more than $3.9 million in illicit profits.
For his tips, Blaszczak’s firms were paid at least $193,000 in a 19-month period by the hedge fund where the analysts worked.
Prosecutors said the scheme ran from 2012 to 2014. The SEC, which seeks disgorgement of ill-gotten gains plus interest and penalties, is continuing its investigation.
DAVID BLASZCZAK. According to his LinkedIn profile, Blaszczak is partner of Precipio Health Strategies, which he founded in 2013. Prior to that, he was with: (i) Potomac Research Group, Washing Research Group, and CMS (2000-2005).
CHRISTOPHER WORRAL. A health insurance specialist in the government’s Center for Medicare Services, where the leaks allegedly originated.
TED HUBER. According to his profile on the Deerfield website, Huber is a partner on the Private Transactions team at Deerfield, which he joined in 2005. He provides extensive research and analysis on individual companies operating in the healthcare industry. Prior to joining Deerfield, he was with: (i) Wachovia Securities; and (ii) medical technology company Nellcor.
JORDAN FOGEL. According to his LinkedIn profile, Fogel is a portfolio manager with Elinem, a firm he founded in 2016. Prior to that, he was with: (i) Deerfield (2006-2016); (ii) Credit Suisse; and, (iii) ASCOA.
ROB OLAN. According to his profile on the Deerfield website, Olan is a partner on the Devices team at Deerfield which he joined in 2002, He provides extensive research and analysis on individual companies operating in the healthcare industry. Prior to that, he was with: (i) JPMorgan; and, (ii) Hambrecht & Quist.