EIC/Wall Street investigations
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Apr 13, 2011

U.S.: Doctor-turned-trader paid cash for stock tips

NEW YORK/BOSTON (Reuters) – An Ivy League-trained doctor-turned-stock-picker has been charged with insider trading, accused of showering a French physician with cash and a luxury trip to New York in exchange for secret details on a biotechnology company.

Joseph “Chip” Skowron, who ran hedge fund firm FrontPoint Partners’ healthcare funds, was expected to appear later Wednesday in federal court on criminal securities fraud and conspiracy charges. The FBI said he surrendered Wednesday morning in Manhattan.

Apr 13, 2011

Doctor-turned-trader paid cash for stock tips

NEW YORK/BOSTON (Reuters) – A former manager at hedge fund FrontPoint Partners LLC has been charged with insider trading, accused of showering a French doctor with cash and a luxury trip to New York in exchange for secret details on a biotechnology company.

Joseph “Chip” Skowron, who ran FrontPoint’s healthcare funds, was expected to appear later Wednesday in federal court on criminal securities fraud and conspiracy charges. The FBI said he surrendered Wednesday morning in Manhattan.

Apr 13, 2011

Doctor-turned-trader paid cash for stock tips – U.S.

NEW YORK/BOSTON (Reuters) – A former manager at hedge fund FrontPoint Partners LLC has been charged with insider trading, accused of showering a French doctor with cash and a luxury trip to New York in exchange for secret details on a biotechnology company.

Joseph “Chip” Skowron, who ran FrontPoint’s healthcare funds, was expected to appear later Wednesday in federal court on criminal securities fraud and conspiracy charges. The FBI said he surrendered Wednesday morning in Manhattan.

Apr 13, 2011

Ex-FrontPoint exec charged in insider case

NEW YORK/BOSTON (Reuters) – A former manager at the hedge fund FrontPoint Partners LLC has been charged with insider trading, becoming the most prominent investor embroiled in a crackdown on illegal stock tips solicited from so-called expert network industry consultants.

Chip Skowron, a doctor who ran healthcare-oriented hedge funds, was expected to appear later Wednesday in federal court on criminal securities fraud and conspiracy charges, a person familiar with the matter said. The FBI said he had surrendered to federal authorities in Manhattan.

Apr 11, 2011

Einhorn’s shorts dragged down fund’s returns in Q1

BOSTON/NEW YORK, April 11 (Reuters) – Hedge fund manager
David Einhorn is coming up short this year largely because some
of the bets he made on stocks falling haven’t panned out.

In the first quarter, Einhorn’s Greenlight Capital
Qualified LP dipped 2.9 percent, compared to an average 2
percent gain for the hedge fund industry.

Apr 11, 2011

Falcone-backed telecom tests IPO waters

NEW YORK/BOSTON (Reuters) – Billionaire hedge fund investor Philip Falcone may have found a way out of his risky wireless telecom bet through a possible initial public offering, three sources said.

LightSquared, the upstart telecom backed by Falcone’s hedge fund, could file for an IPO as early as this summer, said one person familiar with the matter. It has been meeting with Wall Street telecom analysts and institutional investors to discuss its business plan.

Apr 8, 2011

Coffee buzz lets Thaler’s fund reach top in 1st qtr

BOSTON/NEW YORK, April 8 (Reuters) – The daily cup of coffee
has worked wonders for hedge fund manager John Thaler’s returns
this year.

Thaler, who runs the roughly $1 billion JAT Capital
Management, pulled off a dramatic coup when his New York-based
firm outperformed much bigger and better known stock pickers to
rank as the industry’s best performer in the first quarter.

Apr 6, 2011

Two charged in insider case tied to M&A law firms

NEW YORK (Reuters) – A corporate lawyer and a trader were charged Wednesday with running a 17-year conspiracy to trade on corporate merger secrets stolen from three of the nation’s most prominent law firms, in one of the largest U.S. insider trading cases on record.

Matthew H. Kluger, who until last month was a lawyer at Wilson Sonsini Goodrich & Rosati PC, and the trader Garrett D. Bauer were accused of reaping more than $32.2 million of illicit profit by trading on tips about upcoming mergers and acquisitions.

Apr 1, 2011

Corrected -Paulson, at $4.9 billion, tops hedge fund earner list

NEW YORK (Reuters) – The richest 25 hedge fund managers made a bit less money last year. But don’t cry too hard. Collectively, this privileged class of traders did quite well for itself — raking in some $22 billion in compensation, according to AR Magazine.

Topping the charts in hedge fund pay was John Paulson, who reportedly earned $4.9 billion. Paulson’s name at the top of the “rich list” isn’t too surprising, given that his $36 billion Paulson & Co has emerged as one of the industry’s top performing funds.

Apr 1, 2011

Paulson, at $4.9 bln, tops hedge fund earner list

NEW YORK, April 1 (Reuters) – The richest 25 hedge fund
managers made a bit less money last year.

But don’t cry too hard. Collectively, this privileged class
of traders did quite well for itself — raking in some $22
billion in compensation, according to AR Magazine.