The doctor has been charged with 2 counts of securities fraud and is still being held until bail is met.  The charges stated he provided inside information to a hedge fund which supposedly allowed the group to voice millions in losses.  It appears the doctor who is based in France is located here in the US.  This week there has been a flurry of investigations and arrests with inside trading violations.image

The violation was said to have taken place in last 2007 and 2008.  The hedge fund connected here is FrontPoint Partners which the Wall Street Journal states is being spun off from Morgan Stanley.  The suit states they were trading shares of Human Genome Sciences.You can view the pipeline here of the company.  There are no additional details and I assume we will hear more about how the entire case came about as it moves along.  What is insider trading?  I think we are all beginning to find out and how the laws are interpreted as they can be gray in areas and I am thinking a case would need to have to show substantial documentation that inside trading took place.  What is public knowledge and what is insider trading is sounds like we are going to hear a lot about it.  The US has some of the toughest laws in the world.  Here’s a video that discusses insider trading from the Wall Street Journal.  BD

NEW YORK—Bail was set at $3 million Wednesday for a French doctor who allegedly tipped a hedge-fund manager with confidential information in an insider-trading scheme.

At a detention hearing, U.S. Magistrate Judge Frank Maas in Manhattan set bail for Yves M. Benhamou, a 50-year-old Paris-based doctor specializing in liver diseases, at $3 million. He can be released from custody once he posts the bail, which is also to be secured by $1 million in property. Bail conditions include home incarceration in the New York area and electronic monitoring while charges are pending.

Bail Set For Doctor in Insider-Trading Case -


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