The Top SEC Settlements of 2011

By Joel Stonington - 2012-01-03T23:18:44Z

Photograph by Louis Lanzano/Bloomberg

Company Symbol % Change
10 of 22

No. 12: Frontpoint Healthcare Flagship Fund, LP, and Five Other Frontpoint Healthcare Hedge Funds

<strong>FrontPoint Healthcare Flagship Fund, L.P., FrontPoint Healthcare Horizons Fund, L.P., FrontPoint Healthcare Healthcare I Fund, L.P., FrontPoint Healthcare Flagship Enhanced Fund, L.P., FrontPoint Healthcare Long Horizons Fund, L.P., and FrontPoint Healthcare Centennial Fund, L.P.</strong>

<strong>Total Settlement:</strong> $33 million<br /><strong>Disgorgement:</strong> $33 million<br /><strong>Penalty:</strong> 0

The leader of this insider trading scandal, Joseph F. "Chip" Skowron, was sentenced to five years in prison and said he would use the time for "healing and rehabilitation," <a href="http://www.bloomberg.com/news/2011-11-18/galleon-says-it-was-victim-of-skowron-inside-trades-as-he-faces-sentencing.html">according to Bloomberg</a>. Skowron paid a medical researcher in envelopes stuffed with cash for information that would avoid losses for the funds, according to court documents. FrontPoint <a href="http://sec.gov/news/press/2011/2011-91.htm">settled with the SEC</a> on the charges of insider trading, and the funds were closed.

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