D.C. Consultant Among Four Guilty in Political Intelligence Case

  • David Blaszczak sold secrets to hedge fund, N.Y. jury finds
  • Jury also convicts two Deerfield Management partners
Photographer: Andrew Harrer/Bloomberg
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A jury’s verdict sent a warning to Washington’s political intelligence industry and funds that rely on it: Trading on government secrets is as risky as using insider corporate information.

David Blaszczak, a Washington consultant who gave hedge funds advance word on Medicare reimbursement rates, was convicted Thursday of stealing secrets from the government and insider trading. A federal jury found that he provided hedge fund clients with tips he learned from ex-colleagues still in the government.