Chip Skowron, prominent hedge fund manager and board member of AmeriCares charity, was suspended by the FrontPoint hedge fund amid allegations that he was passed inside information about the results of the clinical trial of a promising drug by a French doctor.
Earlier today, the Securities and Exchange Commission accused Dr. Yves M. Benhamou of illegally tipping off a hedge fund manager (subsequently identified as FrontPoint's Skowron by CNBC) about the trial conducted by Human Genome Sciences Inc., "prompting the manager to dump roughly six million shares of the drug maker," reports the Wall Street Journal.
The inside information related to negative results, including the death of a trial participant, in the trial of the drug, Albuferon, which is used to treat hepatitis C.
FrontPoint, which prosecutors allege was able to avoid about $30 million in losses with the inside information. issued the following statement to CNBC:
We are cooperating fully with this investigation.We have placed Dr. Skowron on leave pending the outcome of the investigation.
Skowron, a managing director of Morgan Stanley, which just announced that it is spinning off FrontPoint, is on the board of directors of AmeriCares -- a profile on the charity's Website says that "Dr. Skowron has participated in AmeriCares disaster relief efforts since 1995, providing aid throughout the world, including India, Cuba, Kosovo, and New Orleans, Louisiana. He joined the board in 2008."
He was been praised for his charitable work since his time as an orthopedic resident at Massachusetts General Hospital ten years ago and he and his wife have co-chaired the group's annual benefit.