Skowron formerly worked as portfolio manager for FrontPoint Partners managing six healthcare funds. Prosecutors say Skowron used a consulting firm that specializes in connecting industry experts with hedge-fund managers to get in touch with Dr. Yves Benhamou, who was overseeing development of the drug Albuferon by Maryland-based drugmaker Human Genome Science.
In January 2008, Benhamou secretly told Skowron that the drugmaker was canceling a major portion of its Albuferon trial because of two patients who had suffered severe side effects. Skowron's funds immediately sold all Human Genome Science stock, and avoided the 44% drop in price when the news later became public.
Skowron is scheduled for sentencing on Nov. 4 before U.S. District Judge Denise Cote, while civil charges filed against him by the SEC remain outstanding. Benhamou pleaded guilty in May to four charges of insider trading and obstructing justice, and his sentencing is scheduled for Oct. 20.
FrontPoint has agreed to pay the SEC $33 million to settle its portion of the case.