FRENCH DOCTOR SENTENCED IN MANHATTAN FEDERAL COURT FOR INSIDER TRADING SCHEME

22 December 2011 – Preet Bharara, the United States Attorney for the Southern District of New York, announced that YVES BENHAMOU, a French doctor who served as an adviser on a clinical drug trial, was sentenced today to time served and three years of supervised release for his participation in a scheme to commit securities fraud, conspiracy to engage in insider trading, obstruction of justice, and for making false statements to the FBI related to the scheme.

BENHAMOU provided material, non-public information (“Inside Information”) that he received in the course of his work on a clinical drug trial to Joseph F. Skowron III, a/k/a “Chip Skowron,” a former portfolio manager in the health care unit of a hedge fund group (the “Hedge Fund”). Skowron then used the Inside Information to avoid approximately $30 million in trading losses.

In addition, BENHAMOU agreed with Skowron to lie to the U.S. Securities and Exchange Commission (“SEC”) during an investigation into Skowron’s trading. BENHAMOU was sentenced today by U.S. District Judge George B. Daniels. In sentencing BENHAMOU, Judge Daniels granted the Government’s motion to depart downward from the U.S. Sentencing Guidelines based on the substantial cooperation BENHAMOU provided in this investigation.

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