Friday, November 18, 2011

Who will do 5 years in Exchange for a 15 million Nest Egg?

Dealbook has as great piece today on Yale educated orthopedic surgeon turned star hedge fund manager Joseph F. Skowron. The piece Hedge Fund Manager is sentenced to 5 Years says it all.

It is a great read. You find out how Mr. Skowron used his medical knowledge to earn millions of dollars trading health care stocks. You also learn via the article how Mr. Skowron bribed a French doctor into leaking him confidential results about clinical drug trials on a company whose stock Mr. Skowron's fund owned. You will also learn how Skowron lied to the SEC in an attempt to cover up his crimes.

Now some may dispute this bribing of a doctor for info as simply the new world order on Wall St. also known as expert networks. But rather than split hairs here over minutia at Prudens Speculari I will focus on the results of which Skowron will serve a 5 year prison term and pay about $8million in "forfeiture and fines" to the government.

Here is what I want to focus upon:

Mr. Skowron earned more than $32 million at FrontPoint, according to the government. Even after paying his roughly $8 million in penalties, Mr. Skowron has a net worth in excess of $15 million, the government said.

Now my math is most definitely not Ivy league status but ending up with 15 million net worth after you pay 8million in fines?

As the title states, who here will do 5 years in prison in exchange for a 15 million nest egg when they come out. It seems to be a pretty damn sweet deal. Maybe we should toughen it up a little bit and ask who will do it standing on their head, maybe even with a room mate named Bubba?

Someone please inform Maria Bartiromo of cases like this douche bag Skowron's the next time she poses the question on how to restore trust in our capital markets.

2 comments:

abhasoft said...

thank you

Harleydog said...

abhasoft,

your welcome, thx for reading!

HD