Greenwich Resident Pleads Guilty to Insider Trading [Update]

Update 1:50 p.m.:

FrontPoint Partners has issued this statement concerning the insider trading guilty plea made in federal court Monday by Dr. Joseph 'Chip" Skowron of Greenwich. The statement was released by the communications firm ASC Advisors, which represents FrontPoint.

"Dr. Chip Skowron now admits that, through his individual actions, he willfully violated FrontPoint's principles, compliance policies and the Code of Conduct he signed. Dr. Skowron lied to and misled FrontPoint’s internal compliance team, the external counsel hired to independently investigate his actions, and the federal government. FrontPoint was never accused of any wrongdoing and has fully resolved this matter with the government."

Original story:

Dr. Joseph "Chip" Skowron, a Greenwich resident and a former manager of a hedge fund at FrontPoint Partners pleaded guilty on Monday for his role in an insider trading scheme.

The 42-year-old Skowron pleaded guilty to conspiracy to commit securities fraud and obstruct justice.

Skowron admitted he traded stock in Human Genome Sciences Inc. after receiving nonpublic information from a French doctor who served as a consultant for the biotech company, according to the Wall Street Journal. The doctor, who already pleaded guilty to providing the tips in exchange for cash and a trip.

When he is sentenced Nov. 18, Skowron faces a maximum of five years in prison, according to Reuters.