On June 15, Sanjay Valvani and Stefan Lumiere, the current and former managers of a healthcare-focused New York hedge fund, were charged with multiple counts of fraud in the SDNY. Valvani allegedly engaged in a scheme in which he would obtain confidential information regarding the FDA’s pending approval of generic drug applications from senior FDA official Gordon Johnston and then trade on the inside information, earning himself approximately $25 million in profits. Valvani is also charged with passing on this nonpublic information to another portfolio manager, Christopher Plaford. Lumiere’s charges relate to a separate scheme in which he and Plaford conspired to overstate the value of various securities held by the investment fund, earning Lumiere higher bonuses. United States v. Valvani, 14-cr-412 (S.D.N.Y.). DOJ Press Release.