On May 24, 2017, four individuals were charged and arrested in connection with a scheme to obtain and trade on material nonpublic information from Centers for Medicare and Medicaid Services (“CMS”).  The individuals arrested are David Blaszczak, a political intelligence consultant, Christopher Worrall, an employee at CMS, Theodore Huber, a partner at a health-care-focused hedge fund in New York (the “Fund”), and Robert Olan, also a partner at the Fund.  According to the indictment, the Fund hired Blaszczak as a consultant to provide information regarding CMS reimbursement decisions.  Huber, Olan, and Jordan Fogel, a former partner at the Fund who has pled guilty and is cooperating with the government, encouraged Blaszczak to obtain confidential and nonpublic information from CMS employees.  Blaszczak obtained confidential and nonpublic information from his friend and former CMS colleague Worrall, who allegedly provided such information to Blaszczak because of their friendship and because Blaszczak frequently offered to help Worrall find lucrative private sector employment.  Blaszczak, in exchange for providing this information to the Fund, was allegedly paid a consulting fee.  Blaszczak, Worrall, Huber, and Olan are charged with crimes, including conspiracy to convert property of the United States, conversion of property of the United States, securities fraud, and wire fraud.  The SEC has also filed civil charges against Blaszczak, Worrall, Huber, and Fogel.  Blaszczak is charged in a separate scheme for obtaining confidential and nonpublic CMS information and providing it to Christopher Plaford, a portfolio manager at a different health-care-focused hedge fund in New York.  Plaford has pled guilty and is cooperating with the government. United States v. Fogel, 1:17-cr-00308-DLC (S.D.N.Y)

DOJ Press Release